Financial Services Commission "ESG Disclosure Postponed Until After 2026"

Considering Delays in Mandatory Disclosure Requirements in the US and Other Major Countries

The financial authorities have postponed the ESG (Environmental, Social, and Governance) disclosure requirement to after 2026. It was originally planned to be introduced from 2025, but the delay in mandatory ESG disclosures in major countries such as the United States influenced this decision.

On the 16th, the Financial Services Commission held the '3rd Meeting of the ESG Finance Promotion Team' and announced this. The FSC explained that the mandatory ESG disclosure in major countries like the U.S. has been delayed, and considering that the IFRS-ISSB, which serves as a domestic reference standard, was only finalized in June, the disclosure timeline has been postponed.

The specific introduction timeline will be finalized later after consultations with related ministries.

The FSC also plans to introduce the requirement gradually, starting with large listed companies, taking into account the preparation status of companies, and will expand the scope step-by-step considering international trends and domestic market conditions. At the initial stage of implementation, the level of sanctions will be minimized.

Kim So-young, Vice Chairman of the FSC, said, "Major advanced countries such as the European Union (EU) and the United States are strengthening ESG disclosure regulations and using them as leverage to develop and protect their domestic markets. Institutional support is necessary so that our companies, which are integrated into the global value chain and affected by these regulations, can adapt to the strengthened regulations of major overseas countries and secure global competitiveness."

This content was produced with the assistance of AI translation services.