Vice Chair Kim So-young: "ESG Disclosure is the Starting Point of ESG Policy"

Chairman Kim Attends KRX ESG Forum 2023

Kim So-young, Vice Chair of the Finance Committee. Photo by Joint Press Corps

Kim So-young, Vice Chairman of the Financial Services Commission, stated on the 31st that "corporate ESG (Environmental, Social, and Governance) disclosure is the starting point and foundation of ESG policies."

Vice Chairman Kim attended the 'KRX ESG Forum 2023' hosted by the Korea Exchange in Yeouido, Seoul, and said, "Starting this year, we have formed the 'ESG Finance Promotion Team' to promote various tasks aimed at creating an ESG finance ecosystem that connects disclosure, evaluation, and investment."

The forum, held under the theme of 'Desirable Directions for the Introduction of Domestic ESG Disclosure Systems,' brought together experts from various fields to share opinions on the current status, cases, and future directions of ESG disclosure.

Vice Chairman Kim explained, "When ESG disclosure is conducted transparently and thoroughly, ESG investment can be activated, and corporate ESG management can be promoted. Companies with well-functioning ESG management systems will receive high evaluations in the market and be able to provide higher-quality disclosure information."

Regarding concerns that the ESG disclosure system might impose a short-term burden on corporate management, Vice Chairman Kim emphasized, "It is also an important consideration that the industrial structure of our economy and the characteristics of companies must be well reflected."

The mandatory ESG disclosure policy was announced about three years ago. Previously, the Financial Services Commission planned to gradually apply mandatory ESG disclosure to domestic listed companies starting in 2025 but postponed the timeline to after 2026. This decision was based on delays in mandatory ESG disclosure in major countries such as the United States. The delay was also attributed to corporate opposition, as it was considered difficult to prepare for ESG disclosure without the government’s concrete guidelines.

Vice Chairman Kim stated, "In particular, through discussions in the 'Korea Sustainability Standards Board (KSSB),' a consultative body involving various stakeholders such as companies and investors, we will specify the ESG disclosure standards to be applied to domestic companies in the first quarter of next year," adding, "The detailed standards, targets, and timing of mandatory ESG disclosure will be specified through consultations with related ministries."

She continued, "We are also exploring various support measures to enhance companies’ ESG management capabilities," and added, "We will promote practical measures that can help companies, such as disclosure guidelines and incentives, and ease regulatory burdens during the early stages of system implementation."

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