Government and Industry Ahead of ESG Disclosure Mandate: "Let's Reduce On-Site Confusion"

The government and industry discussed practical measures ahead of the mandatory ESG (Environmental, Social, and Governance) disclosure in 2026. The industry proposed creating standards that align with global standards while fitting the realities of Korean companies, and the government responded by pledging to prepare substantial support measures to enhance the ESG management capabilities of domestic companies.

On the 7th, the Korea Employers Federation (KEF) held the "2nd ESG Management Committee" at the Korea Press Center in Jung-gu, Seoul. At this event, Kim So-young, Vice Chairperson of the Financial Services Commission, attended and discussed ways to promote ESG disclosure among Korean companies.

Son Kyung-sik, Chairman of KEF, emphasized, "The standards presented by the international community tend to be somewhat abstract or lack sufficient explanation due to the diverse circumstances of each country," adding, "Domestic standards should provide clearer guidelines to minimize companies' concerns and confusion."

He also appealed to consider that the main supply chains of our manufacturing-centered companies are primarily located in developing countries. Chairman Son said, "The mandatory ESG disclosure should be comprehensively judged by monitoring the situations in developing countries as well," and added, "At present, it is not easy to secure ESG consolidated data with guaranteed reliability."

Son Kyung-sik, Chairman of the Korea Employers Federation, is speaking at the "2nd ESG Management Committee" held at the Press Center in Jung-gu, Seoul on the 7th.
[Photo by Kyungchong]

At the event, Vice Chairperson Kim from the government side listened to the ESG disclosure preparation status of major groups and expressed the intention to prepare practical support measures. Vice Chairperson Kim stated, "We plan to first review mandatory disclosure in the climate sector, where international consensus has been formed," and added, "We will promote it through exchange disclosures, which impose relatively less legal burden, so that companies can gradually adapt to the new system, and we will consider minimizing sanctions in the early stages of the system's introduction."

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