South Korea Mandates Sustainability Disclosure for 107 KOSPI Companies Starting 2028

According to the Financial Services Commission announced on July 6, South Korea will mandate sustainability disclosure for 107 KOSPI-listed companies with total assets of 10 trillion Korean won or more, beginning in 2028. The requirement will expand to 157 companies with assets above 5 trillion won in 2029 and 259 companies with assets above 2 trillion won by 2030. Companies must disclose carbon emissions, reduction targets, and climate change impacts on revenue, production facilities, and supply chains in their business reports.

South Korean business groups oppose the accelerated timeline and inclusion in mandatory business reports, citing unresolved methodological issues and liability risks. The policy expands beyond the Financial Services Commission's original February roadmap, which proposed starting with 30 trillion won-plus companies. Concerns focus on the uncertain nature of climate projections and the difficulty of calculating scope 3 emissions involving suppliers and consumers, combined with potential legal liability for inaccuracies.