Kim So-young (R), vice chairman of the Financial Services Commission, speaks during a meeting at the Korea Chamber of Commerce and Industry headquarters in Seoul on Feb. 14, 2024, to discuss environmental, social and governance disclosure standards in this photo provided by the financial regulator. (Image courtesy of Yonhap)
SEOUL, Feb. 14 (Korea Bizwire) — The financial regulator said Wednesday it will unveil a set of guidelines on public disclosures for investments that commit to environmental, social and governance (ESG) goals in March or April, the financial regulator said Wednesday.
The new standards, however, will continue to be subject to changes until their implementation in 2026 or later, according to Kim So-young, vice chairman of the Financial Services Commission (FSC).
“Considering that discussions of ESG disclosures are being delayed in other key economies, including the United States, the government has decided to implement local ESG disclosure standards after the start of 2026, with the exact date of implementation to be decided later through consultations with related offices,” Kim said while meeting with officials from related government agencies and businesses.
“Also, it has agreed to keep the level of sanctions to the lowest point in the early stages of implementation … so that businesses can get used to the new system gradually,” he added.
ESG disclosures refer to reporting by firms about their performances across a variety of ESG issues that may be related to sustainable growth.
The vice chief of the FSC stressed that the new disclosure standards will have minimal impact on local businesses.
“The government plans to legislate ESG disclosure standards while keeping the following points in mind. First, it will work to minimize burdens on businesses by legislating ESG disclosure standards that are interoperable with global standards,” the FSC vice chief said in a meeting with officials from related offices and businesses,” he told the meeting.
“Second, (it) will fully take into consideration the conditions of the local economy and businesses.”
(Yonhap)
