Korea’s Financial Services Commission announced the release of its draft roadmap for the implementation of mandatory sustainability disclosures, with a proposed start date for climate-related reporting for large companies of 2028, based on 2027 data, and expanding to smaller firms over time.
The draft roadmap was released alongside Korea’s Accounting Standards Boards’ finalized Sustainability Reporting Standards, which broadly align with those of the IFRS Foundation’s International Sustainability Standards Board (ISSB).
Under the new proposed roadmap, companies listed on Korea’s benchmark KOSPI Index with assets greater than KRW 30 trillion (USD$20.4 billion) will be required to begin sustainability reporting in line with the new standards in 2028, based on 2027 data. The roadmap envisions potentially expanding reporting requirements to KOSPI-listed companies with more than KRW 10 trillion in assets (USD$6.8 billion) one year later, with possible further expansion to smaller firms depending on readiness and international developments.
Korea’s new finalized sustainability standards include Standard No. 1: General Requirements for Sustainability-related Financial Disclosures, and Standard No. 2: Climate-related Disclosures, which correspond to the ISSB’s IFRS S1 (sustainability-related) and IFRS S2 (climate-related) standards.
The roadmap includes similar transitional reporting reliefs to the ISSB’s standards, but with longer and more open timelines for implementation of some reporting requirements. Most notably, while the ISSB standard includes a one-year relief from mandatory reporting on Scope 3 value chain GHG emissions, Korea’s roadmap proposes implementing mandatory Scope 3 reporting after 3 years to allow time for infrastructure to be put in place.
Additionally, the IFRS standards include a one-year “climate-first” transition relief allowing companies to initially focus on climate-related disclosures before reporting on other sustainability risks, Korea’s newly issued standards primarily focus on climate reporting, with disclosures on non-climate sustainability issues remaining optional for now and subject to potential expansion in the future.
The new roadmap also proposes that third-party assurance on sustainability disclosures start off as optional, with gradual mandatory adoption to be considered in line with global trends. The proposals also envision a gradual approach to enforcement, proposing that it focus initially on guidance, rather than on sanctions.
The Financial Services Commission is carrying out a public consultation on the proposals, with plans to finalize the roadmap in April 2026.
