South Korea finalises ISSB-aligned sustainability disclosure roadmap
South Korea has finalised its roadmap for mandatory sustainability reporting, with the government and ruling party agreeing a plan that accelerates the timeline set out in February’s draft.
Under the final roadmap, companies listed on the Korea Composite Stock Price Index (KOSPI) with consolidated total assets of KRW 10 trillion or more (around USD 7 billion) will report from fiscal year 2027, applying standards KSSB 1 and KSSB 2 – the Korea Sustainability Standards Board’s local implementation of IFRS S1 and S2. The scope extends to companies with assets of KRW 5 trillion or more from FY2028, with a further expansion to KRW 2 trillion under review. Including subsidiaries, an estimated 3,171 companies will be covered by 2029.
Disclosures will be made in companies’ annual business reports under an amended Capital Market Act, giving sustainability information the same legal status as financial reporting. To smooth the transition, a penalty exemption applies for the first three years and Scope 3 emissions disclosures are deferred by three years for each group of companies, while third-party assurance becomes mandatory two years after reporting begins. Pilot tests kick off this year.
With Korea joining Japan, China and others across the region in embedding ISSB-based standards into law, the global baseline continues to gather momentum. Consistent, comparable digital disclosure is the natural next step.
Read more here (in Korean).
