South Korea's ESG Disclosure Becomes Mandatory Starting 2028 for Companies With 10+ Trillion Won in Assets

According to government policy announced on July 8, South Korea will transition ESG (environmental, social, and governance) disclosure from voluntary to mandatory starting in 2028. Listed companies with combined assets exceeding 10 trillion won will be required to disclose ESG data through business reports.

The mandate will expand in 2029 to companies with assets over 5 trillion won, with further expansion to 2 trillion won under review for 2030. Non-compliance may result in damages, administrative penalties, and criminal prosecution, though enforcement will be waived for the first three years to allow system stabilization. ESG disclosures must include direct emissions (Scope 1), indirect emissions from electricity purchases (Scope 2), and supply chain emissions (Scope 3).