South Korea ESG Regulations

South Korea has introduced mandatory ESG disclosure for listed companies and is implementing K-Taxonomy (Korean Green Classification System) to guide sustainable finance.

Regulatory Framework

Financial Services Commission (FSC) — ESG disclosure regulations
Korea Exchange (KRX) — Listing requirements
Ministry of Environment — K-Taxonomy and environmental regulations

Key Requirements

Mandatory ESG Reports — Required for KOSPI companies from 2025
K-IFRS Sustainability Standards — Aligned with ISSB IFRS S1 and S2
K-Taxonomy — Classification of environmentally sustainable activities

K-Taxonomy

The Korean Green Classification System defines green activities across six environmental objectives, similar to EU Taxonomy:

1. Greenhouse gas reduction
2. Climate change adaptation
3. Sustainable water management
4. Circular economy transition
5. Pollution prevention
6. Biodiversity protection

Why Korea ESG Matters

South Korea is the world's 10th-largest economy with major global corporations (Samsung, Hyundai, LG). Korea's ESG regulations influence global supply chains and technology sectors.

Primary Source Documents

Part of ESG Hub | Curated by Ascent Partners Foundation