Ruling and Opposition Parties to Implement Climate Disclosure for Companies with Assets Over 10 Trillion Won from 2028... Capital Markets Act to Be Amended This Year

Gradual Expansion of Target Companies

Temporary Comprehensive Exemption for Climate Disclosure

Financial Services Commission: "Companies to Focus on Sustainability and Enhance Competitiveness"

The ruling and opposition parties have agreed to implement a climate disclosure system starting in 2028, but only for companies with total assets exceeding 10 trillion won. The scope of the disclosure requirement is expected to be gradually expanded.

Han Jeong-ae, policy chief of the Democratic Party, said after the "party-government consultation on the institutionalization of sustainability disclosure" held at the National Assembly on July 8 that, "Although there are concerns from the industrial sector, many believe that it is better to proceed with the mandatory disclosure at a fast pace, taking into account overseas precedents." She added, "We have decided to make climate disclosure a statutory system by including it in the Capital Markets Act as a priority." Han further explained, "Although the timing will vary depending on the size of the listed KOSPI companies, we will start in 2028 with companies that have total consolidated assets exceeding 10 trillion won."

Lee Okwon, Chairman of the Financial Services Commission, is speaking at the party-government consultation on the institutionalization of sustainability disclosure held at the National Assembly on July 8, 2026. Photo by Hyunmin Kim

The initial roadmap proposed starting with companies with assets over 30 trillion won, but the scope has now been expanded. Lee Okwon, chairman of the Financial Services Commission, explained, "In 2029, we will expand the requirement to companies with assets over 5 trillion won, and after evaluating the progress, we will consider further expansion to those with assets over 2 trillion won in 2030." In the early stages, a comprehensive exemption system will be applied "as long as it does not undermine the accountability and structure of disclosure."

Another key feature is that the disclosure will become a statutory requirement under the law, rather than an exchange disclosure. Accordingly, the ruling and opposition parties plan to amend the Capital Markets Act within this year. In addition, starting two years after the disclosure requirement is enforced, certification will also become mandatory, with the certification standards and other details to be specified by law.

Chairman Lee stated, "Through institutionalizing the disclosure system, we will enable companies to fully focus on sustainability, enhance their competitiveness, actively expand internationally, and attract more investment, thereby creating a positive cycle for further growth."

This content was produced with the assistance of AI translation services.