ESG Policy & Legislation

ESG Policy & Legislation Strong ESG policy and legislation are essential to embedding sustainability into business, finance, and markets.

KoSIF supports the development of Korea’s ESG policy framework through policy research, legislative support, and practical recommendations. We engage with policymakers, regulators, the National Assembly, and other stakeholders to strengthen the institutional foundation for sustainable markets.

Enacted Amendments

January 28, 2015

National Pension Act Amendment

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January 27, 2016

Government Procurement Act Amendment

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December 12, 2017

Industrial Development Act Amendment

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National Assembly Legislative Support
Policy Recommendations to Government and Regulators
Parliamentary Forums and Secretariat Support

Enacted Amendments

Industrial Development Act Amendment (December 2017)
1. ·
  Required the government to establish a five-year policy plan to promote corporate sustainable management
2. ·
  Defined sustainable management as business practices that consider economic performance, environmental soundness, and social responsibility
3. ·
  Created a legal basis for designating support centers to help companies advance sustainable management

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Government Procurement Act Amendment (January 2016)
1. ·
  Established a legal basis for incorporating social and environmental value into public procurement procedures
2. ·
  Allowed public procurement to reflect considerations such as the environment, human rights, labor, employment, fair trade, and consumer protection
3. ·
  Strengthened the role of public procurement in encouraging corporate social responsibility

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National Pension Act Amendment (January 2015)
1. ·
  Established a legal basis for the National Pension Fund to consider environmental, social, and governance factors when investing in securities
2. ·
  Added ESG-related considerations to the Fund Management Guidelines and relevant disclosure items
3. ·
  Created an institutional basis for responsible investment within Korea’s public pension system

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Pending Bill

Special Act on Promoting Finance for Climate Crisis Response (Proposed in July 2024)
1. ·
  Provides a basis for establishing a national plan to promote climate finance
2. ·
  Aims to expand financial support for responding to the climate crisis

Past Legislative Initiatives

21st National Assembly
1. ·
  Bill on Promoting Environmental, Social, and Governance Management, September 2023
2. ·
  Capital Markets Act Amendment, June 2021
3. ·
  Special Act on Promoting Green Finance for Climate Crisis Response, November 2020
4. ·
  Government Procurement Act Amendment, August 2020
20th National Assembly
1. ·
  Electric Utility Act Amendment, December 2018
2. ·
  Renewable Energy Act Amendment, December 2018
3. ·
  Electric Utility Act Amendment, June 2018
4. ·
  Renewable Energy Act Amendment, June 2018
5. ·
  National Finance Act Amendment, June 2017
6. ·
  Korea Investment Corporation Act Amendment, November 2016
7. ·
  Capital Markets Act Amendment, November 2016
8. ·
  Capital Markets Act Amendment, August 2016
19th National Assembly
1. ·
  Government Contracts Act Amendment, December 2014
2. ·
  Capital Markets Act Amendment, August 2013
18th National Assembly
1. ·
  National Pension Act Amendment, April 2009

Key Policy Recommendations

National Government

Helped drive improvements to Korea’s roadmap for mandatory ESG disclosures through policy recommendations and engagement with the government, the National Assembly, civil society, and the media
Contributed to the revision of Korea’s National Pension Service (NPS) Guidelines on Stewardship Activities, incorporating climate change and industrial accidents as priority engagement issues
Supported the NPS’s adoption of the Stewardship Code and the establishment of the Special Committee on Responsible Investment and Governance
Provided policy recommendations for expanding corporate renewable electricity procurement, including the Green Premium program, third-party PPAs, and direct PPAs

Local Governments

Proposed Korea’s first coal phase-out public treasury campaign for local governments and offices of education in May 2019
Expanded the campaign in September 2020, with 56 local governments and offices of education across Korea joining the initiative

Parliamentary Forums and Secretariat Support

National Assembly ESG Forum, 22nd National Assembly — Launched in October 2024 (Co-chairs: Rep. Byoungdug Min and Rep. Heeyong Jung)
National Assembly ESG Forum, 21st National Assembly — 2021–2024 (Co-chairs: Rep. Sungjoo Kim and Rep. Haejin Cho)
National Assembly Forum on Business Anti-Corruption Cooperation — Launched in 2020 (Chair: Rep. Yonsun Lee)
National Assembly Policy Research Forum on Socially Responsible Investment, 20th National Assembly — 2016–2020 (Co-chairs: Rep. Wonwook Lee and Rep. Hanpyo Kim)

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Contact

kosif@kosif.org