Press Releases

Full-Scale Discussions Begin on Legal and Institutional Frameworks

for Establishing a Virtuous ESG Ecosystem

Rival Parties Join Forces to Launch the 'National Assembly ESG Forum’

- The National Assembly ESG Forum (Co-chaired by Rep. Min Byung-dug and Rep. Jeong Hee-yong) partners with 45 lawmakers from both ruling and opposition parties to discuss ESG legislation and systems.

- Consensus reached on the necessity of debating an "ESG Framework Act"… Seeking strategies to secure corporate autonomy while effectively responding to global regulations.

- Presentation of 10 major ESG policy agendas to be addressed during the 22nd National Assembly.

Full-scale discussions have commenced regarding the legal and institutional frameworks required to build a virtuous ESG (Environmental, Social, and Governance) ecosystem in South Korea.

On October 2nd at 2:00 PM, the offices of Representative Min Byung-dug (Democratic Party of Korea) and Representative Jeong Hee-yong (People Power Party) hosted the inauguration ceremony of the 'National Assembly ESG Forum' at the National Assembly Library Auditorium. Attendees included lawmakers from both rival parties, corporate executives, financial institution representatives, ESG specialized agencies, and civil society organizations. The launch was followed by a panel discussion on the "ESG Framework Act" as the inaugural debate for building a virtuous ESG ecosystem.

Co-chaired by Rep. Min Byung-dug and Rep. Jeong Hee-yong, the National Assembly ESG Forum in the 22nd National Assembly features a bipartisan coalition of 45 lawmakers (22 from the ruling party and 23 from opposition parties). The Korea Sustainability Investing Forum (KoSIF), an ESG think tank, and the United Nations Global Compact (UNGC) Network Korea will serve as the joint secretariat to support the forum.

Following its launch, the National Assembly ESG Forum plans to carry out various activities, including:

⦁ Creating a virtuous ESG ecosystem

⦁ Identifying legislative and policy tasks to promote ESG

⦁ Launching public awareness and action campaigns for ESG

⦁ Establishing international ESG cooperation networks

⦁ During the inauguration ceremony, Co-chair Min Byung-dug stated:

"It is highly meaningful to continue the ESG Forum from the 21st National Assembly. To respond to climate change and other challenges, we need the wisdom to harmoniously balance the environment, society, and governance. This is why we are striving to use the National Assembly ESG Forum as a unique cradle for gathering integrated policy ideas that transcend political parties.“

Co-chair Jeong Hee-yong noted:

"In line with international trends, demands for building ESG infrastructure and ecosystem foundations are rising domestically. However, if ESG policies focus strictly on regulations, it could place a heavy burden on society and the economy as a whole. Therefore, some argue we should focus on supportive measures to remain flexible to change. The National Assembly ESG Forum will serve as a balanced policy platform by providing an open arena for discussion.“

The National Assembly ESG Forum was launched to establish National Assembly-level discussions and alternatives to enhance our society's sustainability during a global paradigm shift addressing sustainability crises such as climate change, ecological crises, inequality, and polarization. Eun-kyung Lee, Director of the UNGC Network Korea—which co-anchors the joint secretariat alongside KoSIF—shared the operational plan:

"We will divide the National Assembly ESG Forum into the ESG Management Division and the ESG Finance Division. Under the principles of non-partisanship, expertise, and diversity, we will actively support the establishment of the necessary laws and systems for a virtuous ESG ecosystem through seminars and forums.“

Jong-oh Lee, Executive Director of KoSIF, presented 10 major ESG policy agendas to be discussed and resolved in the 22nd National Assembly to build a virtuous ESG ecosystem. Director Lee emphasized that discussions must cover:

⦁ The ESG Framework Act

⦁ Mandatory ESG Information Disclosure

⦁ K-Sustainable Finance Action Plan

⦁ K-Sustainable Finance Disclosure

⦁ Integration of Climate Risks into Asset Quality Assessments

⦁ Net-Zero Policies for Public Finance Asset Portfolios

⦁ ESG Integration and Expansion of Shareholder Rights for Public Pension Funds

⦁ ESG Supply Chain Due Diligence Act

⦁ ESG Public Procurement

⦁ Strengthening Countermeasures Against ESG Greenwashing

Key Takeaways from the Panel Discussion on the 'ESG Framework Act'

Following the inauguration, a commemorative seminar was held to discuss the 'ESG Framework Act.' Considered essential for building a virtuous ESG ecosystem, the necessity of this act has been steadily raised; during the previous 21st National Assembly, similar bills were proposed by former Rep. Lee Won-wook (Democratic Party) and Rep. Chae-jin Cho (People Power Party).

Tae-han Kim, Chief Researcher at KoSIF, presented on the necessity of enacting the ESG Framework Act. Analyzing the legal and institutional trends into 'introducing comprehensive ESG infrastructure systems' and 'strengthening legal frameworks for individual ESG issues,' Kim argued:

"ESG is a long-term initiative. Under South Korea's five-year single-term presidency system, establishing a legal foundation for long-term stability is far more critical than relying solely on administration-led plans. Since ESG policies impact all members of society as stakeholders and must deal with the overall economic system, enacting a framework act is more appropriate than taking a fragmented, piecemeal legislative approach.“

As similar international precedents, he cited the European Union’s Corporate Social Responsibility (CSR) Strategy and Sustainable Finance Action Plan.

The panel discussion—moderated by Choon-seung Yang, Standing Director of KoSIF—included representatives from the Financial Services Commission (FSC), the Korea Chamber of Commerce and Industry (KCCI) Sustainable Management Center, the Korea Capital Market Institute (KCMI), the Korean Bar Association’s ESG Special Committee, the Korea Institute of Corporate Governance and Sustainability (KCGS), and the Center for Good Corporate Governance (CGCG). While panelists generally agreed on the enactment of the ESG Framework Act, various balanced perspectives were shared, emphasizing corporate support measures.

Young-jun Cho (Director of the KCCI Sustainable Management Center): While agreeing with the intent of the ESG Framework Act, he noted, "Given that developed countries are moving toward using ESG as a trade regulation rather than just a tool to improve corporate competitiveness, South Korea should focus its policy on supporting companies to respond to overseas regulations rather than introducing domestic regulations."

In-hyung Lee (Senior Research Fellow at KCMI): He suggested that a virtuous ESG ecosystem is driven less by a framework act and more by high-quality information disclosure that stimulates investment, shifts corporate value, and strengthens incentives through financing competitiveness. He stressed, "Since preparing for ESG disclosure is difficult for corporations to achieve alone, government support and efforts are essential."

Sung-taek Lim (Chairman of the Korean Bar Association’s ESG Special Committee): He pointed out that the institutionalization of ESG is accelerating, with climate crisis response, sustainable finance, and human rights/environmental due diligence becoming legalized in Europe and the United States. "Korea must align with this global regulatory trend. Specifically, if companies fail to respond to environmental and human rights management required in global supply chains, they risk being excluded from global competition. We must establish a legal foundation so Korean companies can pursue ESG from a long-term perspective," Lim emphasized.

Jae-gyu Jeong (Head of the Information Analysis Center at KCGS): Focusing on ESG rating agencies, proxy advisory firms, and ESG verification bodies as core infrastructure for ESG management, he stressed, "Sufficient ESG information must be provided to the market as a prerequisite. Unlike overseas markets, Korea's ESG evaluation market is still very nascent. For fair and objective evaluations to occur, and for ESG information to be utilized as a basis for decision-making across various objectives, we need to foster and activate the evaluation market itself."

Seung-hee Lee (Research Fellow at CGCG): Mentioning the necessity of a basic plan to promote ESG management, she added, "We need a long-term policy direction and a central 'control tower.' Conducting ESG management surveys and collecting statistical data are critical to building an infrastructure that helps companies maintain transparent and responsible ESG management."

Concluding the discussion, Choon-seung Yang, Standing Director of KoSIF, stated:

"While many forums open in the National Assembly, a forum where both rival parties participate so equally and simultaneously is truly unprecedented. The primary objective of this National Assembly ESG Forum should be passing the 'ESG Framework Act.' I hope both parties can reach an agreement and align their steps to pass the act within the next two years.“

Meanwhile, high-profile figures—including National Assembly Speaker Woo Won-shik, People Power Party Leader Han Dong-hoon, Democratic Party Leader Lee Jae-myung, People Power Party Floor Leader Choo Kyung-ho, Minister of Trade, Industry and Energy Ahn Duk-geun, Minister of Environment Kim Wan-sub, and Financial Services Commission Chairman Kim Byung-hwan—delivered congratulatory remarks, lending substantial political weight and support to the launch and future endeavors of the National Assembly ESG Forum.

Inquiries: Jong-O Lee CIO (argos68@kosif.org), Dajeong Kim  Senior Researcher (kimdj@kosif.org)