Press Releases

Discourse on Institutionalizing ESG Disclosures Gains Full Momentum… National Assembly ESG Forum Explores Reform Directions for the 'Capital Markets Act'

- "Mandating ESG Disclosures Without a Statutory Basis Carries Structural Limitations"

- Over 200 ESG Stakeholders Gather for In-Depth Policy Forum on September 30th

- The 22nd National Assembly ESG Forum successfully hosted the "Forum on Frameworks for Institutionalizing ESG Disclosures: Directions for Amending the Capital Markets Act" on September 30th at the Main Auditorium of the National Assembly Library.

The policy forum was organized to examine the legislative necessity and concrete statutory pathways for codifying ESG disclosures into law. It drew intense engagement from over 200 attendees, including domestic and international ESG experts, government officials, financial regulators, and corporate executives.

The event commenced with opening remarks from the co-chairs of the National Assembly ESG Forum. National Assembly Member Byung-dug Min (Democratic Party of Korea) stated in his opening address:

"ESG disclosure is no longer a matter of corporate discretion; it is an absolute prerequisite for corporate management and a core pillar of national competitiveness. I anticipate this forum will accelerate the establishment of our legal and institutional foundations.“

National Assembly Member Hee-yong Jeong (People Power Party) also emphasized:

"South Korea must aggressively engage in structured discourse and construct institutional frameworks to ensure we do not lag behind the shifting tides of the international community."

Young-ho Kim, Chairperson of the Korea Sustainability Investing Forum (KoSIF), delivered a sharp critique of domestic regulatory delays:

"While major economies are rapidly pushing ESG disclosures forward via mandatory statutory timelines, the pervasive uncertainty stemming from South Korean financial authorities is paralyzing corporate resource allocation and eroding our industrial competitiveness. The financial authorities must make the decisive resolution to mandate statutory ESG disclosures within official business reports starting in 2027 (FY26) for all listed entities with total assets of KRW 2 trillion or more."

Following Chairperson Kim, Yeon-chul Yoo, Secretary General of the UN Global Compact (UNGC) Network Korea, remarked:

"The international community is already utilizing ESG disclosures as the universal common language for corporate valuation. ESG reporting has transcended voluntary corporate transparency to become a core institutional mechanism underwriting the trust and integrity of capital markets. It is high time for South Korea to institute an architecture fully aligned with these global benchmarks."

Global Investor Networks Highlight ISSB Integration; Keynotes Focus on Balanced Legislative Design

A major highlight of the forum was the keynote address by Nathan Fabian, Chief Sustainable Systems Officer (CSSO) at the Principles for Responsible Investment (PRI), a premier global investor network representing over 5,000 institutional signatories across more than 60 countries.

CSSO Nathan Fabian emphasized:

"ESG disclosure delivers indispensable datasets for modern allocation; accurate data unlocks superior investment decisions and facilitates smoother corporate capital raising. From an institutional investor perspective, it is imperative that jurisdictions swiftly adopt ISSB standards to realize a cohesive global disclosure architecture."

The forum proceeded with technical presentations detailing global ESG dynamics and legislative strategies for amending the Capital Markets Act:

⦁ Global Regulatory Dynamics & Corporate Strategy: Tae-han Kim, COO of KoSIF, mapped out the institutionalization of ESG disclosures across major jurisdictions like the EU and the U.S. To strengthen domestic ESG competitiveness, COO Kim proposed three actionable policy pillars:

1. Enactment of a foundational Framework Act on ESG.

2. Elevating the practical enforcement of the National Pension Service’s (NPS) focus list items.

3. The introduction of voluntary corporate safety information disclosure programs.

Legal Mapping for the Capital Markets Act: Professor Min-kyung Lee of the School of Law at Sungshin Women's University introduced global legislative trends regarding sustainability disclosures and assurance auditing. Professor Lee noted, "It is legally untenable to mandate ESG disclosures effectively without explicit, underlying statutory authorization." She emphasized that "balanced legislative design is vital—incorporating corporate incentive structures, safe harbor provisions for liability relief, and phased implementation timelines to mitigate corporate compliance friction while simultaneously securing rigorous data transparency."

The subsequent panel discussion was moderated by Dr. Karl C. S. Yang, CEO of KoSIF. The panel brought together diverse market perspectives to debate the legal codification of ESG and the direction of the Capital Markets Act. The panel featured:

⦁ Young-jun Cho, Director General of the Sustainable Management Initiative at the Korea Chamber of Commerce and Industry (KCCI)

⦁ Chi-yeon Choi, Director of the Fair Market Division at the Financial Services Commission (FSC)

⦁ Woong-hee Lee, Standing Member of the Korea Accounting Standards Board (KASB)

⦁ Eun-kyung Lee, Head of Secretariat at UNGC Network Korea

⦁ Won-woong Kim, Head of the ESG Strategy Team at the National Pension Service (NPS)

⦁ Yong-hwan Choi, Head of the ESG Research Team at NH-Amundi Asset Management

Current Legislative Outlook

The current administration has established the institutionalization of ESG disclosure standards and roadmaps as a core national policy objective. Concurrently, legislative momentum is building within the National Assembly, highlighted by the introduction of bills such as the Draft Act on Human Rights and Environmental Protection for Corporate Sustainable Management.

Because institutionalizing ESG disclosures directly dictates national economic competitiveness by securing market trust and fostering sustainable corporate growth, it remains a top-tier policy priority globally. The National Assembly ESG Forum reaffirmed the extreme urgency of this legislative path and intends to drive consecutive follow-up dialogues uniting the government, the legislature, and industry stakeholders.

The National Assembly ESG Forum is a bipartisan policy research coalition launched in October last year by 45 lawmakers from both ruling and opposition parties. It is dedicated to strengthening the ESG competitiveness of domestic corporations and financial institutions while constructing the infrastructure required to catalyze a virtuous ESG ecosystem. KoSIF and UNGC Network Korea jointly serve as the forum’s dual secretariat. [END]

 Inquiries: Dajeong Kim  Senior Researcher (kimdj@kosif.org)