Seoul: South Korean companies with 10 trillion won (US$6.5 billion) or more in consolidated assets will be required to disclose information on their environmental, social, and governance (ESG) performance and risks starting in 2028, officials said Wednesday. The government and the ruling Democratic Party announced the plan, which covers a broader range of companies than the initial draft.

According to Yonhap News Agency, under the new plan, Korea Composite Stock Price Index-listed companies with 10 trillion won or more in consolidated assets will be required to publish ESG reports starting in 2028. The requirement will be further expanded to include companies with assets of 5 trillion won or more in 2029. Authorities are also considering extending the requirement to companies with assets of 2 trillion won or more beginning in 2030.

The number of companies subject to the mandatory disclosure requirement is expected to reach 291 in 2028 and 3,171 in 2029. Initially, the government's draft, released in February, would have mandated only companies with 30 trillion won or more in assets to disclose ESG information starting in 2028. However, the proposal was revised after gathering feedback from businesses, broadening the disclosure requirement to assist investors and other stakeholders in assessing companies' sustainability, ethical practices, and long-term value, while discouraging greenwashing.

The government and the ruling party plan to amend relevant laws to implement the program.