Governance Briefing — March 31, 2025
Korean issuers with assets above KRW 2 trillion file their first mandatory ESG disclosures alongside 2024 business reports, compelling boards to attest to sustainability governance and data controls under the FSC roadmap.
Executive briefing: The Financial Services Commission’s (FSC) Mandatory ESG Disclosure Roadmap requires KOSPI-listed companies with total assets of at least KRW 2 trillion to submit sustainability reports with their 2024 business reports filed by 31 March 2025. Boards must certify governance structures, strategy, risk management, and metrics consistent with the Korea Exchange guidance aligned to global standards.
Key governance signals
- Board responsibility for ESG reporting. The roadmap mandates management body oversight of ESG information and encourages board committees to supervise data reliability.
- Scenario and target disclosures expected. The Korea Exchange guidebook references TCFD pillars, pushing companies to describe transition strategies, targets, and monitoring cadence.
- Phased expansion continues. Companies with assets above KRW 1 trillion enter in 2026, so 2025 filers set precedents regulators will assess closely.
Action checklist
- Confirm board or committee charters explicitly assign ESG disclosure oversight and require periodic dashboards before March filing.
- Validate greenhouse gas, workplace, and supply chain data controls, including third-party assurance or agreed-upon procedures where gaps exist.
- Document scenario analysis assumptions and board challenge for climate and social targets to support narrative disclosures.
Sources
- FSC Press Release: Roadmap for Mandatory ESG Disclosure (January 2021)
- Korea Exchange ESG Disclosure Guidebook
Zeph Tech supports Korean boards in instituting ESG disclosure controls, assurance roadmaps, and committee reporting cycles ahead of the 31 March 2025 deadline.