An international consortium of institutional investors, managing over USD 3.5 trillion (₩4,700 trillion) in assets, has urged Korea’s Financial Services Commission (FSC) to establish mandatory sustainability-related disclosures by 2026. In an open letter, the investors pressed for clear regulatory requirements, arguing that transparency in climate-related risks is essential for responsible investment decisions.
The investor group, Asia Investor Group on Climate Change (AIGCC), is urging the FSC to establish a disclosure roadmap by the end of 2024. This roadmap should include a phased approach, with a requirement that listed companies holding assets over 2 trillion KRW publish climate-related disclosures by 2026. Additionally, the letter calls for the FSC to make the Korean Sustainability Disclosure Standards available in English and to require companies to provide English versions of their sustainability reports.
Rebecca Mikula-Wright, CEO of AIGCC, stressed the need for alignment with global standards to enhance investor confidence and attract international capital. “We strongly encourage the FSC to implement mandatory sustainability-related disclosure in Korea by 2026,” she said. “Investors need relevant, consistent, and comparable information from corporates to support responsible investment decisions and capital allocation. Aligning Korea’s reporting standards with international frameworks will boost investor confidence in Korean companies, enhance corporate transparency, and strengthen Korea’s competitiveness in the global market.”
Monica Bae, AIGCC’s Director of Investor Practice, advocated for an accelerated implementation timeline, noting that many Korean companies have already demonstrated effective sustainability reporting. “We recommend the FSC to mandate sustainability disclosures even earlier than 2026, using a phased-in approach. Companies can attract global investors by proactively disclosing their climate-related strategies, risks, and opportunities,” she stated. “This transparency empowers investors to allocate capital effectively and boosts the value of Korean companies on the global stage.”
The letter follows AIGCC’s recent consultation response to the Korea Sustainability Standards Board (KSSB) on its draft disclosure standards. With growing investor interest in climate action, AIGCC, through its Korea Working Group launched in July 2024, will continue to engage with Korean companies to drive sustainable practices across the board.