Korea Releases Draft Roadmap for Mandatory Sustainability Reporting from 2028

South Korea's Financial Services Commission has released a draft roadmap for mandatory sustainability disclosures, with large KOSPI-listed companies expected to begin reporting based on 2027 data from 2028, under standards aligned with the IFRS Foundation's ISSB frameworks. The draft proposes a 3-year transition before Scope 3 emissions disclosure becomes mandatory.

Companies listed on Korea's KOSPI index with assets greater than KRW 30 trillion (USD 20.4 billion) will be required to report under the new standards from 2028, based on 2027 data. The roadmap envisions potential expansion to KOSPI companies with assets over KRW 10 trillion (USD 6.8 billion) one year later, with further expansion subject to readiness and international developments. Korea's finalized sustainability standards include Standard No. 1 covering general sustainability-related financial disclosures and Standard No. 2 on climate-related disclosures, corresponding to ISSB IFRS S1 and S2 respectively.

Korea's standards include similar transitional reliefs to the ISSB baseline but with longer timelines. While the ISSB provides a one-year Scope 3 relief, Korea proposes a three-year period before Scope 3 reporting becomes mandatory, to allow infrastructure development. The Korean standards currently focus primarily on climate disclosures, with non-climate sustainability disclosures remaining optional and subject to future expansion. Third-party assurance will initially be optional, with gradual mandatory adoption aligned to global trends. The draft roadmap is currently open for public consultation, with finalization expected in April 2026.

Korea's roadmap adds to a growing list of Asian jurisdictions implementing ISSB-aligned mandatory sustainability reporting frameworks, following commitments in Japan, Singapore, Hong Kong, and Australia. For India, which has mandatory BRSR Core sustainability disclosures for listed companies aligned with ISSB principles, Korea's phased approach — beginning with the largest listed companies and expanding over time — provides a useful comparison. Indian companies with operations or listings in Korea, and Korean investors with exposure to Indian markets, will need to navigate converging but distinct ISSB-aligned disclosure requirements across both jurisdictions.

Key figure — KRW 30 trillion (USD 20.4 billion) asset threshold for first phase