■ ESG Finance Promotion Task Force 5th Meeting
Kim So-young: “Consideration of High Manufacturing Proportion in Industrial Structure”,
Kim So-young, Vice Chairman of the Financial Services Commission, held the 5th meeting of the ESG Finance Promotion Task Force at the Korea Financial Investment Association in Yeouido, Seoul on the 23rd, reviewing recent trends in major countries such as the European Union’s (EU) trend of easing sustainability (Omnibus Package) and discussing the review of disclosure standards reflecting opinions gathered after the preliminary draft announcement. Photo provided by the Financial Services Commission,
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, ‘The Financial Services Commission announced that, ahead of the preparation of an “ESG Disclosure Roadmap” slated for release in the first half of this year, it will decide on disclosure standards and the roadmap by examining trends in major countries where the direction is shifting towards easing sustainability regulations.’,
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, ‘At the 5th ESG Finance Promotion Task Force meeting held in Yeouido, Seoul, on the 23rd, Vice Chairman Kim So-young explained, “Considering the characteristic of South Korea’s industrial structure, where the proportion of manufacturing is high, there is a need to engage in in-depth discussions on disclosure standards and the roadmap, while observing trends in major countries.” The ESG Finance Promotion Task Force was established in February 2023 to systematically pursue various policy tasks across ESG disclosure, evaluation, and investment, in collaboration with companies, investors, academics, experts, and related institutions.’,
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, ‘In his opening remarks, Vice Chairman Kim stated, “Taking into account that the EU’s mandatory disclosure for non-EU companies is set for 2029, we will discuss the timing of the first disclosure for companies with a high need to provide information to domestic and international investors.” He added, “For Scope 3, we will provide sufficient grace periods and allow estimation in parts to alleviate corporate burdens while ensuring adequate information is provided to investors, drawing from examples such as the EU and Japan, and considering companies’ preparedness.”’,
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, ‘During the meeting, the details of the Omnibus Package proposal, announced by the European Commission in February this year, were shared. The Omnibus Package, which aims to ease sustainability regulations, includes content such as narrowing the scope of entities required to disclose sustainability information (exempting companies with fewer than 1,000 employees), gradually postponing disclosure timelines, and examining the simplification of disclosure standards. Japan is also considering a phased approach to disclosure for Prime Market listed companies with a market cap of over 3 trillion yen starting in 2027, while in other major countries such as the UK, US, and Canada, disclosure systems have yet to be finalized.’,
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, ‘In response, the Korean Accounting Standards Board stated that it is considering requiring disclosures at a consolidated level but allowing the exclusion of subsidiaries that are not financially significant concerning sustainability when determining the scope of disclosure. For Scope 3, they are considering options such as allowing a grace period for disclosure and permitting estimates in cases where data measurement is challenging, while weighing information utility and international alignment, and corporate burden. The KSSB plans to announce the final disclosure standards after a resolution and distribute educational materials and FAQs to aid in the understanding of disclosure standards.’,
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, ‘A Financial Services Commission official stated, “We plan to carefully examine the disclosure trends of major countries including the EU, reflecting the opinions presented today, and review and consult on disclosure standards and the roadmap.”’,
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