KSSB Sustainability Disclosure Standards

KSSB Sustainability Disclosure Standards: phased mandatory ifrs s1/s2-aligned governance, strategy, risk and scope 1 and 2 emissions disclosure for large kospi companies.

Jurisdiction
Status
pending
Category
First deadline
FY2026 first mandatory reporting year for large KOSPI companies (Phase 1)
Who must comply
Phase 1 (FY2026) covers KOSPI-listed companies with assets of at least KRW 2 trillion (roughly the top 100 firms). Phase 2 (FY2028) adds mid-cap KOSPI companies and Phase 3 (FY2030) covers all KOSPI-listed companies. KOSDAQ companies and SMEs are voluntary.
Penalties
Fines from the Financial Services Commission, KRX listing-rule violations that can trigger public censure or suspension, environmental fines from the Ministry of Environment for false or omitted emissions reporting, and investor and reputational risk for non-filers.

What it is

The KSSB Sustainability Disclosure Standards are South Korea's sustainability reporting standards, regulated by the Financial Services Commission (FSC) and the Korea Exchange (KRX), replicating IFRS S1 and S2 with an optional domestic annex (Standard No. 101) for Korea-specific themes.

They introduce phased, climate-focused disclosure obligations aligned with Korea's 2050 net-zero commitment, rolling out by company size and listing category.

Who must comply

Phase 1 (FY2026) applies to KOSPI-listed companies with assets of at least KRW 2 trillion, approximately the top 100 firms. Mid-cap KOSPI companies enter in Phase 2 (FY2028) and all KOSPI-listed companies in Phase 3 (FY2030), while KOSDAQ companies and SMEs report voluntarily.

What you must disclose

Entities must disclose governance and oversight of sustainability, strategy and climate-related scenario analysis, risk management processes, and metrics and targets including Scope 1 and 2 GHG emissions. Board-level approval of climate disclosures is required, filings are submitted via FSS DART, and transition plans must be provided where net-zero targets are claimed.

Timeline

Introduced in April 2024 with Exposure Drafts No. 1 and 2, with final standards expected in Q4 2024.

Voluntary early adoption pilots run in 2025. Phase 1 mandatory reporting for large KOSPI companies begins FY2026, Phase 2 adds mid-cap issuers from FY2028, and Phase 3 reaches full KOSPI coverage by FY2030. Mandatory assurance is anticipated around FY2028 or later.

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