Value context and insight. lkm@koreatimes.co.kr
Listed firms oppose ESG info disclosure
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By Lee Kyung-min
By Lee Kyung-min
The Korea Listed Companies Association said that its members have opposed mandatory disclosure of corporate information on environmental, social and corporate governance (ESG) values.
It say making disclosure of ESG a legal requirement of disclosure will unnecessarily increase costs.
It also recommended such disclosures be put off until after doing so becomes standard practice.
Currently, firms can include ESG information in ESG reports, and there is no punishment if they do not. Firms with assets of over 2 trillion won ($1.7 billion) will be required to disclose ESG information starting in 2025. All listed firms will have to do this from 2030.
The members say mandating these disclosures will lead to decreased corporate competitiveness on the global stage.
The association said Korea should instead look to the U.S. and monitor how the same issue shapes that country's commercial law.
Korea lacks the motive to push for the mandate, whereas the United Kingdom, France and Hong Kong want to speed up the mandate because they are in competition to become the next financial hub. Korea is not.
The association members want the mandatory implementation delayed, to keep the amount of information disclosed to a minimum and deny repetitive inquiries.
The sales of listed companies exceeded 1,000 trillion won in the first six months of this year for the first time.
Operating profit and net profit increased significantly due to the strong growth of large firms. The global market recovery helped industries that need raw materials.
The consolidated financial statements of 587 companies showed their sales in the January-June period stood at 1,080.5 trillion won, rising by 17.4 percent or 160 trillion won from a year earlier. The six-month period figure surpassed the 1,000 trillion won mark for the first time.
Operating profit increased 118.8 percent or 49.4 trillion won to 91.3 trillion won. Net profit soared to 85.1 percent, up 245.5 percent. This is the highest six-month performance recorded ever, as related statistics have been published since 2005.