Cho Du-yeon, an attorney at Kim & Chang law firm's sustainability group, advises South Korean companies to focus on what to disclose, to what extent, and how as mandatory ESG disclosure regulation approaches. Cho stated in an interview with MoneyToday that the critical question for companies is not when ESG disclosure becomes mandatory, but rather establishing standards and verification systems for disclosure content, scope, and expression. South Korea's ESG environment is reaching an inflection point as global ESG regulatory frameworks undergo changes, with institutional and policy shifts toward sustainable economic growth becoming visible.
Cho Recommends Three-Part Framework for ESG Disclosure Decisions
Cho outlined a three-part solution for companies preparing ESG disclosures. First, companies should conduct materiality assessments to identify the most important issues for their operations and determine what to disclose. Second, companies must ensure data systems and internal controls produce reliable numbers that executives can confidently sign off on — what Cho described as "numbers you can put your signature on." Third, companies need governance structures to verify that disclosed figures follow trustworthy procedures and can filter out problematic information when issues arise.
Kim & Chang Attorney Identifies Expressions Companies Should Avoid
Cho identified specific types of language that companies should avoid in ESG disclosures. These include unsupported definitive statements, declarative phrases, and ESG information that does not align with financial disclosures. Cho emphasized that companies bear responsibility for trustworthiness the moment they make public statements through disclosures, investor relations materials, or press releases.
Companies Face Accountability When Making Public Statements
Cho stated that companies must design systems to support their public statements and establish governance structures to monitor whether those systems function properly. According to Cho, companies have shifted their focus from writing more content to considering what they can fully explain and take responsibility for. Questions from companies now frequently address how specific targets should be, whether unfavorable information must be included, and how to align business reports with sustainability reports.
Global Investors Already Require ESG Information as Transaction Conditions
Cho noted that overseas clients and global investors already demand ESG information from partner companies as transaction conditions, regardless of domestic mandatory disclosure requirements. This dynamic has deepened corporate concerns about disclosure scope, expression, and data reliability. Cho warned that unsupported statements become burdens companies must bear later, while companies that establish trustworthy disclosure practices will gain advantageous positions.
ESG Colloquium 2026 Scheduled for July 8 in Seoul
Detailed information on trusted ESG disclosure will be presented at ESG Colloquium 2026. The event is scheduled for July 8 at 1:30-5:10 PM at the Korea Financial Investment Association Bulls Hall in Yeouido, Seoul. The colloquium theme is "Direction of ESG in the Era of Korea Premium." Registration is free for the first 100 applicants through the ESG Colloquium website, with inquiries directed to MoneyToday's securities department at stock@mt.co.kr.
FAQ
What did Cho Du-yeon advise companies to focus on for ESG disclosure preparation?
Cho Du-yeon advised companies to focus on three questions: what to disclose, to what extent to disclose, and how to express disclosures. Cho stated in an interview with MoneyToday that companies should establish standards and verification systems for these three elements rather than focusing solely on when mandatory ESG disclosure regulations take effect.
What types of language should companies avoid in ESG disclosures according to Kim & Chang?
According to Cho Du-yeon of Kim & Chang law firm, companies should avoid unsupported definitive statements, declarative phrases, and ESG information that does not align with financial disclosures. Cho emphasized that companies bear responsibility for trustworthiness when making public statements through any channel including disclosures, investor relations materials, or press releases.
