For several years, Korea’s ESG framework has largely operated through policy guidance, and so-called obligations were based on a combination of market expectations and a mix of voluntary and sector-specific disclosures.  Mandatory ESG compliance did not exist.  Rather, it was deferred to allow preparation and alignment with international standards.  Recently, however, regulatory, policy, and legislative developments signal that Korea is entering a transition phase from regulatory guidance to a phase-based compliance regime in which ESG compliance is being structurally integrated into enforceable regulatory and governance frameworks.

For global businesses operating in Korea, this means, among other things, a need to develop ESG-related practices and policies for the Korean market and meet the evolving mandatory compliance landscape.  Key areas of attention include climate-related disclosures, prioritized for phased rollout starting 2026, and human rights and environmental due diligence obligations, as they are re-entering the legislative agenda, and regulators are signaling selective but meaningful enforcement.  The result is not merely a single sweeping compliance requirement, but a convergence of regulatory signals that materially change how ESG risk should be assessed, governed, and budgeted.

This article examines how Korea’s ESG framework is shifting from policy guidance to enforceable compliance, and highlights the regulatory, governance, and enforcement developments that will shape compliance risk for global businesses operating in or exposed to Korea as 2026 approaches.