[JIPYONG LLC] Korea Legal Insight (February 2, 2026)

KOREA LEGAL INSIGHT
The Transition of Korea’s ESG Regulatory Framework from Guidance to Enforcement: What Global Businesses Should Watch for in 2026
February 2, 2026

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.

1.	Delayed Sustainability Disclosure
2.	Environmental and Climate Disclosure as an Early Focus of Regulatory Scrutiny
3.	Legislative Momentum Toward Mandatory Human Rights and Environmental Due Diligence
4.	Business Reality: Limited Readiness, Increasing Liability
5.	Implications for Foreign Companies Operating in Korea
6.	ESG as a Legal Risk Function in Korea

Andrew J. PARK

Jong Yun KIM

Justin Taesuh KIM

KLI Editors

Jinhee KIM

Andrew J. PARK

Sanghee LEE

Seungmin LEE

26F, Grand Central A, 14 Sejong-daero, Jung-gu, Seoul T. +82-2-6200-1600 E. master@jipyong.com

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