Korea Expands Corporate Governance Disclosure to All KOSPI Firms Starting 2026

Key Takeaways

• Expanded Disclosure Requirement: All KOSPI-listed firms will be required to submit corporate governance reports starting in 2026, expanding from the current threshold of firms with assets over KRW 500 billion.
• Increased Coverage: The number of firms subject to mandatory disclosure will grow from 541 to 842, based on end-2024 figures.
• "Comply or Explain" Approach: Companies must either comply with key governance principles or explain their non-compliance, reinforcing transparency and accountability.
• Support for Transition: The KRX and Korea Listed Companies Association will offer guidance, training, and consultations to help firms prepare.
• Governance and Transparency Goals: The policy aims to foster stronger corporate governance practices and improve overall transparency in the Korean market.

Deep Dive

South Korea’s Financial Services Commission (FSC) recently announced that all companies listed on the Korea Composite Stock Price Index (KOSPI) will be required to submit corporate governance reports starting in 2026.

The change follows a partial revision to the Korea Exchange (KRX) disclosure rules, approved during the FSC’s 13th regular meeting on July 9, and marks the next phase in the country’s adoption of a “comply or explain” approach to governance transparency.

Until now, only KOSPI-listed companies with total assets of KRW 500 billion (approximately USD 360 million) or more were required to submit such reports—541 firms in total as of the end of 2024. The revision will expand the mandate to all 842 KOSPI-listed companies, regardless of size, based on end-2024 figures.

Introduced in 2017 as a voluntary initiative, the governance report disclosure regime has gradually evolved into a mandatory obligation for large-cap firms. The reports offer insight into each company’s compliance with key governance principles, and the FSC expects this broader mandate to encourage more firms to proactively enhance governance structures while increasing overall transparency in Korea’s corporate sector.

To support companies during the transition, the KRX and the Korea Listed Companies Association will roll out a suite of resources, including tailored guidance, one-on-one consultations, compliance training for executives, and regional workshops.

The FSC emphasized its commitment to a smooth implementation of the expanded reporting requirements, signaling continued collaboration with KRX and other relevant organizations to help companies adapt effectively.

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