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  • Framework Act on Environmental, Social, and Governance to Support the Sustainable Management of Enterprises, etc.
    • Competent Ministry : Ministry of Economy and Finance
    • Advance Publication of Legislation : 2023-11-23
    • Opinion Submission Deadline : 2023-12-07
Reasons for Proposal

Reasons for Proposal and Major Provisions

There is a pressing need for national efforts to ensure sustainable international competitiveness amid the accelerating climate change and economic crisis and pressures to tighten financial system regulations based on Environmental, Social, and Governance (ESG) spearheaded by leading nations.

Our country is highly reliant on exports and the various forms of ESG regulatory pressure that are becoming standardized by law in the EU and other parts of international society pose a major threat to the Korean economy.

In this situation, ESG management is a mid- to long-term risk hedge at a corporate, institutional, and government level, and a national task for addressing the threats of ESG regulations and strengthening the competitiveness of the Korean economy.

Although large domestic enterprises have made some preparations for global regulations associated with ESG management, small to medium and middle-standing enterprises are not adequately prepared.

Given these circumstances, there is a need for institutional support to respond to changes in the world economy by facilitating the sustainable management of enterprises, etc. for a sustainable society, and thereby establish ESG management and investment and achieve a sustainable economy.

Accordingly, this Act prescribes grounds for national policies to respond to ESG legislations and strengthen national competitiveness with a focus on exports by supporting small to medium and middle-standing enterprises, and to establish a control tower to improve the consistency and efficiency of ESG administration carried out by various central administrative agencies and local governments, thereby allowing various economic and social entities to internalize and develop ESG.

Major Provisions

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