Current Status of ESG Disclosure Systems and Corporate Law Challenges

As ESG management becomes increasingly prevalent worldwide, the importance of information disclosure has grown significantly. The establishment of global ESG disclosure standards, such as those set by ISSB, CSRD, and SEC, has presented corporations with the challenge of adapting to new disclosure systems. Even though Korea has introduced KSSB disclosure standards, businesses continue to face difficulties due to the complexity and uncertainty of these standards. This study delves into the corporate governance challenges faced by companies in this context and examines the impact of ESG disclosure standards on corporate governance structures. It argues that a paradigm shift from shareholder primacy to stakeholder capitalism, and further towards eco-centric management, is necessary. This shift will fundamentally alter corporate objectives and directorial responsibilities. The key points addressed in this study include: an overview of the development of global ESG disclosure standards and an analysis of domestic standards; a discussion of the impact of ESG management on corporate objectives and directorial responsibilities, emphasizing the need for a paradigm shift from shareholder primacy to stakeholder capitalism and eco-centric management; an examination of corporate law issues arising from the establishment of ESG disclosure standards, and the proposal of solutions for companies to effectively address these challenges; and a highlight of the government's role in ensuring the successful implementation of ESG disclosure systems, emphasizing the need for government-led support systems.