NABO Industry Trends & Issues (Issue No. 81)

 

Published on April 23, 2026
Published by Industry & Energy Analysis Division

 

■ Industry Trends
   In recent months, the Korean economy has shown modest improvement thanks to robust exports and increasing demand in the service sector, while downside risks have also grown with an increase in energy and raw material prices following the outbreak of the war in the Middle East. In February 2026, overall industrial production grew by only 0.5%; this is because services and construction increased by 2.1% and 1.2% YoY, respectively, while manufacturing production fell by 1.8% YoY due to a reduction in the number of working days (by three days) during the Lunar New Year holiday. Exports across Korea's 13 key sectors totaled USD 54.65 billion in February and USD 70.32 billion in March, representing a YoY increase of 36.4% and 55.0%, respectively, driven by surging demand for memory chips and SSDs associated with increased investments in AI servers. In March, oil prices jumped by 35.2% YoY to USD 95.6 per barrel due to reduced production following the war in the Middle East and limited shipping caused by the blockade of the Strait of Hormuz. Non-ferrous metal prices soared by 23.0% YoY in the same month, reflecting the supply risks following the war, and agricultural commodity prices increased by 5.1% YoY, driven primarily by soybeans and wheat. In February, the volume of KAU24 traded under the national emissions trading scheme declined by 8.9% MoM to 3.472 million tons, and the closing price increased 10.9% MoM to KRW 13,750 per ton.
 

■ Industry Issues: Analysis of ESG Disclosure Status in Korea Following the Introduction of Mandatory Reporting Requirements
   With ESG disclosure emerging as a key component of corporate evaluation amid strict carbon regulations under the Paris Agreement, Korea released its ESG disclosure standards and roadmap in February 2026 to establish an ESG disclosure framework meeting global standards (to be finalized after April 2026). Against this backdrop, this report explores the current status of ESG disclosure and its incentive factors using data from 819 KOSPI-listed companies (as of 2025). The analysis finds that the number of companies performing voluntary ESG disclosure increased from 78 in 2021 to 225 (27.5%) in 2025, but the proportions of SMEs (8.7%) and manufacturing firms (22.7%) were below the average (27.5%), indicating polarization across firm size and sector. A stepwise logistic regression analysis identifies asset size, the scale of investment by the National Pension Service, and whether a firm is subject to the ETS (Emissions Trading System) as key determinants of ESG disclosure. Among companies subject to mandatory disclosure in FY2027 (i.e., 59 companies with consolidated assets of KRW 30 trillion or more), 85% have already begun ESG reporting, but they are largely concentrated in the financial and insurance sectors. Notably, 70 manufacturing firms that are subject to the CBAM but have assets below KRW 30 trillion fall into a regulatory blind spot, as they are exposed to transition risks without being subject to mandatory reporting. To ensure the successful settlement of the ESG disclosure framework, the government is advised to take a multi-faceted approach including establishing a legislative foundation through amendments to the Capital Markets Act and enacting diverse policy measures, such as accounting infrastructure for Scope 3 emissions measurement for SMEs, new safe harbor regulations, and policy incentives.