Corporate Information Disclosure for Sustainable Financial Investment: Challenges and Contradictions in Reporting the ‘S’ in ESG in South Korea

Demand for corporate sustainability information disclosure is surging, driven by growing expectations from investors, regulators, and the public. Stakeholders seek such information for three key reasons: to mitigate financial and reputational risks stemming from unethical corporate conduct; to leverage economic opportunities arising from the evolving global economy; and to promote socio-environmental sustainability. We investigate ESG (Environmental, Social, and Governance) information disclosure and reporting practices among South Korea’s largest publicly traded companies from 2018 to 2023. We focus on corporate reporting on employment practices within the ‘S’ pillar of the ESG framework. Through a simultaneous convergent mixed methods research design combining quantitative analysis of disclosed data with qualitative insights from corporate stakeholders, we highlight significant challenges and contradictions in ESG reporting within an East Asian context. These stem from regulatory ambiguities, socio-political and cultural barriers, and the absence of standardized and reliable disclosure frameworks. Our research proposes a contextualized ESG disclosure framework that integrates local cultural and regulatory norms with global sustainability standards. This not only advances theoretical understanding of ESG reporting in non-Western contexts but provides practical guidance for firms seeking to enhance transparency, meet investor expectations, and drive corporate sustainability.