Soft landing for SMEs with South Korea’s phased XBRL rollout
The Financial Supervisory Service (FSS) of South Korea announced on 7 April a comprehensive “soft landing” plan to support small and medium-sized listed companies as they begin submitting XBRL annotated financial disclosures. With over 1,800 firms set to adopt the standard, the FSS aims to minimise disruption and ensure a smooth transition to digital reporting.
Starting with semi-annual reports in 2025, companies with assets under 500 billion Korean won will use XBRL annotations selectively—focusing initially on business and semi-annual reports. Quarterly disclosures will use simpler ‘block tagging’ until 2028, after which full detailed XBRL tagging will be required. Submission deadlines will be phased based on asset size, ranging from March 2026 to March 2028.
This move builds on international XBRL standards, bringing South Korea in line with global momentum for digital reporting. The FSS will provide training, feedback through pilot submissions, and robust quality checks, reinforcing confidence in the transition.
The careful, phased approach is exemplary in supporting high-quality implementation. It balances rigour with support. Expanding the use of XBRL in Korea is expected to boost global investor confidence and improve market transparency—key steps towards addressing the so-called ‘Korea discount’, where the country’s stock market has historically traded at lower valuations than its global peers.
To learn more, read the announcement here.
