Discussion of “Environmental, Social, and Governance (ESG) in Accounting and Capital Markets: A Literature Review on Economic Relevance, Disclosure Frictions, and Valuation Implications

Yoon (2025) provides a comprehensive literature review on environmental, social, and governance (ESG) in accounting and capital markets, with a primary focus on studies from developed economies. Recognizing that institutional, regulatory, and capital market environments differ substantially across countries, we complement Yoon (2025) by reviewing ESG studies on Korean firms, which remain underrepresented in the original review. We categorize the literature into five areas: (1) the effect of ESG performance on firm outcomes, (2) the external and internal drivers of ESG performance, (3) ESG disclosure practices—including carbon disclosure, (4) individual ESG dimensions, particularly environmental and social aspects, and (5) extended topics such as ESG committees, ESG-related news, and ESG-related financial instruments. By synthesizing findings from the Korean capital market, this discussion provides a structured foundation for future research on the ESG practices of Korean firms and offers a reference framework for scholars examining ESG issues in other late adopters or transitional markets.