Yoon Seok-heon, Financial Supervisory Service Chief: "ESG is an Important Supervisory Goal"

Congratulatory Address at the Joint Policy Symposium of Three Financial and Economic Societies

[Image source=Yonhap News]

[Asia Economy Reporter Ki Ha-young] Yoon Seok-heon, Governor of the Financial Supervisory Service, emphasized on the 2nd that "ESG (Environment, Social, Governance) is an indispensable element for sustainable growth" and that "ESG is one of the important supervisory goals."

Governor Yoon made these remarks on the 2nd while participating in a policy symposium jointly hosted by three academic societies?the Korean Financial Management Association, the Korean Finance Association, and the Korean Derivatives Society?on the theme of "Current Status and Challenges of the ESG Ecosystem."

In his congratulatory speech, Governor Yoon stated, "In the past, many companies pursued growth-oriented management, treating ESG as unnecessary, which resulted in numerous social problems. Fortunately, recently many countries and institutions have been paying attention to ESG, and domestic companies and financial firms are also recognizing the importance of ESG management."

He also noted that from the Financial Supervisory Service’s perspective, ESG is an important supervisory objective. Governor Yoon said, "Regarding the environment, we plan to actively incorporate climate finance into supervisory tasks in line with government-wide efforts such as '2050 Carbon Neutrality' and the 'Green New Deal.' We will establish an analytical system for precise measurement of climate risks." To this end, the Financial Supervisory Service recently established a dedicated organization for climate finance (Sustainable Finance Team).

Regarding social value, Governor Yoon emphasized, "We plan to strive to expand social finance for social enterprises." He added, "Amid the deepening social polarization caused by COVID-19, social enterprises pursuing social values such as maintaining employment for vulnerable groups can be an excellent foundation for a sustainable economy. We will work to ensure smooth funding supply to social enterprises in the financial sector and enhance the utilization of infrastructure for social enterprises in cooperation with various related organizations."

Regarding governance, he stated that, together with the Financial Services Commission, they will create a foundation for responsible investment by institutional investors to improve corporate governance. Governor Yoon emphasized, "Excellent corporate governance can lead to strengthening corporate competitiveness through rational decision-making and management. This year, we will evaluate the performance of the Stewardship Code, revise any shortcomings, and from next year, gradually expand the scope of issuers required to publish the 'Corporate Governance Report.'"

This content was produced with the assistance of AI translation services.