[2021 Future Business Forum] Kim Yongjin "National Pension Service Applies ESG Integration Strategy to Direct Investments This Year"

Kim Yong-jin, Chairman of the National Pension Service, is delivering a keynote speech at the '2021 Asia Future Business Forum' hosted by Asia Economy on the 29th at the Western Chosun Hotel in Jung-gu, Seoul. Asia Economy set the theme of this year's Future Business Forum as 'Korean-style ESG Solutions in the New Normal Era' and prepared a session to contemplate ways to enhance the value of our companies through expert lectures in the ESG field. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporters Changhwan Lee, Dongwoo Lee] "We will create a Korean-style ESG (Environmental, Social, Governance) index to foster a sound and transparent economic ecosystem."

The government announced that it will establish a Korean-style ESG index by next year and ensure it can be used in government policies and corporate management. The National Pension Service stated that it will apply an ESG integration strategy to direct investments this year.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said at the ‘2021 Asia Future Enterprise Forum’ held on the 29th at the Westin Chosun Hotel in Sogong-dong, Seoul, "The introduction of ESG is essential, and to minimize the potential burden on our companies during the transition of management policies, we will complete the Korean-style ESG index, K-ESG, by next year." The theme of the forum was ‘Korean-style ESG Solutions in the New Normal Era.’

Deputy Prime Minister Hong emphasized, "To accelerate the green transition of our economy, we will prepare a mid- to long-term carbon emission reduction scenario within the first half of the year and establish sector-specific carbon neutrality promotion strategies for industries such as manufacturing and transportation within this year."

The National Pension Service also announced plans to significantly expand responsible investments considering ESG factors in the future.

Kim Yong-jin, Chairman of the National Pension Service, who delivered the keynote speech that day, said, "Last year, we already applied an ESG integration strategy to direct investments, which account for half of our domestic equity investment assets. This year, we will expand this to direct investments in domestic and foreign equities and bonds, and in the future, we plan to apply it to overseas equities and bonds, including entrusted investments."

Chairman Kim predicted, "By 2022, the asset classes considering ESG responsible investments will account for more than 50% of the total managed assets."

He added, "Now, even a single failure regarding social value can determine the survival and future of private companies. I am confident that new approaches to ESG’s social and public values will change the world."

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