KCCI: "The First Step in ESG Management for SMEs is 'Social Responsibility'"

KCCI to Host 3rd 'ESG Management Forum' on 24th
Discussing the Necessity and Strategies of ESG Management for SMEs

The Ceremony for Commerce and Industry Day was held on the 31st at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Hwang Yoon-joo] The Korea Chamber of Commerce and Industry (KCCI) announced that it held the "3rd KCCI ESG Management Forum" on the 24th in collaboration with the Ministry of Trade, Industry and Energy to discuss the necessity and strategies of ESG (Environmental, Social, and Governance) management for small and medium-sized enterprises (SMEs).

The "KCCI ESG Management Forum" was established to strengthen the domestic industry's capacity to respond to ESG, which has become a global issue across economic, managerial, and social sectors, and to discuss risk management and policy support methods related to ESG.

The 3rd forum was attended by 15 participants including Woo Tae-hee, Executive Vice Chairman of KCCI; Hwang Soo-sung, Director of Industrial Policy at the Ministry of Trade, Industry and Energy; Lee Hyung-hee, Chairman of SK SV Committee; Jo Bong-hyun, Vice President and Head of Economic Research Institute at IBK; as well as representatives from law firms, financial institutions, consulting firms, SMEs, and experts.

Urgent Need to Strengthen ESG Capabilities of SMEs... Focus on 'S' in ESG and Start with Compliance Management

The first presentation was delivered by Lee Kwang-wook, a lawyer at the law firm Hwawoo, on the topic of "ESG Strategy and Compliance Management for SMEs."

Lawyer Lee emphasized, "According to expert surveys on the level of ESG response among domestic companies, using 10 points as the benchmark for advanced countries, large enterprises scored 7 points, mid-sized companies 5 points, and SMEs only 4 points," adding, "Since SMEs have limited resources and capabilities, selection and concentration are necessary."

He continued, "Compared to E (Environment), which involves high cost burdens, or G (Governance), which is influenced by individual company characteristics, it is advantageous to focus on S (Social responsibility), which is relatively less burdensome to implement," and explained, "Since 'social responsibility management' is specified under the Small and Medium Enterprise Promotion Act, future SME ESG regulations or guidelines are likely to consider social responsibility as an important factor."

The second presenter, Jo Yong-beom, Head of ESG Planning at KB Kookmin Bank, presented on "ESG Management and SME Finance," sharing KB Kookmin Bank's ESG management initiatives along with plans to introduce ESG financial products and services for SMEs.

Since signing the UNEP FI (United Nations Environment Programme Finance Initiative) Principles for Responsible Banking in September 2019, KB Kookmin Bank has supported companies' ESG management by issuing ESG bonds and offering preferential interest rates to SMEs excelling in ESG activities.

Woo Tae-hee, Executive Vice Chairman of the Korea Chamber of Commerce and Industry (third from the left in the front row), Lee Hyung-hee, Chairman of the SK SV Committee (fourth from the left in the front row), and Hwang Soo-sung, Director of Industrial Policy at the Ministry of Trade, Industry and Energy (second from the left in the front row), are taking a commemorative photo with participants after the 3rd ESG Management Forum on the 24th. Photo by Korea Chamber of Commerce and Industry

EU and Others Begin Full-Scale Supply Chain ESG Regulations... Need to Strengthen ESG Capabilities Across Industry Through Public-Private Cooperation

The final presentation was given by Kim Jung-nam, Executive Director at Samjong KPMG, on the topic of "ESG Management Strategies for SMEs."

Executive Director Kim stated, "Recently, discussions on supply chain ESG regulations have intensified in the EU, and pressures from exports and client companies are increasing," adding, "SMEs are still inadequately prepared, so large enterprises, economic organizations, industry associations, and the government must cooperate to strengthen the overall ESG response capabilities of our industry."

During the subsequent open discussion, participants agreed on the necessity of ESG management for SMEs and explored ways to enhance SMEs' ESG response capabilities.

Woo Tae-hee, Executive Vice Chairman of KCCI, who presided over the meeting, said, "If large enterprises support SMEs' ESG management focusing on supply chains, it will enhance SMEs' ESG capabilities and reduce ESG risks for large enterprises," and added, "The Chamber of Commerce and Industry plans to prepare and provide SME ESG support programs such as education and consulting."

Hwang Soo-sung, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, stated, "We plan to establish the K-ESG guidelines to promote and guide ESG management among domestic SMEs," and said, "We will strive to prepare support measures such as 'network formation support and capacity-building programs' to strengthen ESG cooperation between large and small-medium enterprises."

The contents presented on this day will be available on the Korea Chamber of Commerce and Industry website starting May 31.

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