Junggi Joonganghoe to Incorporate ESG Evaluation Factors in Investments... 360 Billion KRW to be Executed This Year

[Asia Economy Reporter Kim Bo-kyung] The Korea Federation of SMEs announced on the 5th that it will incorporate ESG (Environmental, Social, and Governance) evaluation factors when managing the Yellow Umbrella Mutual Aid Fund.

The Federation of SMEs plans to revise its Investment Policy Statement (IPS) to explicitly state the asset management principle of considering non-financial factors such as ESG alongside financial factors in the investment decision-making process.

This year, the Federation is executing approximately 360 billion KRW in entrusted stock and bond management by reflecting ESG factors for the first time. In particular, it newly established a "Socially Responsible Investment" evaluation item for bond management companies and conducted a pilot direct investment in domestic green bonds.

A representative from the Federation of SMEs stated, "In the future, ESG-related criteria will be applied to sectors beyond bonds when selecting entrusted management companies, and additional investments will be considered based on the performance of ESG entrusted management."

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