Ban Ki-moon "ESG, an Essential Survival Strategy for Small and Medium-sized Enterprise Management"

Former President Ban Jeon to Deliver Keynote at 'Baekdu Forum' on 13th
"ESG is for Future Survival... Regulatory Easing Needed"
Kim Ki-moon: "Environmental Regulations Require Speed Adjustment and Support Measures"

Former UN Secretary-General Ban Ki-moon. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] "ESG (Environment, Social, Governance) is an indispensable survival strategy for small and medium-sized enterprise (SME) management."

Former UN Secretary-General Ban Ki-moon stated this on the morning of the 13th at the 2021 Baekdu Forum hosted by the Korea Federation of SMEs, held at Lahan Select Gyeongju.

In his keynote speech titled "ESG Management and SME Response Strategies," Ban diagnosed the realities and difficulties faced by SMEs, sharing insights on ESG management and directions for SMEs to respond.

He emphasized, "If companies do not implement ESG management, no matter how much revenue they generate, they will not be recognized in domestic or overseas markets. It is not a matter of choice but a necessity for future survival."

He also advised, "Compared to large corporations, SMEs face relatively greater challenges in terms of capital and manpower, so focusing on areas where they can excel is one approach," adding, "To facilitate creative destruction for ESG management, regulatory relaxation is necessary."

◆Carbon Neutrality Focus... Seeking Survival Strategies for SMEs = This forum was held under the theme "Global Environmental Changes and Survival Strategies for SMEs." It was organized to explore response strategies for SMEs amid rapidly changing trade environments and increasing uncertainties in management environments due to climate change and carbon neutrality.

Marking its 12th year, the Baekdu Forum is a global forum for SME representatives and has been held overseas in countries with significant SME presence such as China, Vietnam, and Indonesia. Due to COVID-19, it was held domestically last year and this year.

The opening ceremony of the forum was attended by SME representatives from various industries, former Secretary-General Ban Ki-moon, Gyeongsangbuk-do Governor Lee Cheol-woo, National Assembly member Kim Seok-ki, and Gyeongju Mayor Joo Nak-young.

Following this, experts in related fields held a policy discussion on "Global Environmental Changes and Survival Strategies for SMEs."

◆Kim Ki-moon: "Polarization Between Large and Small-Medium Enterprises Must Be Resolved" = Kim Ki-moon, Chairman of the Korea Federation of SMEs, stated in his opening remarks, "This forum was prepared to devise ways for companies to wisely respond amid significant changes."

Chairman Kim noted that SMEs are increasingly concerned following the passage of the "Carbon Neutrality Basic Act" by the National Assembly on the 31st of last month. He added, "Global companies have ceased transactions with firms that hinder achieving carbon neutrality targets, and the US and EU are also pushing for the introduction of carbon border taxes on high-carbon imports."

He urged the government to "adjust the implementation speed and prepare appropriate support measures so that rapidly strengthening environmental regulations do not impose excessive burdens on SMEs."

Chairman Kim has recently requested presidential candidates from both ruling and opposition parties visiting the Federation to include policy pledges aimed at resolving the polarization between large and small-medium enterprises.

He said, "The monopolization of profits by large corporations reduces SMEs' capacity for investment and wage payments, leading to job losses and hindering the growth of the Korean economy," and pledged, "We will do our best to ensure that the policy pledges desired by SMEs are actively reflected in the 20th presidential election."

Meanwhile, Gyeongju City, where the event was held, is currently implementing social distancing at level 3. To prevent and contain COVID-19, the forum was conducted in compliance with quarantine guidelines including temperature checks, health questionnaires, and disinfection during the event period.

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