[2021 Public Institution Awards] "Focus on Sustainability Rather Than ESG Evaluation Scores"

Lecture - Professor Kim Jong-dae, Department of Business Administration, Inha University · Professor Lee Won-hee, Department of Public Administration, Hankyong National University

Professor Kim Jong-dae, Chair of the Graduate School of Green Finance at Inha University, is giving a lecture on "ESG, the Role of Public Institutions and the Private Sector" at the "2021 Asia Economy ESG Public Institution Awards Ceremony" held on the 30th at the Press Center in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kwon Haeyoung] "Rather than overreacting to ESG (Environmental, Social, and Governance) evaluation scores, the focus should be on enhancing sustainable performance."

Professor Kim Jongdae of Inha University’s Department of Business Administration (Director of the ESG Center at the Institute for Sustainable Management) stated at a lecture on the 30th at the Korea Press Center in Jung-gu, Seoul, during the ‘2021 Asia Economy ESG Public Institution Awards,’ "What increases corporate value is not the ESG evaluation score but ‘sustainability,’ and based on this value, public institutions can lead ESG management."

He added, "Public institutions have a role to protect the assets of the people since they exercise assets and rights entrusted by the public," and said, "The government and public institutions should focus on their fundamental roles of creating public interest and complementing the market, and engage in efficient regulation and strategic support to strengthen the competitiveness of the private sector."

There was also an opinion that the government should continuously monitor the ESG management activities of public institutions through the management evaluation system. Professor Lee Wonhee of Hankyong National University’s Department of Public Administration, in a lecture titled ‘Service Value and Management Evaluation of Public Institutions,’ said, "While previous administrations focused on normalization measures such as reducing public institution debt and eradicating wasteful management, the current administration emphasizes the social responsibility and value of public institutions," adding, "By reflecting related indicators in government management evaluations, it is possible to assess the strengthening of systems for realizing social value in the public sector and support for the spread of social value in the private sector." He explained, "It is necessary to alleviate economic performance and quality of life disparities and strengthen conditions for sustainable corporate growth through the expansion of social value in both public and private sectors."

There was also criticism that companies, including public institutions, should not approach ESG management solely from the perspective of ‘risk management.’ Professor Kim Jongdae emphasized, "If ESG management is regarded only as a risk management tool, it will pose a serious threat to future sustainable growth," and stressed, "It is necessary to actively develop products, services, business models, and platforms utilizing Environment (E) and Social (S) factors."

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