"Large Corporations Must Expand ESG Management Cases... Multilateral Partnerships Needed"

Autumn Conference of the Venture Innovation Society on the 17th
Keynote Lecture on Corporate ESG Management Directions
Professor Moon Du-cheol: "SMEs Lack ESG Capacity"

On the 17th, at the Korea Venture Innovation Society Autumn Academic Conference held at the Federation of Korean Industries building in Yeouido, Seoul, with the theme "ESG Management of Small and Medium Venture Innovative Companies," key guests and speakers, including Jeong Un-chan, Chairman of the Win-Win Growth Research Institute (fifth from the left), and Lee Ui-cheol, CEO of Asia Economy (third from the left), are taking a commemorative photo. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Kim Bo-kyung] There is a claim that large corporations and economic organizations need to spread best practices and provide educational opportunities to help small and medium-sized enterprises (SMEs) secure ESG (Environmental, Social, and Governance) management capabilities.

Professor Moon Du-cheol of Yonsei University (incoming president of the Korean Society of Small Business Studies) delivered a keynote speech at the Korean Venture Innovation Society's autumn academic conference held on the 17th at the Federation of Korean Industries building in Yeouido, Seoul.

In his lecture titled "How Should Companies Conduct ESG Management?", Professor Moon emphasized the necessity of participating in multilateral ESG partnerships.

He stated that companies with limited human and material resources should seek partnerships for common goals and priorities rather than implementing ESG independently.

Jeon In-o, President of the Korea Venture Innovation Society, is delivering a welcome speech at the Korea Venture Innovation Society Autumn Academic Conference held on the 17th at the Federation of Korean Industries building in Yeouido, Seoul, on the theme of "ESG Management of Small and Medium Venture Innovation Companies." Photo by Kim Hyun-min kimhyun81@

According to the "SME ESG Difficulty Survey" recently conducted by the Korea Federation of SMEs targeting 300 SMEs, 9 out of 10 SMEs (89.4%) responded that they are not prepared for ESG management.

Professor Moon expressed concern, saying, "SMEs, which cannot afford to establish dedicated ESG organizations due to lack of funds and personnel, are in a difficult situation. Even if large corporations or upper-tier companies in the supply chain declare ESG strengthening, if the ESG management of partner companies is not realized, the effectiveness will inevitably decline."

He emphasized, "To urgently secure ESG management capabilities for SMEs, large corporations and economic organizations need to spread best practices and provide educational opportunities."

In this regard, the government plans to amend the Enforcement Rules of the Restriction of Special Taxation Act next year to provide tax reductions of up to 2% for expenses or labor costs incurred by large corporations for ESG education of partner companies, with tax credit benefits of 8% for mid-sized companies and 25% for SMEs.

Professor Moon stated that a change in the perception of CEOs regarding ESG management is necessary to enhance corporate sustainability, and that ESG activities reflecting the expectations and demands of stakeholders, including multinational corporations intertwined through supply chains, must be carried out.

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