KOTRA Takes Initiative to Strengthen ESG Capabilities of Exporting Small and Medium Enterprises

Participation in the Ministry of Trade, Industry and Energy-led 'Export SME and Mid-sized Enterprise ESG Support Council'

[Asia Economy Reporter Lee Hyeyoung] KOTRA is strengthening support for acquiring ESG (Environmental, Social, and Governance) capabilities for small and medium-sized enterprises (SMEs) and mid-sized companies.

On the 1st, KOTRA announced the launch of the 'Export SME and Mid-sized Company ESG Support Council' in collaboration with the Ministry of Trade, Industry and Energy, the Korea Trade Insurance Corporation, and the Korea Productivity Center. The support council is part of a pilot project to manage ESG risks in the supply chains of global export companies and to respond to the spread of supply chain due diligence systems by country.

The five organizations participating in the support council plan to cooperate to △ secure new export momentum by fostering excellent ESG export companies to achieve the 'fastest attainment of $1 trillion in trade' and △ minimize uncertainties for companies entering global supply chains.

Starting in 2022, a private evaluation team will be formed to provide evaluation experience to export companies wishing to undergo mock assessments, and companies demonstrating continuous performance will be offered incentives such as preferential treatment in export-related marketing, exhibitions, and export insurance.

Meanwhile, the government held a sustainable management commendation ceremony on the same day, awarding a total of 25 companies excelling in ESG management. Alongside this, the 'K-ESG Guideline,' a key task in expanding ESG infrastructure projects, was also announced. The K-ESG Guideline is designed to be autonomously utilized by domestic ESG evaluation agencies. From next year, guidelines will also be prepared by industry and company size.

Yoo Jung-yeol, President of KOTRA, said, “We will actively cooperate with the participating organizations of the support council to help export SMEs and mid-sized companies respond timely to global ESG policies and regulations, and we will also strengthen support projects so that domestic ESG management companies can find opportunities in the global market.”

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