[2022 Asia ESG Forum] Kim Yongjin, President of the Korean Society for Small and Medium Venture Business Policy, "SME ESG Management Requires Both Voluntary Change and Policy Support"

"Establishing a Systematic Framework for ESG Management Must Come First"

Kim Yong-jin, President of the Korea Small and Medium Business Policy Association, is giving a lecture on the issues and alternatives of ESG management in small and medium enterprises at the 2022 Asia ESG Symposium held on the 4th at the Westin Chosun Hotel in Jung-gu, Seoul. Photo by Moon Ho-nam munonam@

[Asia Economy Reporter Kiho Sung] Kim Yongjin, president of the Korea Small and Medium Venture Business Policy Association, emphasized that the core of ESG (Environmental, Social, and Governance) management changes in small and medium-sized enterprises (SMEs) is that voluntary change must be accompanied by policy support.

At the ‘2022 ESG Symposium’ hosted by Asia Economy on the 4th at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul, President Kim stated, "The reasons for the failure of ESG management in SMEs can be attributed to ▲lack of separation between ownership and management ▲difficulty in long-term planning ▲lack of expertise."

He pointed out that to overcome these challenges, it is essential to ▲establish a digital ESG management system ▲pursue ESG as a growth strategy ▲build an ESG industrial ecosystem.

In particular, regarding the establishment of a digital ESG management system, there is an urgent need to develop a framework for SME digital ESG strategies and service commercialization strategies, as well as to establish and operate a digital ESG control tower. President Kim explained, "To build a digital ESG management system, various policy supports such as infrastructure development, workforce training, and data-driven management are necessary," adding, "Through this, the maximization of private autonomy and capabilities can be achieved."

He also pointed out that pursuing ESG as a growth strategy is important to use ESG management not as pressure but as a new growth engine to pursue industrial innovation. He advised that active innovation should be pursued by utilizing government business transformation and re-leap programs, while operating new talent acquisition programs centered on entrepreneurship.

President Kim emphasized, "ESG management in SMEs can only be possible when voluntary change and policy support are achieved together," adding, "Through this, the development of eco-friendly technologies and products, transition to eco-friendly processes, and social innovation through the commercialization of eco-friendly technologies can be realized."

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