"ESG Risk Management Required with Introduction of Internal Compliance System"

FKCCI-Korea Fair Trade Commission Hold the 5th K-ESG Alliance Meeting

[Asia Economy Reporter Han Yeju] There has been a call to manage ESG risks, including fair trade risks, through the activation of internal compliance system operations that guarantee corporate autonomy.

The Federation of Korean Industries (FKI) held the 5th K-ESG Alliance meeting on the 1st and announced this. The meeting was held under the theme "Expansion of Corporate ESG Management through the Operation of Fair Trade Compliance Programs (CP)," with Yoon Suhyun, Vice Chairman of the Fair Trade Commission, delivering the keynote presentation. The meeting was held for 52 companies and institutions that are members of the K-ESG Alliance.

In his opening remarks, Kim Yoon, Chairman of the K-ESG Alliance, evaluated that despite the increasingly difficult business environment, domestic companies’ ESG management has become more active than last year. In fact, the number of companies voluntarily disclosing ESG management information on the Korea Exchange increased by about 62.8% from 78 companies last year to 127 companies this year (as of November 28).

Chairman Kim cited the "internal compliance system" as one of the major ESG management issues in 2023. He emphasized the importance of compliance, stating, "Going forward, the expansion of autonomous ESG management by companies through the use of internal compliance systems will become even more important."

Kim Junho, ESG Team Leader at the FKI, said, "The introduction of compliance programs is a way for companies to prepare for ESG risks such as fair trade on their own, but careful consideration is needed so that it is not perceived as another ESG regulation." He added, "In addition to existing incentives such as exemption from ex officio investigations, additional measures such as introducing penalty reduction systems based on overseas cases should be considered to encourage voluntary corporate participation."

In the following keynote presentation, Yoon Suhyun, Vice Chairman of the Fair Trade Commission, explained the Fair Trade Compliance Program (CP), an internal compliance system operated independently by companies to comply with fair trade-related laws and regulations.

Vice Chairman Yoon introduced the fair trade education and supervision procedures for corporate executives and employees using CP, emphasizing that they will share and expand best practices of corporate CP operations through CP forums and roundtable meetings. In particular, he stated, "The introduction and operation of CP will act as a positive factor in activating ESG management, which has begun to emerge as an indispensable element for enhancing corporate value," and added, "In future ESG management, the spread of a corporate culture of autonomous legal compliance through the introduction of programs such as the Fair Trade Compliance Program will become even more important."

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