Prime Contractors and Partner Companies as One Team... Busan Chamber of Commerce Promotes ESG Win-Win Management Support Project

The Busan Chamber of Commerce and Industry and Busan City are recruiting companies to participate in the ‘2023 Busan Companies ESG Win-Win Management Support Project.’

On the 21st, the Busan Chamber of Commerce announced the launch of the ‘2023 Busan Companies ESG Win-Win Management Support Project’ and the recruitment of participating companies in cooperation with Busan City to expand ESG management among Busan companies.

This project, newly initiated this year by the Busan Chamber of Commerce and Busan City, is based on a win-win model between prime contractors and partner companies to support proactive responses and the creation of new business opportunities for Busan companies in line with the rapidly spreading ESG management trend.

The ESG Win-Win Management Support Project model is divided into two types: ▲‘Prime Contractor-Partner Company Win-Win Cooperation Model’ and ▲‘SME ESG Expansion Support Model.’

First, the ‘Prime Contractor-Partner Company Win-Win Cooperation Model,’ which supports supply chain management, an essential element of ESG management, involves the joint participation of 5 prime contractors and 25 partner companies.

Prime contractors receive up to 40 million KRW per company (80% of project costs supported) for expenses such as sustainable management report preparation and in-depth ESG consulting, while partner companies receive full support of 3 million KRW for in-depth ESG diagnosis costs.

Unlike existing ESG support projects, which had limitations in spreading across the industry due to individual SMEs participating independently, the ESG Win-Win Management Support Project promoted by the Busan Chamber of Commerce and Busan City features joint participation of prime contractors and partner companies.

Prime contractors can manage the supply chain of partner companies and also participate in the ESG supply chains of global companies, while partner companies can enhance their ESG capabilities under the support of prime contractors and gain opportunities to enter new markets, distinguishing this project from existing support programs.

Busan Chamber of Commerce and Industry.

The ‘SME ESG Expansion Support Model’ provides up to 3 million KRW to cover consulting costs for deriving initial improvement measures in ESG management, including ESG evaluation index composition, diagnostic evaluation, and on-site inspection.

In the future, the Busan Chamber of Commerce and Busan City plan to hold an ‘ESG Management Forum’ in the second half of the year to find ways to increase joint participation rates between prime contractors and partner companies. They will also operate an ‘ESG Management Support Council’ for efficient support of companies.

Kang Sung-woo, Head of the Member Business Division at the Busan Chamber of Commerce, said, “For the ESG management wave to spread throughout the Busan region, a business model where prime contractors take the lead in embracing partner companies and coexisting is the most exemplary.”

He added, “Since the Busan Chamber of Commerce and Busan City empathize with this purpose and are promoting the ESG management expansion project based on this model for the first time nationwide, the adoption of ESG management by local companies is expected to accelerate.”

Companies wishing to receive detailed information about participating in the project can contact the Member Business Division of the Busan Chamber of Commerce and Industry.

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