LG Electronics Establishes Low-Interest ESG Fund for Partners

100 Billion Scale... Utilization Including Carbon Reduction by Partner Companies

LG Electronics announced on the 11th that it has newly established an ESG fund worth 100 billion KRW to support ESG (Environmental, Social, and Governance) management activities such as carbon reduction for its partners.

Partners can use the ESG fund to procure the necessary funds for ESG management activities at low interest rates, thereby reducing their financial burden.

Partners will utilize the fund for greenhouse gas reduction activities such as carbon reduction and low-carbon related new technologies, renewable energy transition, and investment in energy-saving facilities. Through this, they can proactively respond to ESG-related regulations that are recently being strengthened, especially by the European Union (EU).

Since 2010, LG Electronics has operated a 200 billion KRW Win-Win Cooperation Fund created with deposits and contributions in collaboration with commercial banks, supporting low-interest loans for partners. In particular, this year, the interest rate reduction rate has been increased more than twice compared to last year.

LG Electronics headquarters in Yeouido, Yeongdeungpo-gu, Seoul. [Photo by LG Electronics]

LG Electronics provides ESG-related support to partners including ▲ ESG education and certification audit support ▲ carbon reduction consulting ▲ carbon emission surveys. In May, it held win-win growth and ESG education sessions for 150 partner representatives at the Pyeongtaek LG Digital Park and Changwon LG Smart Park in cooperation with the Win-Win Growth Committee. Starting this year, ESG risk inspection activities have been expanded to third-tier partners. Previously, these activities were limited to first- and second-tier partners only.

LG Electronics also focuses on strengthening the manufacturing competitiveness of its partners. Since 2019, it has jointly established funds with the Ministry of SMEs and Startups to support smart factory construction and consulting for about 200 partners until last year. In the second half of this year, it plans to sign a re-agreement for the smart factory construction project for partners. After the re-agreement, it will support about 50 first- and second-tier partners annually with a total of 12.5 billion KRW until 2027. The plan is to strengthen partners’ manufacturing competitiveness through smart factory construction activities such as automation equipment within workplaces and system informatization linkage.

Wang Cheol-min, Executive Vice President and Head of LG Electronics Global Operations Center, said, "We will actively support our partners to secure competitiveness through ESG financial support and smart factory construction projects."

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