From Financial Firms to SMEs... Financial Supervisory Service Chief Visits Cheongna

Incheon City and Hana Financial Group Sign MOU
Supporting SMEs in Responding to European ESG Regulations

Lee Bok-hyun, the Governor of the Financial Supervisory Service (FSS), who had been emphasizing 'win-win finance' through consecutive visits to various financial companies, recently visited Cheongna International City in Incheon. The plan is to support the exports and ESG (Environmental, Social, and Governance) management of small and medium-sized enterprises (SMEs) by collaborating with local governments and financial holding companies.

On the 10th, the FSS signed a 'Business Agreement for Supporting ESG Management of SMEs' together with Incheon Metropolitan City and Hana Financial Group at the Hana Financial Group Global Campus in Cheongna, Incheon. Governor Lee personally participated in the event, meeting with Yoo Jeong-bok, Mayor of Incheon Metropolitan City, Ham Young-joo, Chairman of Hana Financial Group, Kim Jin-yong, Head of the Incheon Free Economic Zone Authority, and representatives of SMEs based in Incheon. This is a broad initiative following his emphasis on win-win finance through visits to banks, card companies, and insurance companies in the first half of this year, now extending to encouraging and supporting SME exports.

As the European Union (EU) announced guidelines requiring companies above a certain size to conduct due diligence on environmental and human rights issues throughout their supply chains, the FSS’s support aims to prevent domestic export SMEs from suffering disadvantages due to non-compliance with these standards. This is the first case of cooperation between the financial sector and local governments to support ESG management for SMEs.

The FSS, Incheon City, and Hana Financial Group plan to support ESG management in various ways for domestic export SMEs that directly supply to large EU companies or cooperate with large companies subject to these regulations. Incheon City will select the target companies, and the FSS and Hana Financial Group will provide comprehensive consulting, including diagnosis, evaluation, and solution proposals related to ESG management. In particular, they will diagnose carbon emissions measurement, labor rights protection, and provide legal advice in accordance with the EU’s supply chain due diligence guidelines, focusing on environmental and human rights areas where SMEs face difficulties.

Going forward, the FSS plans to systematize ESG consulting for SMEs currently conducted in the financial sector to support the strengthening of ESG management for export SMEs in various regions. Governor Lee stated, "I hope this business agreement will not only enhance SMEs’ capabilities to respond to supply chain due diligence but also serve as an opportunity to raise awareness of ESG management among companies." He added, "We will continue to support financial institutions and companies in actively responding to ESG regulations through various means."

[Image source=Yonhap News]

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