Korea Venture Investment "Realizing a Sustainable Venture Ecosystem"... Announces ESG Management Direction (Comprehensive)

On the 30th, 'Korea Venture Investment ESG Initiative' Held
Industries Violating ESG Excluded from Investment

Korea Venture Investment announced its goal of ‘realizing a sustainable venture ecosystem.’

On the morning of the 30th, Woo-Whan Yoo, CEO of Korea Venture Investment, announced the direction for promoting ESG management through the ‘2023 Korea Venture Investment ESG (Environment, Social, Governance) Initiative’ held at the Chosun Palace in Gangnam, Seoul.

Yu Woong-hwan, CEO of Korea Venture Investment, is announcing the direction of ESG management promotion through the '2023 Korea Venture Investment ESG (Environment, Social, Governance) Initiative' held on the morning of the 30th at Chosun Palace in Gangnam, Seoul. [Photo by Korea Venture Investment]

Internally, the goal is to establish an ESG management system. The four strategic directions are ‘Creating an Environment for Future Generations,’ ‘Better Lives for All,’ ‘Transparent Management System,’ and ‘Leading Global Standards for ESG Venture Investment.’ The ten strategic tasks to achieve this include carbon zero implementation, education for future generations, strengthening social contributions, providing quality of life, internalizing diversity, equity, and inclusion, establishing a transparent management system, diagnosing ESG management levels, participating in global initiatives, sustainable promotion, and building an ESG investment system.

Regarding this, CEO Yoo explained, “If we invest well in these areas, many stakeholders will be able to achieve results in 10 or 20 years. Therefore, we are trying to design this picture with a longer-term perspective.”

Externally, a sustainable investment strategy will be implemented. The business is divided into three stages: ‘capital contribution,’ ‘investment,’ and ‘post-management.’ First, in capital contribution, ESG factors will be evaluated and reflected when selecting fund managers. ESG field inspections will be conducted through due diligence checklists, and the inspection results will be evaluated at the capital contribution review committee.

Industries that violate ESG principles will be excluded from investment through negative screening. Post-management will be supported by ESG information disclosure and monitoring. For example, fund managers (GPs) will be required to disclose ESG information and collect data.

CEO Yoo said, “We conduct negative screening on various businesses, and many ESG experts are working together to advance and quantify the process. In terms of post-management, when problems arise, AI-based systems can detect issues and suggest directions. By focusing selectively on these, we can solve problems. The advancement of such a system is currently underway and is expected to be systematized by the end of next year.”

Yu Woong-hwan, CEO of Korea Venture Investment, is announcing the direction of ESG management promotion through the '2023 Korea Venture Investment ESG (Environment, Social, Governance) Initiative' held on the morning of the 30th at Chosun Palace in Gangnam, Seoul.
[Photo by Korea Venture Investment]

Aditya Vikram, Head of Private Equity at the UN Principles for Responsible Investment (PRI), who delivered the keynote speech that day, emphasized that not only large corporations but also startups, limited partners (LPs), and general partners (GPs) should pursue ESG. He provided insights into each role and realistic implementation directions. Vikram stressed, “Focusing on responsible investment at the GP level can enhance brand reputation, talent acquisition, and LP capital inflow. Active ESG activities by portfolio companies positively impact corporate value and returns at listing.”

Following this, Dong-Soo Kim, Director of the ESG Research Institute at Kim & Chang Law Firm, and Yoon-Je Jang, Director of the ESG Research Institute at Sejong Law Firm, presented on ESG trends and the future of the venture investment market, and legal and institutional changes related to ESG in the venture capital (VC) investment market, respectively.

Afterward, a discussion was held on ‘Directions for Promoting ESG Activation in the Venture Investment Market and the Role of Korea Venture Investment.’ Moon Sung-Hoo, Head of the ESG Center at Won Law Firm, chaired the discussion. Participants included Won-Woong Kim, Team Leader of Responsible Investment at the National Pension Service, Jin-Seok Choi, Team Leader of Responsible Investment at Korea Investment Corporation (KIC), Ki-Soo Park, Head of ESG Division at Stick Investment, Young-Kwon Koo, Vice President at Smilegate Investment, and Jung-Kwon Ahn, Chief Sustainability Officer (CSO) at Noeul Co., Ltd.

The event was attended by over 120 people, including government ministries, major private capital contribution institutions in the venture investment market, VC and venture fund managers, and ESG industry professionals.

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