Kolon FnC Signs MOU with Local Mongolian Partner to Establish "Circular Fashion"

Building a Network for the Promotion of the 'KOICA IBS-ESG Initiative' Project

Kolon Industries FnC division announced on the 22nd that it has signed a Memorandum of Understanding (MOU) to establish a cooperative relationship with a local partner company in Mongolia to promote the ‘KOICA IBS-ESG Initiative’ project.

Since last year, Kolon FnC has been participating in the ‘KOICA IBS-ESG Initiative’ project supported by KOICA (Korea International Cooperation Agency) by forming a consortium with its subsidiary K.O.A.

(From left) Bayar M., Head of the Department of Light Industry Engineering, Mongolian University of Science and Technology; Nomin B., Head of External Cooperation, Mongolian Wool & Cashmere Association; Seo Hyun-jae, Deputy Director, KOICA Mongolia Office; Batzul Sh., CEO of Shopee; Yoo Dong-ju, Executive Director of ESG Impact PU at Kolon FnC and CEO of KOA. Provided by Kolon FnC.

The project aims to establish a system for recycling waste clothing and inventory into regenerated materials in Mongolia and Vietnam. Through this, it plans to build a circular fashion environment and realize a low-carbon development paradigm in the production and disposal stages of the fashion industry. The main contents of the project include ▲establishing a textile circulation center Circular Factory using recycling technology ▲pilot projects utilizing clothing waste ▲training circular fashion experts in connection with Mongolian universities ▲public awareness improvement activities through campaigns. The project activities will be carried out in phases until 2028.

About 40 local stakeholders attended the signing ceremony held on the 21st in Ulaanbaatar, Mongolia, including Kolon FnC, K.O.A, Shoppy, Mongolian UBS Broadcasting Station, Mongolian University of Science and Technology, and the United Nations Development Programme (UNDP). Notably, Odontuya S., Minister of the Ministry of Environment and Climate Change of Mongolia, also attended the event. Minister Odontuya said, “We look forward to Kolon’s expertise in eco-friendly business cooperation,” adding, “This will be a meaningful project that not only focuses on recycling cashmere waste but also raises social understanding of sustainable development models and spreads new knowledge to enhance the value of the environment.”

Yoo Dong-joo, CEO of K.O.A and Executive Director of Kolon FnC ESG Impact PU, said, “This MOU is an opportunity to establish a sustainable cooperation system with local partners and promote mutual growth to realize circular fashion in the cashmere industry,” adding, “We will work closely with our partners to create a sustainable network that has a positive impact on the region and the entire industry.”