[Evolving CSR] Samsung Card Expands ESG Management... Supports Market Access and Marketing for Social Economy Enterprises

Warm Management Initiatives by Card Companies ② Samsung Card
Issuing 100 Billion KRW ESG Bonds
Supporting Struggling Social Enterprises
Listing Them on Its Shopping Mall
Providing Big Data-Based Marketing Support

[Editor's Note] The methods of social contribution by card companies are evolving. As the emphasis on corporate social responsibility grows in the atmosphere of sustainable management?focusing not only on financial indicators but also on non-financial factors such as environment, society, and governance?social responsibility is becoming more prominent from financing to social contribution targets, which are expanding to children and youth, local communities, natural environments, and culture and arts. Especially this year, card companies are conducting various social contribution activities, including financial support and marketing analysis using big data, for financially vulnerable groups facing crises due to the COVID-19 pandemic. Asia Economy presents a series on the social contribution activities of individual card companies leading warm-hearted management.

Samsung Card held a performance sharing meeting for the social economy enterprise market development project in November in collaboration with the Korea Social Enterprise Promotion Agency.

[Asia Economy Reporter Ki Ha-young] Samsung Card is one of the representative companies consistently carrying out social contribution activities. This year, as social demand for 'Environmental, Social, and Governance (ESG) management' has increased, it is taking the lead in big data-based marketing support for small and medium-sized merchants and pioneering sales channels for social economy enterprises. This month, it also established an ESG Secretariat to serve as the control tower for ESG management.

A recent notable move is the issuance of ESG bonds. These bonds have a maturity of five years and total 100 billion KRW. ESG bonds are special-purpose bonds emphasizing public interests such as environmental, social, and governance factors, which are non-financial elements of a company. They can only be used to raise funds for increasing social value, supporting vulnerable groups, creating jobs, and improving eco-friendliness. Samsung Card presented plans for fund utilization, including financial support for small and medium-sized merchants and eco-friendly vehicle financial services, while recruiting ESG bond investors.

Additionally, Samsung Card plans to strengthen ESG management activities by establishing a mid- to long-term roadmap in collaboration with external professional consulting firms. To inform customers and investors about ESG activities, it is preparing to publish a sustainability management report and open an ESG management section on its website.

Samsung Card's social contribution activities for social economy enterprises struggling due to COVID-19 have attracted industry attention this year. As of last year, there were about 22,000 social economy enterprises with 130,000 employees. Samsung Card supported these enterprises by securing sales channels and expanding sales through big data marketing support.

Since last September, Samsung Card has supported the sales channels by listing over 200 excellent products from 53 social economy enterprises on 'Samsung Card Shopping'.

Social economy enterprises, created to solve various social problems through economic activities, experienced a sharp decline in sales due to the impact of COVID-19. This is because most social economy enterprises operate primarily offline stores. To alleviate their difficulties, Samsung Card supports social economy enterprises by listing their products on its own shopping mall, 'Samsung Card Shopping,' thereby helping to develop online sales channels.

The social economy enterprises to be listed on Samsung Card Shopping were selected in collaboration with the Korea Social Enterprise Promotion Agency. The selected companies were chosen based on criteria such as corporate environment, product competitiveness, and social value. As a result, about 200 excellent products from 53 companies with enhanced product competitiveness were listed on Samsung Card Shopping, and Samsung Card also supports customer service and operational management for these products.

To expand sales of social economy enterprises, Samsung Card is also supporting marketing based on big data. It surveys product satisfaction and areas for improvement through Samsung Card's big data-based real-time survey service, 'Real-time Research Service,' targeting customers who purchased the products. Based on this, Samsung Card conveys the vivid voices of customers who used the products to the companies, helping improve product completeness through product enhancement and thus aiding product competitiveness.

Samsung Card plans to further expand big data marketing support for social economy enterprises in the future. It will continuously discover excellent products from social economy enterprises and provide production and design support, as well as support for listing and operational management on Samsung Card Shopping. A Samsung Card official said, "We will continue to promote various ESG management activities, including coexistence with social economy enterprises, by utilizing Samsung Card's digital and big data capabilities."