SK Chairman Chey Tae-won Reiterates ESG Management at Boao Forum

Choi Tae-won "Let's Accelerate ESG Management"
SOVAC Connects Social Enterprises and Social Ventures with ESG Investors

On the 29th, at the Sangui Hall in Jung-gu, Seoul, Chairman Choi Tae-won is applauding during the 'Non-face-to-face Town Hall Meeting' held in place of the inauguration ceremony of the new Korea Chamber of Commerce and Industry Chairman Choi Tae-won. March 29, 2021 Photo by Joint Press Corps

[Asia Economy Reporter Hwang Yoon-joo] SK Group Chairman Chey Tae-won emphasized the importance of ESG (Environmental, Social, and Governance) management at the opening ceremony of the Boao Forum held in Hainan, China, on the 20th. Chairman Chey, who has stressed corporate social responsibility for several years by stating that "ESG is not a choice but a necessity," has been promoting ESG widely across not only the economic sector but also society at large since becoming the chairman of the Korea Chamber of Commerce and Industry, a leading domestic economic organization, last month.

At the event, Chairman Chey diagnosed through a video message that ESG management has become a matter critical to corporate survival. He reportedly emphasized the need for efforts to accurately measure social performance to strengthen ESG management.

Except for last year when the forum was canceled due to COVID-19, Chairman Chey has consistently attended the Boao Forum every year. At the 2019 forum, he was invited as an official speaker at the opening ceremony and proposed the necessity of methodologies to measure Social Value (SV) and incentives to support this. This year, he urged accelerating ESG management to overcome COVID-19 and ensure sustainable corporate growth. Chairman Chey also emphasized the need for fundamental changes centered on ESG to overcome human crises at the Tokyo Forum and Beijing Forum held last year. He pointed out the important role of business leaders in the process of overcoming and recovering from COVID-19 and called for a new entrepreneurial spirit different from the past.

Meanwhile, SOVAC (Social Value Connect), which Chairman Chey proposed and established in 2019, introduced a program connecting social enterprises, social ventures, and professional investors interested in ESG on this day. Starting next month, experts such as impact investors will advise social enterprises or social ventures on fundraising strategies or make actual investments. Social enterprises and social ventures are companies that pursue social values such as environmental protection or providing jobs for vulnerable groups while conducting business activities, but they often face difficulties in attracting investment due to limited experience or know-how in investor presentations. The initiative aims to support them and revitalize the social enterprise ecosystem.

SOVAC is the largest private social value platform in Korea and plans to select about 2 to 3 organizations monthly for consultations and other support. An SK official said, "With growing interest in social value and ESG in the investment market recently, not only impact investors who prioritize social performance but also general investors are expected to participate."