[2021 Mirae Company Forum] Hong Nam-gi: "We will complete the Korean-style K-ESG indicators by next year"

"ESG Management Disclosure Starting from Public Institutions in July"

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, delivered a welcome speech via video at the '2021 Asia Future Business Forum' hosted by Asia Economy on the 29th at the Western Chosun Hotel in Jung-gu, Seoul. Asia Economy set this year's theme of the Future Business Forum as 'Korean-style ESG Solutions in the New Normal Era' and organized a session to contemplate ways to enhance the value of Korean companies through expert lectures in the ESG field. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Dongwoo Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, announced on the 29th that the Korean-style ESG (Environmental, Social, and Governance) indicator, so-called 'K-ESG,' will be fully developed to meet global standards by next year.

On the morning of the same day, at the '2021 Asia Future Enterprise Forum' held at the Westin Chosun Hotel in Sogong-dong, Jung-gu, Seoul, Deputy Prime Minister Hong said, "To minimize potential confusion in corporate management and investment caused by inconsistent domestic and international evaluation indicators, we will complete the Korean-style ESG indicators."

Hong explained, "To reduce the burden on companies from adopting ESG, the government will create a transparent ecosystem, lead a paradigm shift, and support new opportunities for corporate growth," adding, "To provide accurate information to investors, the ESG-related disclosure obligations for domestic companies will be gradually expanded." To this end, by 2030, ESG management disclosures will be progressively required for all KOSPI-listed companies, starting with public institutions from July.

For a sustainable paradigm shift, plans are in place to prepare a mid- to long-term carbon emission reduction scenario within the first half of this year.

Hong said, "In particular, we will establish carbon neutrality promotion strategies by sector, such as industry and transportation, and to support a fair transition for companies and industries during the process, we plan to establish a climate response fund within this year."

He also explained, "We will faithfully implement the recently announced plan by President Moon Jae-in at the Climate Summit to further raise the greenhouse gas reduction target (NDC) and support developing countries' climate change responses through major environmental international organizations hosted domestically, such as the Green Climate Fund (GCF) and the Global Green Growth Institute (GGGI)."

Hong emphasized, "In nurturing future industries such as semiconductors, future cars, and bio-health, we will promote investment in the Big 3 sector venture fund, which was established last year with about 900 billion KRW, to ensure that small and less recognized companies, including SMEs, are not left behind," adding, "We aim to raise an additional 500 billion KRW or more this year."

The number of innovative procurement products will be expanded to over 800 this year, and a win-win cooperation system will be established through the operation of cooperation councils for future cars and semiconductors.

Finally, Hong said, "The phrase from the Talmud, 'If not me, then who? And if not now, then when?' is the most important core of our ESG actions," adding, "Finding a Korean-style ESG solution is a task that 'we must do now and immediately' for the sustainable development of companies and our economy."