"Korean Companies Face ESG Evaluation Challenges... Will Actively Promote Best Practices"

James Kim, President of the American Chamber of Commerce in Korea (fourth from the left), Sungjoo Kim, Co-Chair of the National Assembly ESG Forum, and Taeshin Kwon, Executive Vice Chairman of the Federation of Korean Industries, are posing for a commemorative photo at the 1st Korea-US ESG Forum held on the 13th. Photo by the American Chamber of Commerce in Korea

[Asia Economy Reporter Choi Dae-yeol] Kwon Tae-shin, Executive Vice Chairman of the Federation of Korean Industries, stated on the 13th, "We will actively identify and verify excellent ESG (Environmental, Social, and Governance) management cases of Korean companies and communicate them to Morgan Stanley Capital International (MSCI)."

At the 1st Korea-US ESG Forum held that day, Vice Chairman Kwon said, "Many Korean companies are making efforts in ESG management, but the evaluation results by MSCI for our companies do not seem as high as expected." He explained that the reason for the inadequate evaluation of Korean companies is due to a lack of information, and he plans to find excellent ESG cases through a consultative body composed of domestic and international companies and institutions.

MSCI selects major companies worldwide and publishes stock indices, and in recent years, it has also provided evaluations in the ESG field, which has become a global issue. Since global asset managers are likely to consider these indicators when deciding to invest in Korean companies, the goal is to provide accurate information.

Seok Jun, Head of Morgan Stanley Korea Strategy, shared in his keynote speech that "over 80% of investors in London and New York are currently engaged in or planning sustainable investments, and 90% of millennial investors are interested," highlighting recent investment trends. He also pointed out that the size of global ESG funds has nearly doubled from $900 billion in 2018 to $1.8 trillion this year. Steven Kang, ESG Platform Leader at Samil Accounting Corporation, also cited semiconductor company Intel’s emphasis on ESG to widen the gap with its competitors as an excellent case.

James Kim, Chairman of the American Chamber of Commerce in Korea, which co-hosted the event, said, "Through the ESG Committee led by the three co-chairs from Korea 3M, Korea Dow, and Korea P&G, we will support and encourage global sustainable management," adding, "This will be a great help in preparing for a more sustainable future."