KDI-Kwansaecheong Add ESG Evaluation Items to Duty-Free Shop License Review Criteria

[Asia Economy Reporter Jang Sehee] There has been a suggestion to add Environmental, Social, and Governance (ESG) criteria to the evaluation standards for bonded sales shops (duty-free shops) license examinations.

On the 2nd, the Korea Development Institute (KDI) and the Korea Customs Service jointly held an online public hearing on "Improvement of Evaluation Standards for Bonded Sales Shop License Examinations," announcing the proposed improvements to the evaluation standards researched since April this year. The public hearing proceeded with a presentation by Kim Jeongwook, Head of the KDI Regulatory Research Center (Research PM), followed by a Q&A session with attending stakeholders.

During this public hearing, opinions from stakeholders such as the duty-free industry, associations, and airport corporations were primarily gathered, and the final evaluation standards will be derived by comprehensively considering the presented opinions.

The main improvements in this result include adjusting the scoring for cooperation items between small and medium-sized enterprises (SMEs) and mid-sized companies in restricted competition proposals, and awarding additional points when new technologies are introduced in bonded and cargo management systems. Additionally, ESG-related evaluation items (eco-friendly management and quality of employment) will be added, and renewal evaluation criteria will be separated between large corporations and SMEs/mid-sized companies.

Furthermore, detailed guidelines, the timing for applying the improved evaluation standards, and the introduction of a minimum passing score system for each evaluation category will be finalized after thorough discussions with stakeholders through the Q&A session.

Meanwhile, Kim Jeongwook, Head of the KDI Regulatory Research Center, stated, "This study focused on adding ESG evaluation items to create a sustainable management environment for the duty-free industry and establishing evaluation standards suitable for the characteristics of large corporations and SMEs/mid-sized companies." He added, "Through the public hearing, we aim to directly hear the opinions of duty-free shops struggling due to COVID-19 and reflect them in the research results." The public hearing was held online to prevent the spread of COVID-19.