[ESG Symposium] Park Jaeheum "Active Response Needed for Stakeholder-Centered Governance"

'2021 Asia ESG Symposium' Presentation

Jaeheum Park, Head of ESG Impact Hub at EY Han Young, is attending the '2021 Asia ESG Symposium' held on the 29th at the Westin Chosun Hotel in Jung-gu, Seoul, and is giving a presentation on the topic of 'Current Status and Issues of ESG Promotion at Home and Abroad.' Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Ki-min Lee] "Recently, corporate governance is shifting from a shareholder-centric approach to a stakeholder-centric one, which entails broader responsibilities toward members of society. Boards of directors and others involved in corporate governance must continuously pay attention to and invest in ESG (Environmental, Social, and Governance)."

Jaeheum Park, EY Han Young ESG Impact Hub Leader and Partner (photo), stated this during his presentation titled "Current Status and Issues of ESG Promotion at Home and Abroad, Focusing on Governance" at the '2021 Asia ESG Symposium.'

Partner Park first explained, "The traditional concept of governance focused on control based on legal standards. However, recently, amid a complex management environment, there is a growing trend to make effective decisions and understand stakeholders' needs, focusing on governance capabilities that enable decision-making aligned with these demands."

He further explained that this has led to global attention on various ESG-related regulations, expanded ESG investments in carbon neutrality, health and safety, ESG corporate disclosures by stock exchanges worldwide, incorporation of ESG in mergers and acquisitions (M&A), and new ESG-related consumption trends influenced by the MZ (Millennial + Z) generation.

He particularly noted that major countries such as the United States, the EU, and Japan are adding ESG-related regulations, including "mandatory inclusion of women and minorities on boards," "human rights included in corporate governance codes," and "sustainable governance." Partner Park argued, "As the overseas sales ratio of domestic companies increases, continuous attention and investment are necessary from the perspective of basic legal compliance abroad as well as reputation and brand management."

He also analyzed that companies with sound governance and high levels of investor protection tend to have better investment returns and lower volatility, positively impacting corporate value. He emphasized, "Recently, discussions to enhance diversity within governance have been taking place domestically and internationally, and such structures will serve as internal safeguards within companies that can ensure resilience against uncertainties in the business environment."