[Interview] "Yoon Government to Create 1 Million Jobs with 60 Trillion+ ESG Investment"

Yu Woonghwan, Economic Subcommittee 2 Transition Team Member
A Symbiotic Ecosystem for Large, Medium, and Small Enterprises Must Be Created
Proposes '5·5·1000·1 Million Roadmap'

Yu Woong-hwan, a member of the Economic Subcommittee 2 of the Presidential Transition Committee, is being interviewed by Asia Economy on the 27th. / Photo by Moon Ho-nam munonam@

[Asia Economy Reporters Hyunju Lee and Boryeong Geum] The Yoon Suk-yeol administration, set to launch next month, will invest 60 trillion won over the next five years in corporate ESG (Environmental, Social, and Governance) related projects. This initiative aims to support corporate ESG activities in response to global changes in the corporate environment, such as climate change and strengthening corporate social responsibility, thereby revitalizing private companies. Ahn Cheol-soo, the chairman of the Presidential Transition Committee, visited the Korea Chamber of Commerce and Industry to explain the support plan for ESG-driven innovative growth.

Woo-ung Hwan, a member of the Economic Subcommittee 2 of the Transition Committee, said in an interview with Asia Economy on the 29th, "During the Yoon Suk-yeol administration, the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups will invest 50 trillion won and 10 trillion won respectively in ESG-related projects," adding, "We expect this to create 1 million jobs." He further noted that including ESG investments from other ministries such as the Ministry of Environment, the total ESG-related investment by the next government will exceed 65 trillion won.

The Ministry of Trade, Industry and Energy has set an internal policy to invest 50 trillion won by 2027 to create new ESG markets. The Ministry of SMEs and Startups plans to secure 10 trillion won under the name of ESG-dedicated funds, which will be used for ESG venture funds and policy financing (loans and guarantees) exclusively for carbon neutrality and ESG companies. Based on this, the new government has set a final goal of creating 1 million jobs by fostering five ultra-gap technologies, five world-class companies, and 1,000 ventures and startups.

Woo-ung Hwan is well-known as a semiconductor expert but also recognized as an ESG specialist. He has worked at Intel, Samsung Electronics, and Hyundai Motor Company, and served as the head of SK Telecom's Open Collaboration Center, SV Innovation Center, and ESG Innovation Group (Vice President). During his tenure at SK Telecom, he actively led social value creation initiatives such as distributing cooking utensils in Myanmar, operating the ‘Silent Taxi’ driven by hearing-impaired taxi drivers, and providing meals for the most vulnerable groups in Korea.

Woo explained, "According to a 2020 McKinsey report, achieving carbon neutrality requires an investment of 150 billion euros (approximately 195 trillion won) in countries with populations between 50 and 70 million, which would create 3 million jobs. Based on this calculation and considering our investment scale, creating 1 million jobs is feasible."

He emphasized the importance of ESG management as the DNA of first movers. He cited the introduction of Starbucks’ reusable cups, which he participated in. SK Telecom and the social enterprise Oyster Able developed an unmanned reusable cup return machine applying vision artificial intelligence (AI) technology. This system has been commercialized and is currently collecting reusable cups through Starbucks. He explained, "From the franchise perspective, there are savings from not using plastic, and social enterprises can receive fees for sterilization and cleaning."

Yu Woong-hwan, a member of the Economic Subcommittee 2 of the Presidential Transition Committee, is being interviewed by Asia Economy on the 27th. / Photo by Moon Ho-nam munonam@

Woo expressed that such business models should continue to be created to build an ecosystem where large and small-to-medium enterprises can coexist. He said, "Startups and ventures can complement innovative technologies that large corporations cannot respond to quickly," adding, "Large companies can provide business opportunities, and together they become a lever for a win-win model." He continued, "In our country, where there are not many large corporations, the ecosystem can become a bottleneck for growth," and warned, "If large companies take away technologies from SMEs, profits may increase this year, but ultimately the ecosystem will be destroyed."

Coincidentally, Chairman Ahn also visited the Korea Chamber of Commerce and Industry that day to explain the policy direction for corporate ESG innovative growth under the Yoon Suk-yeol administration. The Transition Committee plans to establish a presidential ‘ESG Committee’ and launch a public-private joint ESG dedicated organization. Woo said, "We have a direction to support the growth of social ventures that solve ESG issues."