On the 18th, participants of the launch ceremony of the 'Korea Impact Value Evaluation Institute' held at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, are taking a commemorative photo. Photo by Korea Standards Association
[Asia Economy Reporter Kwak Minjae] The 'Korea Impact Value Assessment Institute,' an organization dedicated to developing and spreading a Korean-style model for measuring and evaluating Environmental, Social, and Governance (ESG) performance, held its launch ceremony on the 18th at the Korea Chamber of Commerce and Industry.
Impact value assessment refers to measuring a company's ESG performance in monetary terms and reflecting it in the company's valuation. Existing efforts in ESG measurement and disclosure have focused on standardizing measurement indicators, such as those by the International Sustainability Standards Board (ISSB), to enable objective comparisons between companies.
Impact value assessment goes a step further by using standardized measurement indicators as basic data while measuring the monetary value effect so that it can be directly reflected in company valuation. It is gaining attention as a future model for ESG performance evaluation methods. ESG monetary value information is expected to be utilized in investment institutions' company valuation and investment decision-making, as well as within companies for decision-making and performance evaluation.
The institute was established with the purpose of introducing global standard research methodologies and adapting them to domestic circumstances, based on cooperation with the Impact-Weighted Accounts Initiative (IWAI) at Harvard Business School, one of the leading research groups in impact value assessment.
Professor Moon Cheol-woo of Sungkyunkwan University serves as the institute's president, with Chairman Kang Myung-soo of the Korean Standards Association, Professor Baek Tae-young of Sungkyunkwan University, Chairman Na Jae-cheol of the Korea Financial Investment Association, Chairperson Lee Yang-hee of the International Child Rights Center, Professor Jang Ji-in of Chung-Ang University, and Professor Jeon Sung-bin of Sogang University participating as senior committee members.
Professors Kim Wan-hee of Gachon University, Son Hyuk of Keimyung University, Lee Byung-hee of Hanyang University, Hong Cheol-gyu of Chung-Ang University, and Hwang In-yi of Seoul National University participate as academic committee members. Additionally, Executive Director Lim Chang-gyu of Arc Impact Asset Management, Partner Kwon Mi-yeop of Samil PwC, Managing Director Hwang Jeong-hwan of Samjong KPMG, Director Kim Dong-soo of Kim & Chang Law Firm, CEO Nam Wook of Korea Technology Credit Rating, Executive Director Oh Seung-jae of Sustainvest, and Director Kim Dong-yang of NH Investment & Securities participate as practical committee members.
At the launch ceremony, President Moon Cheol-woo explained the significance of the institute's establishment, stating, "Recently, various research groups worldwide have been collaborating to derive global standard methods for impact value assessment. In line with this, the first expert group for impact value assessment in Korea has been born."
Chairman Kang Myung-soo of the Korean Standards Association said, "Monetary value assessment of ESG performance will be an important pillar leading the ESG ecosystem in the future. We will do our best to pool the association's capabilities to ensure that voices from all sectors are reflected in the development of a Korean-style ESG performance measurement and evaluation model."
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