Expansion of ESG Management Among Mid-sized Export Companies... "Challenges Remain"

KFME Announces Results of
"Mid-Sized Enterprises ESG Response Status Survey" on the 21st

ESG (Environmental, Social, and Governance) management, which has become a global trade and commerce standard, is spreading among mid-sized export companies, but challenges in transitioning management systems such as manpower and resources remain.

The Korea Federation of Mid-sized Enterprises (KFME) announced this on the 21st through the results of the "Mid-sized Enterprises ESG Response Status Survey." The survey was conducted from December 12 to 20 last year, targeting 288 mid-sized export companies.

The survey results showed that 46.2% of mid-sized export companies have adopted ESG management, and 25.3% plan to implement it within three years, indicating active response to ESG environmental changes. However, they also reported difficulties in the cooperation process before and after ESG compliance, such as "lack of ESG awareness among partners (47.9%)" and "lack of manpower and resources for ESG response (44.6%)."

In particular, 28.5% of mid-sized export companies have not even planned to introduce ESG management due to issues such as "lack of professional personnel (37.8%)," "difficulty in adjusting management priorities (36.6%)," and "burden of introduction and operation costs (29.3%)." Concerns among mid-sized companies about risks arising from failure to comply with ESG regulations, such as "legal sanctions including export restrictions and fines (39.1%)" and "termination of transactions with global clients (36.0%)," were also confirmed to be significant.

To respond to global ESG regulations, mid-sized companies are pursuing measures such as "obtaining certifications from export destination countries (38.1%)" and "checking guidelines for each regulation and organizing internal processes (35.5%)," but 29.9% of mid-sized companies stated that their regulatory response preparations are insufficient.

Lee Ho-jun, Executive Vice Chairman of KFME, said, "As ESG evolves not simply as 'good' management but as a standard regulating global trade and commerce order, it is urgent to establish an efficient government support system to ensure that mid-sized companies do not suffer losses in the global market, including the introduction and operation of ESG management and strengthening negotiations with counterpart countries for dispute resolution." He added, "We will closely communicate with the government to expand support for ESG management adoption not only for mid-sized companies but also for all partner companies."