KCCP and Lotte Chemical Sign MOU for Partner ESG Support Program

Establishing a Leading Model for Mutual Growth and Sustainable Supply Chains Between Large and Small-Medium Enterprises

The Korea Commission for Corporate Partnership (KCCP) announced on the 30th that it has signed a memorandum of understanding with Lotte Chemical to promote the "2025 Partner ESG Support Program." This agreement aims to systematically enhance the ESG (Environmental, Social, and Governance) management capabilities of partner small and medium-sized enterprises (SMEs), and to expand practical support so that a sustainable corporate culture can be established throughout the supply chain.

Lotte Chemical has been a leading company in the field, having participated in the KCCP's pilot "CSR Evaluation Support Program" in 2019 and leading the partner ESG support program for six consecutive years. This marks the longest participation among all companies in the KCCP's ESG support programs. To date, Lotte Chemical has provided customized ESG education and consulting to a total of 125 partner companies. Notably, the ESG compliance rate among the 20 partner companies supported last year increased by 38.7 percentage points, from the previous average of 52.1% to 90.8%. In addition, all 20 companies obtained the "ESG Excellent SME" certification.

Under this agreement, Lotte Chemical will develop customized ESG evaluation indicators for its partners based on the "SME ESG Standard Guidelines" developed by the KCCP, and will implement a comprehensive ESG support program that includes on-site inspections and improvement activities. Partner companies that achieve excellent evaluation results will receive an "ESG Excellent SME Certification" issued by the KCCP, which entitles them to various benefits.

In addition to the ESG support program, Lotte Chemical annually contributes to a mutual growth fund and operates a variety of programs to support partners in technological innovation, credit guarantees, and welfare improvements. The cumulative scale of these mutual growth programs over the past three years amounts to approximately 326 billion KRW. ESG excellent partners are provided with tangible incentives such as cash rewards, legal advice, and infrastructure support. Collaborative support methods, such as providing land within the company's Malaysian plant to partners, have also been introduced and well received. Furthermore, Lotte Chemical is expanding welfare projects to prevent industrial accidents and improve working conditions for its partners. Through a recent safety and welfare improvement project worth 58 billion KRW, the company has contributed to enhancing the quality of life for workers.

Lee Dalgon, Chairman of the Korea Commission for Corporate Partnership, stated, "Lotte Chemical is a leading company in the spread of ESG, playing a significant role in establishing a foundation for sustainable management among its partners," and added, "This agreement will serve as a practical stepping stone for partner SMEs to systematically respond to ESG requirements."