Foundation and KETEP Join Hands to Support SMEs' ESG Management

MOU signed on November 12

The Korea Foundation for Cooperation of Large and Small Businesses, Agriculture and Fisheries (the Foundation) announced on November 13 that it had signed a memorandum of understanding (MOU) with the Korea Institute of Energy Technology Evaluation and Planning (KETEP) on November 12 in the institute’s reception room in Gangnam-gu, Seoul. The agreement is aimed at promoting ESG management among small and medium-sized enterprises (SMEs) and strengthening ESG capabilities across supply chains.

The agreement was drawn up to support the adoption and expansion of ESG management by SMEs amid tighter ESG disclosure requirements and related regulations, particularly across global supply chains. The two organizations agreed to jointly identify ESG cooperation models and link and pursue related projects, while also working together to promote ESG cooperation between large companies and SMEs and share best practices.

Officials from the Korea Foundation for Cooperation of Large and Small Businesses, Rural Affairs and the Korea Institute of Energy Technology Evaluation and Planning pose for a commemorative photo at an MOU signing ceremony held on the 12th in the reception room of the institute in Gangnam-gu, Seoul. The Korea Foundation for Cooperation of Large and Small Businesses, Rural Affairs

For the first time this year, KETEP selected six SMEs for its own ESG support program. It is helping the selected companies improve their management by assessing their ESG capabilities, setting key activities and indicators, and developing ESG response strategies.

The Foundation issues an “ESG Excellent SME Certificate” to companies with an ESG indicator compliance rate of 80% or higher, based on its “Standard ESG Guidelines for SMEs.” By the end of last year, a cumulative total of 1,655 companies had received the certificate. Companies holding the certificate can receive preferential benefits in areas including finance, exports, the environment, and research and development (R&D).

Byun Taeseop, secretary-general of the Foundation, said, “Through this agreement, we will work closely with KETEP to ensure that SMEs’ ESG management efforts lead to tangible benefits and new growth opportunities, and expand support and incentives for SMEs with exemplary ESG practices.”

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