KLRI : KOREA LEGISLATION RESEARCH INSTITUTE

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Korea Legislation Research Institute (KLRI) held the 4th E.S.G. Legislation Forum under the theme of “Structural Problems and Solutions of Korean Style Governance (G): from the perspective of the establishment of E.S.G. framework” at IFC Conference Hall in Yeouido from 3 p.m. on March 16 (Thur.). 

This forum was designed to review the characteristics and limitations of governance, especially Korea's corporate governance, among Environmental, Social, and Governance, and to discuss tasks to improve corporate governance from the perspective of establishing an E.S.G. framework.

 

The forum was presented and discussed under the themes of ▲E.S.G. and Investor Protection ▲ Changes of Korean Governance and Capital Market and Tasks ▲Case Studies on SM Entertainment and Bank Stock Campaign, and Implications for Improving Korean Governance (G). 

In the presentation titled ‘E.S.G. and Investor Protection’, Professor Kim Woo-Jin at Seoul National University’s Business School stressed the need to strengthen legal norms related to investor protection in order to systematically settle the E.S.G. in place.

 

Professor of law Chung Joon-Hyuk at Seoul National University pointed out the characteristics and problems of Korean corporate governance and proposed a direction to revise laws such as the Capital Market Act which is led by the changes like the larger E.S.G. investment in the capital market.

Lee Chang-Hwan, CEO of Align Partners, introduced one of the hottest recent issue, the process of the M&A of SM Entertainment, under the theme of ‘Case Studies on SM Entertainment and Bank Stock Campaign, and Implications for Improving Korean Governance.’

 

After the presentations, a comprehensive discussion was held with eleven E.S.G. experts from academia, legal field, and public institutions. They discussed on various issues that are needed for institutionalizing E.S.G., such as the settlement of E.S.G. and the need for awareness of stakeholderism, the role of institutional investors including E.S.G. management and pension funds, the importance of shareholder activism, and the institutional settlement of E.S.G. and the possibility of using soft norms. 

The discussion and the presentations made at the 4th E.S.G. Legislation Forum are planned to be summarized by topic and published as the E.S.G.- Ⓖ Brief.

 

KLRI has held the E.S.G. Legislation Forum since March 2022. There have been three Forums so far under the topics of ‘The Start of the New Government and the Prospect of Legislating E.S.G.’ (1st), ‘The Status and Outlook of Supply Chain Due Diligence in Korea and in Europe’ (2nd), ‘E.S.G. and Gender Equality’ (3rd). The forum will continue to be held in 2023 under the topics of ‘The Korean Governance (G)’, ‘Environmental Finance and Greenwashing (tentative title)’, and ‘Integration of Global Substantiality Disclosure and Korea’s Response’ (tentative title).

  

KLRI conducts basic and policy research for possible institutionalization of E.S.G. disclosure as the importance of E.S.G. grows as a great transition to the economic paradigm.

 

 

Date: March 16, 2023

Venue: IFC Conference Hall in Yeoido