The implementation of the EU Supply Chain Due Diligence Directive (CSDDD) is becoming clearer, alongside the mandatory ESG reporting requirements in major export countries like the United States. As a result, effective ESG compliance has emerged as a new trade barrier that South Korean exporters must overcome. However, many SMEs are struggling to develop regulatory response roadmaps and manage disclosure data due to a lack of specialized personnel.
Notably, even if South Korean companies are not directly subject to local laws, failure to meet the ESG data requirements of global primary contractors could adversely affect future business relationships or bidding competitiveness. This highlights the importance of developing practical ESG compliance capabilities to maintain stable export transactions and supply chain sustainability.
KOTRA (Korea Trade-Investment Promotion Agency), led by CEO Kang Kyung-seong, has announced a two-day 'ESG Practical Capacity Building and Coaching Program' in collaboration with the global testing and certification agency Intertek, scheduled for July 30.
This program is designed to enhance the practical capabilities of companies in responding to ESG regulations, reflecting the on-the-ground challenges faced by businesses. The curriculum focuses on understanding regulatory trends, disclosure and verification practices, followed by tailored coaching.
The first day will cover global ESG regulatory developments and the status of mandatory disclosures by country, along with various government support policies available to exporters. Participants will engage in practical sessions related to EU Supply Chain Due Diligence compliance, EcoVadis assessment practices, and case studies of successful implementations.
The second day will focus on practicalities for issuing sustainability management reports in line with global standards, including a detailed checklist for third-party verification of ESG disclosure data—an area many companies find challenging. Strategies for integrated management of ESG data through AI and digital technologies will also be addressed.
To enhance practicality, KOTRA will conduct a preliminary survey on participant companies' ESG issues, followed by group coaching sessions, enabling immediate application of learned concepts in the field.
KOTRA plans to continue providing education, consulting, and information dissemination to bolster companies' ESG response capabilities, anticipating that effective compliance will become a core element of maintaining entry into global supply chains and ongoing business dealings.
According to Ahn Young-joo, KOTRA's Vice President and Head of the AI Trade Investment Division, "Beyond issuing ESG reports, establishing a system for continuous monitoring of supply chain data, including carbon emissions and labor conditions, is becoming critical for export competitiveness. We aim to actively support companies in achieving effective compliance through prompt information delivery and practical training."
