An industrial policy approach to expanded private sector ESG and its implications

Despite the increased interest in corporate environmental, social, and governance (ESG) management, which reflects social values within the business environment, discussions on ESG-related policies are limited in that they are overly focused on ESG reporting standardization.K-ESG should be utilized as a guideline to develop policies that increase ESG management competence. Such policies should selectively chose which types of firms to support, with specific policy measures and targeted areas.This analytical brief analyzes the status of ESG governance in Korea and proposes a set of policies aimed at strengthening corporate ESG competencies