Gyeonggi Province Launches Tailored ESG Support for SMEs

Gyeonggi Province announced on the 10th that it will implement the '2026 Small and Medium Enterprises (SME) ESG Management Support Project' to strengthen the environmental, social, and governance (ESG) capabilities of local SMEs. This move reflects a growing recognition of ESG principles in enhancing corporate sustainability and competitiveness, especially as international trade regulations tighten.

Beginning in 2024, the European Union will introduce mandatory disclosures of ESG information under the Corporate Sustainability Reporting Directive (CSRD). For SMEs, particularly those with high export ratios, adhering to ESG-related demands is becoming a fundamental requirement imposed by trading partners. As a result, there is an increasing need for systematic preparatory support in this domain.

The Gyeonggi initiative plans to bolster the ESG competencies of SMEs incrementally through a variety of tailored support measures, including drafting sustainability management reports, hosting SME ESG forums, providing ESG awareness training, conducting diagnostic evaluations and improvement support, offering consulting services, and facilitating international ESG certification acquisition. These components are expected to create a comprehensive framework for enhancing ESG readiness among local firms.

The sustainability management report writing support and the establishment of SME ESG forums are newly introduced this year. By diagnosing the ESG data available to companies and providing expert feedback, these programs aim to improve companies' abilities to respond to disclosures. The forums will operate five times, allowing for information sharing among businesses while tailoring discussions to address specific industry ESG requirements.

With training targeted at 1,000 participants and the diagnostic evaluations and improvement support extending to 300 companies, the framework addresses fundamental capacity-building needs and aids the resolution of vulnerable areas unique to each firm. Concurrently, assistance in advancing management practices will also be provided, with consultations designed to align with human rights and environmental standards required by primary companies or overseas buyers, thereby solidifying the reliability and credibility of these SMEs.

Moreover, Gyeonggi Province plans to expand its support in collaboration with specialized institutions such as KOTRA (Korea Trade-Investment Promotion Agency) and the Cooperation Foundation for large, medium, and small enterprises, thereby broadening the scope of assistance for overseas expansion and incentives for exemplary companies.

The criteria for participation in the Gyeonggi Province ESG support program extends to local SMEs operating for over three years with headquarters or factories within the region. Interested businesses can apply via the Gyeonggi Enterprise Secretary platform in April, and specific schedules and details will be available through future announcements. Sun-sil Song, Head of the Social Innovation and Economic Department, stated that “ESG management is now an essential factor determining corporate sustainability and competitiveness,” and emphasized a commitment to providing comprehensive support to ensure local SMEs can view ESG not as a burden, but as an avenue for new growth opportunities.