'Mid-sized Enterprise Carbon Neutrality' between KOMCA, KEEP, and KETEP
Signing of Support and Cooperation Memorandum of Understanding (MOU) of a Mid-sized Enterprise
Meeting Held to Spread the Atmosphere of ESG Practice and Listen to Opinions


The business environment is changing as the European Union and the United States consider introducing carbon border taxes and global companies strengthen their commitment to participating in RE100. Consequently, eco-friendly markets such as renewable energy, hydrogen, and electric vehicles are growing rapidly. In the case of our mid-sized companies, the proportion of manufacturing is higher than other corporate groups (Large 20.7%, Medium-sized 38.5%, Small 20.1%), and the number of exporting companies is also increasing (1,690 in 2016 → 2,032 in 2019), creating a situation where active response to carbon neutrality is necessary.

On the 3rd, Minister of Trade, Industry and Energy Moon Seung-wook held a 'Meeting on the Expansion of ESG and Carbon Neutral Management in Middle-sized Enterprises' at The Zone Eulji Tower in Seoul with Kang Ho-gap, Chairman of the Korea Federation of Middle-sized Enterprises, CEOs of middle-sized enterprises, and heads of public energy institutions (Korea Energy Agency, Korea Institute of Energy Technology Evaluation and Planning).

The meeting was held for the first time to establish a cooperative framework between mid-sized companies and public energy institutions for ESG and carbon neutrality. It was held to foster an atmosphere of participation among mid-sized companies regarding carbon neutrality and ESG, to pledge support from public institutions, and to listen to opinions from the corporate field.

The Ministry of Trade, Industry and Energy, the Korea Energy Agency, the Korea Energy Technology Evaluation and Planning Institute, and the Federation of Middle-sized Enterprises (FME) recognized the importance of middle-sized enterprises in the implementation of carbon neutrality and signed a 'MOU for Support and Cooperation on Carbon Neutrality for Middle-sized Enterprises' between the FME and energy public institutions to support them. Accordingly, carbon-neutral management of middle-sized enterprises will be supported by utilizing the infrastructure of energy public institutions, and the strengthening of capabilities of middle-sized enterprises in the energy sector will be promoted.

First, support for carbon-neutral management will begin. Key measures include consulting for K-RE100 implementation and the establishment of renewable energy infrastructure, expanded support for Factory Energy Management Systems (FEMS) installation costs (50% starting in 2022), and support for the installation of electric vehicle fast charging stations within office buildings. Strengthening the capabilities of mid-sized energy companies will also be implemented. Enhancement of the capabilities of energy mid-sized companies is being pursued through regular meetings between the CTO Council of Mid-sized Companies and Energy MDs/PDs, including expanding the participation of mid-sized companies in energy R&D, promoting demand-linked R&D between public enterprises and mid-sized companies, and establishing master's and doctoral programs linked to employment at mid-sized companies.

Kang Ho-gap, Chairman of the Korea Federation of Middle-Sized Enterprises, stated, “Middle-sized enterprises deeply recognize the necessity of ESG management, but it is also true that they have significant concerns,” and emphasized, “Now that a Vice Minister for Energy has been established at the Ministry of Trade, Industry and Energy, I urge you to actively gather and reflect opinions from the field.”

Minister Moon Seung-wook urged the mid-sized business sector to “strive to grow sustainably as model companies that foster talent and practice social values as leaders of the Korean economy’s ESG.”

The government announced that it would support the entry of mid-sized companies into new markets and businesses, as well as foster the industrial ecosystem, by raising the early cash conversion guarantee limit for export receivables of the Korea Trade Insurance Corporation to support the liquidity of exporting mid-sized companies, nurturing 100 lighthouse companies, and enacting a special act on national core strategic industries.