[A Word from the Head of ESG Research Institution] ESG Research Institution, the platform of knowledge... Aspires to be an institution leading the ESG direction, increasing social influence 

  ESG, which stands for Environmental Social Governance, represents the non-financial factors of a company and embodies the philosophy that companies practicing transparent management in areas such as eco-friendly operations, socially responsible management, and governance improvement can achieve sustainable growth. Interest in ESG is growing not only in private companies but also in public institutions. 

  In October 2021, the Korea University Business School established the ESG Research Center (Center Director: Jae Hyuk Rhee), the first of its kind in Korean universities, which was later formally promoted to the ESG Research Institute in March. As an officially recognized research institute, the ESG Research Institute gained momentum to conduct extensive ESG-related research, develop educational content, and address research demands from public institutions and industries. In light of this, the Business News Agency conducted an in-depth interview with Jae Hyuk Rhee, who has been leading the ESG Research Institute since its establishment. 

Q. Who is Jae Hyuk Rhee, the Head of the ESG Research Institute? 

A. Jae Hyuk Rhee is a professor at Korea University Business School, responsible for teaching ESG management, international management, and business strategy. He is also actively involved as the chairman of various ESG committees for companies and organizations, including LG Group and academic pension funds. 

Q. Is there a reason for your interest in ESG? 

A. In 2008, during my first year of research, I visited Ohio State University in the United States, where the term ESG did not even exist in Korea at that time. In the US, various research and projects related to sustainability were already thriving. Interacting with various researchers there, I became convinced that ESG would become a new source of determining a company's competitive advantage. Especially from a global strategic perspective, I thought ESG would hold significant implications for Korean companies. That's when I started studying ESG in earnest. 

Q. What led you to take on the position as the Head of the ESG Research Center? 

A. I was appointed to contribute to the activation of ESG research and the cultivation of ESG experts at Korea University Business School. Professor Johngseok Bae, the former dean of the Business School, asked me many questions about the necessity of university-level ESG research and education. Through these discussions, he eventually proposed that I become the director of the ESG Research Center, the predecessor of the ESG Research Institute. Those questions were a crucial turning point for me. 

Q. What role does the ESG Research Institute play at KUBS? 

A. The primary goal and purpose of the ESG Research Institute is to build consensus on ESG and share related knowledge. Therefore, the main target audience for the ESG Research Institute is the students studying at KUBS. We offer various programs that can help students pursue careers in the field of ESG. For example, the ESG Research Institute organizes global ESG forums, joint research between industry, academia, and research institutes on ESG, and research competitions for undergraduate students. We want to support students in becoming ESG experts and making a difference in society. 

Q. ESG management in public institutions is becoming more active. Why is ESG important for public institutions? 

A. ESG is a set of indicators used by various stakeholders, including investors, to assess the sustainability of a particular company. As a result, private companies were the first to show interest and actively respond to ESG. However, interest in ESG is also increasing within educational institutions, such as universities, and this trend is spreading to small and medium-sized enterprises, venture companies, and even foreign companies that have entered Korea. Public institutions are no exception. As evident in the case of the Korea Land & Housing Corporation (LH), which highlighted the lack of ethics among its employees, ESG and sustainability are critical management issues for public institutions as well. 

However, the methods of assessing sustainability and the corresponding results for public institutions vary significantly depending on the government's policies. Based on the K-ESG guidelines developed with support from the Ministry of Trade, Industry, and Energy in 2021, I am currently working on a project to develop sustainability assessment indicators for public institutions. The impact of public institutions on Korean society cannot be ignored, and many students aspire to work in public institutions. Hence, ESG management in public institutions is crucial. 

Q. How would you describe the ESG Research Institute in one word? 

A. I would like to say, "The ESG Research Institute is a knowledge platform." Our ESG Research Institute offers various programs, including special lectures and research competitions, as well as inviting foreign scholars and conducting lecture series. Given the wealth of ESG-related knowledge accumulated in the ESG Research Institute, I hope students can visit anytime to gain insights into ESG-related matters. I also encourage them to actively participate in the ESG Research Institute's programs and contribute their knowledge to its development. I expect the ESG Research Institute to become a knowledge platform for students interested in ESG and contribute to KUBS in nurturing the next generation of societal leaders. 

Q. What are the plans and aspirations for the ESG Research Institute in the future? 

A. Going forward, discussions on ESG will continue to expand among various stakeholders involved in "management," not only in companies and universities but also in small and medium-sized enterprises, venture companies, and foreign companies operating in Korea. The evaluation methods for each stakeholder will also become more sophisticated. For example, while most Korean companies are currently considering carbon neutrality, many foreign evaluation agencies are already emphasizing the importance of carbon negativity. Thus, the evaluation of a company's sustainability is constantly evolving, and it is crucial for various economic entities in Korea to keep up with this trend. 

However, with the wealth of knowledge, expertise, and network possessed by the ESG Research Institute, I want to proactively propose what diverse economic entities in Korea should pursue in the future. My personal hope is that through this process, the ESG Research Institute can lay the groundwork to become a representative research institution in the field of ESG.