Implementing Environmental, Social, and Governance Standards in South Korea: Policy Implications for Vietnam

Abstract

The Environmental, Social, and Governance (ESG) standards have become a widely recognized and highly important concept for businesses worldwide. In South Korea, ESG standards have been institutionalized through national policies, notably the enactment of the Green Growth and Carbon Neutrality Act, the implementation of the K-Taxonomy system, and the issuance of the K-ESG Guidelines. These policies are being implemented, with initial positive results recorded in guiding the sustainable development of the business sector. In Vietnam, the ESG implementation still faces numerous difficulties and challenges due to the lack of a standardized system, insufficient data, and the absence of a coherent legal framework. This paper analyzes South Korea’s experience in implementing ESG and draws several policy implications to promote ESG application in line with the development practices of the Vietnamese enterprises.