The Export-Import Bank of Korea has partnered with Samsung Electronics to support the transition of its overseas partners to renewable energy. This initiative is being hailed as a new collaborative model for large corporations, their partners, and policy finance institutions to establish a foundation for carbon reduction.
On June 3, the Export-Import Bank announced that it has signed a memorandum of understanding with Samsung Electronics and Partron, a key partner of Samsung, to enhance environmental, social, and governance (ESG) capabilities and strengthen cooperative efforts.
The agreement includes provisions for the Export-Import Bank to support consulting costs related to joint purchasing of renewable energy power purchase agreements (PPAs) for Samsung's small and medium-sized partners operating in Vietnam. Eleven small and medium-sized partners will work together to negotiate contracts for renewable energy purchases, with an energy consulting firm assisting throughout the process.
Samsung Electronics will identify and recommend partners to participate in the consulting project and will support their ESG management activities. Partron, representing Samsung's partners with a production subsidiary in Vietnam, has committed to ensuring active participation and compliance from its partners.
As global ESG regulations tighten, including the European Union's Carbon Border Adjustment Mechanism (CBAM) and Corporate Sustainability Reporting Directive (CSRD), the burden of securing renewable energy for small and medium-sized enterprises (SMEs) expanding overseas has increased. In response, Samsung is sharing its expertise in renewable energy procurement, and its partners in Vietnam have formed a joint purchasing consortium. The Export-Import Bank is providing support for the related consulting costs, establishing a collaborative model for carbon reduction involving large corporations, partners, and policy finance institutions.
Ahn Jong-hyuk, Executive Vice President of the Export-Import Bank, stated, "The ability of small and medium-sized partners to transition to environmentally friendly practices is now a key prerequisite for our companies' global competitiveness. We will actively support the ESG transition of SMEs."
* This article has been translated by AI.
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