Korean investors enhance ESG contribution in Laos

The investors of the Republic of Korea will further promote the Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) in Laos in order to pursue Laos’ sustainable growth.
The plan was mentioned by Ambassador of the Republic of Korea to Laos, Mr JUNG Yung Soo, during the “Korean Investors ESG Roundtable”.
The event, which was held in Vientiane on December 23, was hosted by the Embassy of the Republic of Korea, inviting 12 Korean investors, the Lao government and Korea Trade Investment Promotion Agency (KOTRA) Vientiane in order to review the CSR and ESG (Environment, Social and Governance) activities of Korean investors during 2022 and to discuss how to further increase their CSR and ESG contributions in Laos.

Dr Sthabandith Insisiengmay (fourth from left in first row) and Mr JUNG Yung Soo (fifth from left) join a group photo with officials and investors after the roundtable meeting in Vientiane on Friday.

The discussion was co-chaired by the Deputy Minister of Planning and Investment, Dr Sathabandith Insysiengmai and Mr JUNG Yung Soo.
There was a presentation on the Lao government’s climate change response and the macro-economic outlook on the path ahead by the Director General of the Ministry of Energy and Mines, Mr Chantho Milattanapheng, and the Deputy Director General of the Bank of the Lao PDR, Mr Chittakone Chittaphong.
In his opening remarks, Mr JUNG Yung Soo said: “I hope this occasion serves as an opportunity to share ESG activities of Korean investors, while brainstorming on the future direction for working together as a team with the Lao government to boost ESG practices in Laos.”
Dr Sthabandith Insisiengmay said, “Laos recognises the importance of investments from Korea and continues to assist investors through the One Stop Service of the Investment Promotion Department while the Republic of Korea has been ranked among the top five among 53 countries with investments in Laos, and it has diversified its investment sectors and contributed to the Lao economy”
The Chairman of the Korean Business Association, Mr KIM Pil Seong, made a presentation on ESG trends in Southeast Asia and ways to facilitate Korean ESG activities in Laos.
During the event, Korea companies from different sectors with a presence in Laos, such as BNK Capital Lao Leasing, Booyoung Lao Bank, DGB Lao Leasing, Good Neighbours Laos, Greengoods Company, KB KOLAO Leasing, KOWEPO-Lao International Company, SK Ecoplant, Solutek System Lao, T’way Air, and Welcome Leasing Lao Co Ltd, made presentations on their business and CSR activities in Laos.
A leading Korean financial leasing service provider in Laos, DGB Lao Leasing Co., Ltd. DGB donated USD 300,000 in 2019 to establish the first baseball stadium in Laos for youth has held Korean Ambassadors Cup Lao Baseball Tournament since 2021.
From February 24 to February 26 next year, DGB will sponsor the 1st DGB Cup Indochina Dream League in Vientiane, Laos. The company has also supplied education equipment to schools and donated US$ 45,000 to facilitate education and sport since 2017 and many more CSR activities. This year, DGB offered scholarships to local university students who taught foreign languages and music to elementary students. Next year, DGB will organize Global Volunteer Group and support Kaengpayang Primary School with education infrastructure improvement.
A financial leasing services, BNK Capital Lao Co. Ltd., also shared its ESG activities in Laos. BNK launched a mobile application to pursue a paperless society. Managing Director of BNK, Mr. KIM Yunshik, said: “In order to support the climate change response of Laos, we plan to apply carbon-neutral preferential rates from 0.2 percent to 0.5 percent when taking out loans such as the purchase of EVs and solar panels.” For the social contribution, BNK minimises differences in wages between genders and maintains a proper gender ratio. BNK also reduced the interest rate for student loans to help local students study with minimum financial burden. In terms of governance, all wages and income taxes for dispatchers from Korea are paid in the Lao PDR.
 The top financial group in the Republic of Korea, KB KOLAO Leasing, has carried out diverse CSR activities, such as providing support for the medical expenses for children suffering burns, offering daily necessities at schools for the disabled, and providing Covid-19 disease control items in Pakse. In terms of social contribution, KB has hired and educated over 350 employees over the last five years. CEO of KB Mr YI Sikyung, said: “In addition to practicing carbon neutrality, we plan to increase CSR activities towards the local community in need. In particular, as KB has entered the real estate business segment, we consider the climate change response when developing new real estate in Laos.”
 Korean startup engaged in the agricultural and livestock business in Laos, Greengoods, has transferred Korea’s advanced agricultural technology to small-scale farmers in Laos since 2016 and from 2021, it has established an ecosystem that produces safe food through support for capacity building of small farmers and management of epidemic prevention and control.
Dr Sthabandith Insisienmay urge Korean investors to contact the Ministry of Planning and Investment to share their suggestions and obstacles in the way of improving the Lao investment environment.
Mr JUNG Yung Soo added: “It was valuable to listen to Korean investors’ ESG and CSR activity plans, and learn of the possibilities for enhancing the commitment for the development of Lao society. I hold the discussion for further improve the Lao business environment, thus creating a best practice model to solve challenges faced by Korean investors. The Korean Government will search for potential cooperation connecting Korea’s ODA programme with Korean investors’ ESG activities to facilitate green growth projects and to increase social capital in Laos.”

By Times Reporters
 (Latest Update December 29, 2022)