Ministry of SMEs and Startups recruits companies to participate in the 'Supply Chain ESG Innovation Project'

The Ministry of SMEs and Startups (Minister Oh Young-joo, hereinafter referred to as the Ministry of SMEs and Startups) announced that it will recruit companies to participate in the 'Supply Chain ESG Innovation Project' from February 25 to March 25.

The EU Supply Chain Due Diligence Directive is a system that requires companies above a certain size (export volume of approximately KRW 2.1 trillion as of 2027) to conduct due diligence on the environmental and social impacts in their supply chains. The scope of companies subject to the obligation will be gradually expanded from 2027. Target companies must identify and address negative environmental and social impacts throughout their supply chains and disclose the results of their implementation of the Supply Chain Due Diligence Directive. If the obligation is violated, the list of violators will be disclosed and a fine (up to 5% of sales) will be imposed.

This project is the first of its kind this year, and is intended to effectively support SMEs collaborating within the supply chain in response to the implementation of the EU Supply Chain Due Diligence Directive. The project is an integrated announcement of the ‘Establishment of a Base for Climate Disclosure and Supply Chain Due Diligence Response’ project and the ‘Public-Private Joint Strategic ESG Support’ project.

First, 'Establishing a climate disclosure and supply chain due diligence response foundation' is a diagnosis and consulting business ('3 billion won in 25 years) utilizing the ESG platform. The selected primary company's cooperative SMEs can diagnose their vulnerable areas according to the ESG evaluation indicators presented by the primary company through the ESG platform and check their own ESG level within the supply chain. In addition, ESG management evaluation experts visit the company directly to provide in-depth diagnosis such as education, consulting, and certification acquisition.

Next, the 'Public-Private Joint Strategic ESG Support' is a voluntary project support project (KRW 2 billion by 25 years) in which large companies and SMEs jointly perform ESG activities. Large companies that have contributed to the Mutual Cooperation Fund can voluntarily recruit cooperative SMEs and apply for projects, and various types of support are available, such as EU supply chain audits, greenhouse gas verification, ESG information disclosure, and eco-friendly process consulting, depending on the ESG needs of each company.

Starting with the announcement of the two integrated projects, we plan to hold briefing sessions for large companies, including those subject to the EU supply chain due diligence guidelines, and conduct additional screenings for small and medium-sized enterprises selected for the project to introduce carbon reduction facilities and provide policy fund loans.

Detailed information on the supply chain ESG innovation project recruitment notice can be found on the website of the Ministry of SMEs and Startups, the ESG integrated platform , and the website of the Joint Growth Committee .

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