ESG Management Adoption Strategies for Korean SMEs: Focusing on Global Case Studies

ESG (Environment, Social, Governance) management has emerged as an essential strategy in the modern corporate environment for ensuring sustainability and competitiveness. Beyond mere corporate social responsibility, ESG management serves as a critical driver of long-term corporate growth and investor trust, especially as global challenges such as climate crises, social inequality, and demands for corporate transparency intensify. However, small and medium-sized enterprises (SMEs) face structural challenges in adopting ESG management. Limited resources, the burden of initial costs, a lack of skilled personnel, and insufficient systematic support hinder SMEs from effectively integrating ESG practices. (1) Background/Purpose: This study explores strategies to overcome these challenges by examining the theoretical foundation and significance of ESG management, reviewing prior studies to identify the primary challenges SMEs encounter, and proposing policy approaches and support frameworks required to address these challenges. (2) Study Design/Methodology/Approach: Based on case studies using MSCI ESG Ratings, EcoVadis, and the Korea ESG Standards Institute evaluations, the study examines companies such as Vestas Wind Systems, Ball Corporation, Orsted A/S, First Solar Inc., Milliken & Company, Pulmuone, and Hanssem. (3) Findings: Three essential conditions for successful ESG adoption in SMEs were identified: financial support from government and public institutions to alleviate initial costs; establishment of collaborative networks with stakeholders; and provision of systematic and continuous education and consulting. (4) Originality/Value: This study presents concrete strategic recommendations including financial incentives, collaborative network development, and tailored support programs to facilitate ESG implementation among Korean SMEs.