Including Samsung Electronics, Lotte Chemical
Korea Corporate Governance Service (KCGS) announced on July 13 that it has lowered the ESG management grades of Samsung Electronics, Lotte Chemical, HDC Hyundai Development Company, Korea Zinc, Central Insight, Asiana IDT, Air Busan and Asiana Airlines.
The ESG management grade of Samsung Electronics was lowered from B+ to B as its G grade was lowered from B to C. The Korea Fair Trade Commission’s accusation and fine imposition related to Samsung Welstory affected the grades.
The G grades of Samsung SDI and Samsung Electro-Mechanics fell from A to B+ for the same reason. However, their overall ESG management grades did not change from A.
The overall grade of HDC Hyundai Development Company fell from B to C with regard to its recent building collapse accident in Gwangju. The G grades of Asiana IDT, Air Busan and Asiana Airlines fell and their overall grades fell from B to C with former Kumho Asiana Group chairman Park Sam-koo arrested and charged for a violation of the Monopoly Regulation and Fair Trade Act.
The overall grade of Central Insight fell from B to C with regard to an embezzlement scandal. Those of Lotte Chemical and Korea Zinc fell from A to B+ and from B+ to B for repeated illegal air pollutant discharge and repeated fatal industrial accidents, respectively.
In addition, the S grade of Naver fell from A to B+ with regard to in-house bullying incidents and that of GS Retail fell for its violation of the Large-Scale Retailers’ Fair Trade Practices Act. That of Namyang Dairy Products was lowered for illegal marketing and advertising and those of Daewoo E&C, Hyundai Steel and Korea Shipbuilding & Offshore Engineering fell for repeated fatal industrial accidents.
The ESG grades given by KCGS are divided into S, A+, A, B+, B, C and D. It carries out the grading every quarter.