Private equity fund (PEF) manager MBK Partners will officially launch a "social responsibility committee" on the 22nd to strengthen corporations' social responsibility and ESG (environment, society, governance) investment principles.
MBK Partners on the 13th said it was "a measure to meet social expectations as a private investment manager and to institutionalize a culture of responsible decision-making across all investment activities."
The Chairperson will be Lee Young-seong, former publisher and CEO-president of the Hankook Ilbo. The committee will consist of eight experts from various fields, including society, the legal community, and academia, such as Lim Seo-jeong, former senior secretary for jobs at the presidential office, Yoon Sung-uk, former second vice minister of the Office for Government Policy Coordination (OPC), and Kim Sung-sik, former judge at the Seoul District Court. To ensure the committee's independence and objectivity, it was formed mainly with external experts.
The committee will ensure that social responsibility is systematically reflected in the investment process and will review the impact on various stakeholders, including shareholders, executives and employees, customers, and partners. Its role is to minimize negative impacts while expanding positive contributions.
It will also establish an ESG monitoring system that meets international standards and pursue communication to specify the standards for fulfilling the social and economic roles and responsibilities of private equity.
In particular, the committee will deliberate and advise on social responsibility issues among major decisions by MBK Partners and its portfolio companies, and will plan to continuously review key items such as job stability, fair trade, and environmental management through ESG metric setting and annual evaluations.
If a social issue arises, it also has the authority to independently convene an emergency review, present a response direction, and formally request improvements from the board of directors and management. It also plans to publish a report at least once a year detailing its activities and ESG performance.
Chairperson Lee Young-seong said, "The committee plans to play a role in establishing social responsibility not as a simple norm but as a value that operates substantively throughout the entire investment process," adding, "Experts from various fields will work together to seek a direction in which investment activities are in harmony with social values."
An MBK Partners official noted, "The launch of the social responsibility committee is part of our effort, as a private investment manager, to fulfill our fiduciary duties under the principle of good faith and to reflect on the impact of corporations' activities on society at large," emphasizing, "MBK Partners will grow into an asset manager that drives positive change not only in investment performance but also for people, communities, and the environment as a whole."