SOUTH KOREA. Lotte Duty Free has signed a business agreement with the Korea Commission for Corporate Partnership (KCCP) to support small and medium-sized partner companies through the 2024 ESG Support Project for Partner Companies.
As reported last year, the travel retailer became the first in the industry to take part in this initiative.
Under the new agreement the company will donate KRW50 million (US$35,700) to the mutual growth cooperation fund.
In addition, ESG indicators tailored to each partner company’s needs will be developed based on the commission’s standard guidelines for small businesses. All partners will have access to online training, with ten selected for additional in-person training and on-site consulting.
After the consultation process, businesses with outstanding ESG compliance will be granted an ESG Excellence Certification for Small Businesses by KCCP.
Certified companies will receive incentives, including preferential loan rates from major banks (Shinhan, KB Kookmin, IBK and BNK Kyongnam) and support for overseas expansion from the Korea Trade-Investment Promotion Agency and Korea International Cooperation Agency.
Other benefits include consultation services and technical support in environmental and energy fields from the Korea Institute of Energy Research.
Lotte Duty Free has long been committed to sustainable growth through various initiatives with its partners. Since 2019, the company has allocated a KRW50 billion (US$35.8 million) mutual growth cooperation fund to assist small business partners with loan interest, in addition to offering support in areas such as recruitment, advertising and marketing events to drive business activities.
In July the company signed a cooperation agreement with the Small Business Distribution Center to support SMEs in expanding their sales channels.
Eight of these companies ran a pop-up store at Jeju Airport last month, and four leading performers have now been chosen for permanent listing, with sales launching in the same month.
Lotte Duty Free CEO Kim Ju Nam said: “We are pleased to once again lead in strengthening the competitiveness of our small business partners and practicing ESG management. Lotte Duty Free will continue to uphold mutual growth as a core value and make every effort to grow alongside its many partners.” ✈
