Research Article
The Practice of Warm Capitalism with Consideration: Mirae Asset Daewoo SRI (Socially Responsible Investment) Case Study
1 Kwangwoon University, 2 Sungkyunkwan University
Published: January 2019 · Vol. 23, No. 3 · pp. 23-48
DOI: https://doi.org/10.17287/kbr.2019.23.3.23
Full Text
Abstract
This study reviews the concept and importance of socially responsible investment (SRI), examines the theoretical background related to SRI, and explores how global companies use it. And then, through the case of Mirae Asset Daewoo, we aim to draw out the implications and suggestions on how to spread SRI to domestic companies. In this process, this study examines how Mirae Asset Daewoo is leading SRI, and analyzes the case of Mirae Asset Daewoo to diagnose the possibility of a new direction of SRI suitable for domestic companies. Unlike SRI developed countries such as the US, Europe, and Japan, domestic SRIs are estimated to have a short history and a very small size. However, given the ever-increasing trend of SRI globally, the size of the domestic market is expected to increase more than now. Therefore, although it is at an early stage, looking at the case of Mirae Asset Daewoo is very likely to lead to Korean companies setting up SRI. Socially responsible investment (SRI) is distinguished from general investment in that SRI is made from a long-term perspective considering three non-financial factors: ESG (environment, society and governance). In addition, the recent market demand has led to the improvement of the related legal system to activate the SRI of public pension funds as the role of public pension funds becomes important. The SRI case of Mirae Asset Daewoo, a leading SRI company in the domestic financial market, has a great deal of implications for Korean companies in close relationship with their parent companies and subsidiaries. Mirae Asset Daewoo conducts a variety of social contribution activities in addition to SRI by systematically cooperating with its affiliates under the banner of “Warm Capitalism Practice with Consideration.” And Mirae Asset Daewoo's case provides insight into companies in analyzing SRI success conditions under a typical Korean corporate structure. Mirae Asset Daewoo was able to successfully implement SRI through transparent corporate governance, thorough risk management, and extensive investment experience in domestic and overseas markets. This case shows the significance and importance of SRI especially for Korean companies that are aiming at global companies.
