Companies bolster CSR to improve brand image abroad

The Korea Times

The Korea Times

Business

Tue, September 26, 2023 | 04:35

Companies

Companies bolster CSR to improve brand image abroad

Posted : 2023-06-10 08:18

Updated : 2023-06-11 10:57

HiteJinro CEO Kim In-gyu delivers 400 million dong ($17,000) in scholarship funds to 20 college students at Melia Hanoi in Hanoi, June 5. Courtesy of HiteJinro

By Kim Jae-heun

A growing number of Korean companies are expanding their corporate social responsibility (CSR) activities in Vietnam and other emerging markets as they seek to improve brand reputation and boost business presence, according to industry officials.

The country's largest liquor firm HiteJinro delivered 400 million dong ($17,000) to a total of 20 college students in Vietnam, June 5. The company provided 20 million dong to each of the selected students studying at the University of Languages and International Studies and Hanoi University.

Since the establishment of its local branch in Hanoi, the liquor firm's best-selling soju products Chamisul and Jinro have caught on with young consumers there, showing an annual growth of 15 percent. In 2021, HiteJinro's sojo products ranked No. 1 in the local spirits market, according to global market research firm Euromonitor.

"We started CSR activities to target local consumers and we are conducting other marketing activities as well. CSR campaigns are a good way to contribute to the local community while promoting our soju products," a HiteJinro official said.

KT&G Vice President Lee Sak-hak, third from right, applauds with Korean Consulate General of Almaty Park Nae-chun, first from left, and other officials at the opening ceremony of a Korean language school in Almaty, Kazakhstan, June 3. Courtesy of KT&G

The nation's leading tobacco maker KT&G recently opened a Korean language school in Almaty, Kazakhstan.

Currently, there are more than 100,000 ethnic Koreans living in Kazakhstan, whose ancestors were forcefully relocated there from the Russian Far East in 1937.

KT&G plans to foster global experts with Korean language education and scholarship programs for the local ethnic Korean community and Kazakhs.

In 2014, the tobacco firm established its first Korean language institute in Indonesia, educating 2,800 students so far.

In 2017, the company also founded Sang Sang University Jakarta in Indonesia to take the lead in spreading Korean culture by supporting cultural and artistic experiences as well as competency development activities for local college students.

"We have carried out various social contribution activities in overseas countries such as Indonesia and Turkey to fulfill our responsibilities as a global corporate citizen. Through the KT&G Korean Language School, we hope to act as a bridge between Korea and Kazakhstan in promoting exchange and friendship," KT&G Vice President Lee Sang-hak said.

BGF Retail, operator of the country's largest convenience store CU, is running iCU, a child disappearance prevention system in Mongolia.

Mongolia is one of the countries where the retailer has achieved huge success, opening 300 stores as of May. CU has become the No.1 convenience store brand there with a 70 percent market share after only four years since it entered Mongolia in April 2018.

About 32 percent of Mongolia's population is under 14 and BGF Retail has adopted iCU to prevent children from disappearing by utilizing its convenience stores across the country. The company said there are 10 times more CU stores than police stations in Ulaanbaatar and they help a lot in finding missing children.

Furthermore, iCU also helps with preventing child abuse by assisting people to contact the police with a point-of-sale system installed at convenience stores.

CJ CheilJedang's Social Contribution Committee Director Min Hee-kyung, second from right, poses with Chief of UNESCO's Education for Inclusion and Gender Equality Section Justine Sass, left, and other officials during the launch of the We Are ABLE Phase 2: Achieving Better Living and Education project in Hanoi, March 28. Courtesy of CJ Group

CJ Group, together with UNESCO, launched the We Are ABLE Phase 2: Achievement Better Living and Education for Vietnamese minorities, who are alienated from high-quality education, in March.

The project began in 2019 to expand access to education and employment opportunities for female Vietnamese minorities.

CJ will provide the education program with $250,000 (3.26 million won) from funds raised by the CJ-UNESCO Girls' Education Campaign.

Samyang Group donated 300 million won to the Community Chest of Korea, part of which will be used to support youth independence in developing countries.

"In many developing countries such as Vietnam and Indonesia, people in their 20s and 30s have become the main consumer group to lead society. Local retailers are continuing to engage in CSR activities to support local communities while increasing their brand reputation," a local retail firm official said.

jhkim@koreatimes.co.kr