Balancing Local Context and Global Standards

• In Event: Reforming and Renovating Local Governments in South Korea

Abstract

Background

Environmental, Social, and Governance (ESG) indicators have become pivotal to shaping sustainable investment, regulatory frameworks, and organizational behavior. While scholarly and policy discussions surrounding ESG assessment frameworks have expanded significantly, the majority of existing literature has primarily focused on market-based models. Notably, empirical studies exploring state-led ESG frameworks remain limited, especially in institutional settings where the public sector plays a prominent role in shaping sustainability standards. Korea’s government-initiated K-ESG guideline provides a unique case to investigate how a policy-driven ESG framework manages the inherent tension between domestic institutional mandates and global isomorphic pressures.

Purpose

This study aims to analyze how Korea’s K-ESG framework balances local contextual relevance with alignment to globally recognized ESG frameworks, including MSCI, Sustainalytics, S&P Global, and FTSE Russell. We assess the extent to which K-ESG serves as a credible and effective evaluative instrument across both public and private sectors, while also maintaining legitimacy within the global ESG institutional field.

Methods

Our study employs a qualitative content analysis of the K-ESG guideline and selected international ESG frameworks through a systematic document review and structured coding schema. The comparative analytical framework evaluates.
- Composition and structure of ESG indicators
- Degree of indicator disaggregation
- Weighting and standardization methodologies
- Integration of governance components
- Stakeholder engagement and policy alignment

We further conduct application-based analyses using representative indicators from each framework to identify convergence and divergence in assessment outcomes across public agencies and private enterprises.

To guide this inquiry, we develop a multi-level conceptual framework grounded in institutional and governance theory. This framework distinguishes among:
- Macro-level: external institutional environments
- Meso-level: stakeholder interactions
- Micro-level: organizational implementation capacities

Conclusion

Our research contributes to emerging scholarship on ESG institutionalization by offering a refined understanding of how a state-led ESG framework can reconcile the dual imperatives of local relevance and global legitimacy. The findings suggest that national ESG systems can be designed not only for international recognition but also for contextual responsiveness ensuring adaptability to domestic policy dynamics while remaining consistent with international ESG norms.

Authors

• JungHwan Ryu, Research Center for Public Human Resource Development / SungKyunKwan University
  Presenting Author

• Sungyeop Kim, University at Albany
  Non-Presenting Co-Author

• Gabeen Lee, University at Albany
  Non-Presenting Co-Author