Balancing profitability and carbon reduction: an interview with Chung Ji-hoon

From investing in renewable energy and improving energy efficiency to developing recycled and low-carbon materials, more businesses are gradually exploring ways to balance profitability with environmental responsibility. In this interview, Samyang Corporation's finance executive Chung Ji-hoon shared insights on the company's carbon neutrality roadmap, ESG investments, and the business value of sustainability.

First, could you tell us a little about the work you’re currently doing at Samyang?

I currently work in the Accounting Team within the Finance Department at Samyang Corporation. The Finance Department at Samyang Corporation provides support for the accounting, tax, and treasury operations of each subsidiary. As the team leader, I am responsible for the accounting, tax, and treasury operations not only for Samyang Corporation itself but also for the holding company, Samyang Holdings, and various subsidiaries in the chemical sector.

Within the scope of what you know, what efforts the company is making to achieve the carbon emission reduction targets?

Currently, our group is not acting solely through Samyang Corporation but is proceeding at the group level. The Samyang Group has established a “2050 Carbon Neutrality Roadmap” and is working toward its 2030 target of reducing emissions by 42% compared to 2020 levels. Our approach involves developing strategies tailored to the specific characteristics of each business site and conducting regular reviews. Additionally, our factories are using ICT-based management systems to achieve real-time energy savings. That’s the general overview.

As you mentioned, many other companies are currently focusing heavily on energy conservation, such as by using renewable energy. Does Samyang have any direct projects related to improving energy efficiency or recycling?

As far as I know, one of our affiliates, Samyang Eco-Tech, collects waste materials, cleans them thoroughly, and then processes them into recycled pellets. These are used in the production of our PET bottles or to manufacture lower-grade plastics. In this way, the affiliate itself operates with a strong focus on environmental sustainability.

As for specific projects, we’ve been introducing renewable energy. As of 2024, we have solar panels operational at a total of seven facilities. Additionally, across all facilities—including Incheon Plant 1 and Ulsan Plant 1—we’re investing in equipment upgrades to replace outdated lighting with high-efficiency LEDs and to replace aging transformers with the latest hybrid transformers.

It seems you’re investing in various ways, and you’re also using a lot of recycled polycarbonate and other eco-friendly recycled materials. From the management team’s perspective, how do you view the impact of these eco-friendly, recycled products on performance and long-term value?

For now, Samyang is expanding its lineup of eco-friendly products, such as the recycled polycarbonate you mentioned, to build a sustainable business model. For example, as customer demand for carbon emission reduction surges, our entry into the eco-friendly product market is estimated to be worth approximately 310 billion won.

Furthermore, in terms of innovative materials, we are strengthening our business portfolio through products such as transparent flame-retardant polycarbonate—which does not emit toxic gases when burned—and isosorbide, a compound derived from corn.

It looks like these efforts are having a positive impact on the company’s performance in various ways, and your sustainability report received a very high rating for climate change response. What do you consider to be the most significant effort you’re making to continuously manage these ESG metrics?

We have established an ESG governance framework and, centered on the ESG Committee under the Board of Directors, we operate separate Management and Working-Level Committees to manage strategies and risks. Additionally, we have introduced ESG KPIs; starting in 2025, these KPIs will apply to all executives, linking performance in areas such as greenhouse gas reduction and safety restoration efforts to performance evaluations to strengthen accountability.

Looking ahead, if we were to achieve a more comprehensive carbon neutrality goal, there would likely be areas where investment allocations increase. If such areas exist, where do you see them, and do you have any thoughts on how you might address the resulting increase in investment allocations?

Currently, the market size for recycling-related businesses is not that large across our entire operations, but in the future, as more environmental regulations are introduced at the government level, the mandatory quotas assigned to our business partners—the entities we sell to and buy from—will gradually increase. When that happens, I believe our group companies can secure a stronger position in that sector and capture a share of sales and profits. Therefore, no matter how much we invest, compared to our previous, somewhat outdated , it would be more advantageous from a business perspective to increase the proportion of investment in production facilities related to carbon reduction.

Finally, how do you currently assess the economic viability of such ESG investments?

In terms of economic viability, our report does not place particular emphasis on these results or expected effects. However, based on the actual figures listed in the report—such as annual power generation and carbon reduction—we anticipate that our seven affiliated companies will be able to reduce power consumption by 3,700 megawatts across their seven facilities and achieve an annual carbon reduction of 1,828 metric tons. We believe there will be economic benefits resulting from these reductions .