NF, a leading oxygen supply system company, has announced a partnership with Buddtree Management Group (Buddtree) and Dowwells, a subsidiary specializing in international investment, legal, and tax advisory services, to introduce wellness oxygen supply systems in India.
This collaboration aims to address India's urgent air quality management needs and penetrate the burgeoning wellness market.
Dowwells, a key subsidiary of Buddtree, played a pivotal role in facilitating the agreement. Buddtree, a company renowned for advising Korean companies on India investments, market entries, and international dispute resolution, brings significant expertise to this partnership.
Mr. Lee Sang-gon, CEO of NF, said, "In India, NF is committed to realizing our mission of 'We Save Lives' by leading the wellness market with innovative oxygen solutions."
NF has demonstrated its capabilities during the COVID-19 pandemic by swiftly exporting and donating medical oxygen supply systems. Now, NF is expanding its product line to include wellness oxygen supply systems, leveraging its advanced manufacturing technology.
O2REX, NF's flagship product, delivers clean oxygen to homes, offices, and vehicles, enhancing indoor air quality and promoting better health and well-being.
Dr. Jeehye You, Managing Director of Buddtree, emphasizes that in India, Corporate Social Responsibility (CSR) activities are mandatory, and it is imperative for businesses to play a pivotal role in addressing air pollution, which is a pressing societal concern.
This partnership underscores NF and Buddtree's join commitment to addressing environmental challenges and promoting public health in India.
Recently, major countries around the world are strengthening CSR through various methods, including explicit institutionalization of corporate social responsibility (CSR). In India, CSR activities were legislated in 2014, and penalties related to CSR obligations have been included since July this year. As a result, companies that have entered or intend to enter India should identify them in advance and find ways to respond to them.
“ India is the first in the world to implement a mandatory CSR law, ” said You Ji-hye, a lawyer and CEO of Buddtree Management in India , at the ‘ Indian CSR Mandatory Act Amendment Briefing ’ held by KOTRA on the 27th . “We have recently introduced punitive provisions for companies that violate their CSR spending obligations.” “As a result, our companies entering the market need to be careful, ” he said .
Corporate CSR (Corporate Social Responsibility) is a series of stakeholder-based management activities promoted by direct and indirect stakeholders who are affected or influenced by corporate activities to meet the social obligations required of the company.
In India, it is mandatory for companies to spend 2% of their net profits on CSR.
India is emerging as a world factory after China. It is Korea's 11th largest trading partner and 7th largest export partner. Recently, trade volume has steadily increased and the number of companies entering the market has been increasing. As multinational companies enter the country more actively, Indian authorities are strengthening CSR in the country.
The Indian government added provisions for disclosure and mandatory CSR activities in Article 135 of the Companies Act in 2014. It is mandatory for companies to spend 2% of their net profits on CSR. Companies subject to CSR obligations are any of the following : ▲ net assets of 5 billion rupees ( about 80 billion won ) or more , ▲ total sales of 10 billion rupees ( 160 billion won ) or more , and ▲ net profits of 50 million rupees ( 80 billion won ) or more .
The company establishes a CSR committee composed of directors, and the CSR committee establishes a CSR policy and recommends it to the board of directors. In accordance with the CSR policy, the costs required for CSR activities must be proposed to the board of directors and the CSR policy must be constantly supervised.
The Board of Directors must spend at least 2% of the average net profit of the last three fiscal years on CSR activities , and must prioritize spending on nearby areas or business activity areas. If expenditure is not made, the reason must be specified in the Board of Directors report .
Starting in July of this year , punishment for companies and executives will be implemented for non-compliance with CSR obligations.
The Company Act, revised in July of this year , strengthened regulations by providing punishment provisions for failure to fulfill CSR obligations . If a company has not spent its CSR obligations and has no ongoing CSR projects, it must make contributions to a specific fund within 6 months from the end of the fiscal year .
If a company has not spent its CSR obligations and has an ongoing CSR project, this amount must be paid into the designated bank account within 30 days from the end of the fiscal year and must be disbursed within 3 years from the date of deposit in accordance with the company's CSR policy . If not implemented, this amount will be transferred to a specific fund within 30 days from the end of the third fiscal year .
Sanction provisions for non-compliance with CSR obligations were also added . If the CSR policy is not detailed in the board of directors' report or if the company does not fulfill its obligation to spend profits for CSR activities, the company will be fined 50,000 to 25 billion rupees ( 8 to 400 billion won ) . You may be imprisoned for up to a year or fined 50,000 to 500,000 rupees (800,000 to 800,000 won ) . On the other hand , there are no tax benefits for CSR expenditures.
Limited CSR activities recognized under the Company Act ... Need to discover CSR
CSR activities recognized under the Company Act are limited . CSR activities recognized by the Company Act are ▲ poverty eradication and public health promotion ▲ education and livelihood improvement projects ▲ promotion of rights and interests of women and the underprivileged ▲ ensuring environmental sustainability and ecological balance ▲ promotion of artistic activities such as restoration of cultural heritage ▲ support for the welfare of war veterans and their families ▲ sports These include training support , ▲ contribution to the national relief fund , ▲ participation in the technology business incubator fund , ▲ rural development projects, development of slum areas , and disaster relief .
Voluntary participation activities such as contributions in kind or volunteer work by companies and employees are not recognized as CSR activities.
There are three ways to use CSR funds: directly by companies, through contributions from the central government, or through NGOs . In the case of small and medium-sized businesses, several companies can gather together and create a common fund to operate CSR .
Attorney Yoo said that when using CSR funds through the government, there are many restrictions on using them through the state government, so they must be used through the central government . He went on to advise that, as CSR activities are limited, companies need a program to systematically establish and operate CSR plans, and that they need to focus on discovering creative CSR . Reporter Chae Min-seon, Medium Economy.
Reporter Chae Min-seon ( iscra79@junggi.co.kr )
The Korea Small and Medium Enterprise Association (KOSMA) collaborated with the South Korean Embassy in India and KOTRA to host the '2022 Management Strategy Seminar for Korean SMEs Entering India' on October 7, 2022, at the Gurgaon Leela Hotel. Conducted amid the Covid-19 pandemic, speakers covered key legal obligations and risks associated with corporate activities, including Company Law and Tax Law. Strategies to secure competitiveness of Korean SMEs entering India and insights into Indian culture to mitigate business risks were discussed as well.
Rockin’ Korea Co., Ltd., a production agency specializing in global cultural contents, announced on the 8th that it has signed a business agreement with Ko-Indo Trading and Buddtree Management to launch the K-webtoon platform "RKToon" in India and promote cultural content exchanges between Korea and India. KoInDo Trading is a company specializing in international trade in East and West Asia, including B2B and B2C event planning, e-commerce, and TV home shopping, and is a global advisory group specializing in investment, international transactions, M&A, law, and tax risk management in Korea, India and the Middle East.
"We promoted Korean cultural contents in the European market by signing MOUs with a number of local French art content producers and cooperating with the Korean Cultural Center in France by hosting the Korean webtoon exhibition 'EXPOSITION K-WEBTOON' held in France in September," a Rockin Korea Co., Ltd. official said. "We plan to promote Korean webtoons and cultural contents in the Indian market of 1.4 billion people and work as a bridgehead for culture between the two countries through MOUs with local companies in India to produce and launch the K-webtoon platform 'RK Toon'.
Meanwhile, the K-webtoon platform "RK Toon," which was launched on Nov. 1, was produced with the support of the Korea Creative Content Agency and KOTRA and serves works by legendary Korean writers such as Won Soo-yeon, Kang Kyung-ok and Nayeri in Korean, English and Hindi. An official said that it is highly anticipated that it will present the secondary business potential of IP in India, where the film industry is developed, by expanding its scope to the drama imaging business of the original webtoon IP.
Reporter Lee Ji-yeon
Provided by Rockin Korea Co., Ltd
Source: Daily Economy (http://www.kdpress.co.kr )
http://www.kdpress.co.kr/news/articleView.html?idxno=116182
On November 11, The Consulate General of Korea in Chennai organized a seminar for ‘companies entering the Indian market,’ inviting representatives from approximately 20 companies, including Hyundai Motors, Samsung Electronics, Lotte Confectionery, Doosan Babcock, Shinhan Bank, Hana Bank, and Woori Bank.
During the event, Dr. Jeehye You, MD of Buddtree, shared insights on ‘India’s CSR regulatory trends and response strategies.'
Last October, the consulate had previously held a virtual seminar for companies entering the market but, this seminar was held in person. Furthermore, the presentation materials from this seminar has been incorporated into the recent 'Guide to Entering South India' published by the consulate.
Copyright © World Korean News
NOV 11, 2020
India is the trend. The Korea International Trade Association held seminars and briefing sessions in Korea and KOTRA in India respectively to enter the Indian market.
The Korea International Trade Association held the ‘Indian Market Marketing Strategy Seminar’ at the Trade Tower in Samseong-dong on the 19th. At the seminar, essential information for companies wishing to expand into India was shared, including characteristics of India's consumer market, marketing strategies, major tax laws and recent trends, logistics environment, and customs clearance strategies.
Dr. Yongsik Kim of POSCO Management Research Institute said, “India has continued to grow at a high rate of 7% since 2014 thanks to Prime Minister Modi’s strong leadership and is an attractive market with an abundant labor force of 1.3 billion people and a huge domestic market.” “There are management difficulties such as market structure, so our companies need a long-term strategy to develop Indian experts,” he emphasized.
“With the need for export diversification growing due to the recent uncertain global trade environment, India is an important market that our companies cannot afford to miss,” said Kim Hyun-cheol, head of the Global Marketing Division of the Korea International Trade Association. “We will pursue it,” he said.
Prior to this, on the 17th, KOTRA and the Korean Embassy in India held a briefing session on the revision of the Indian CSR Mandatory Act in New Delhi, India. About 20 large companies, including Samsung Electronics and LG Electronics, as well as mid-sized companies operating in India, participated in the briefing session, which was designed to listen to the voices of Korean companies operating in India and find solutions.
India is the first country in the world to implement a mandatory 'Corporate Social Responsibility (CSR)' law. With the recent introduction of punitive provisions for companies that violate their CSR spending obligations, Korean companies need to be careful. Last July, India amended its corporate law to require financial and physical sanctions for violations of CSR obligations.
CSR, which was usually promoted voluntarily by companies, was made mandatory by law in India in 2014, but until now, voluntary participation has been encouraged. In July of this year, Article 135 of the Companies Act was revised, requiring companies to spend 2% of their average net profit over the past three years on CSR activities. Otherwise, you will be forced to deposit it into a specific fund required by the government.
Additionally, if the fund funds are not used within 3 years, they will automatically be transferred to the Indian treasury. Companies that violate their obligations must pay a fine of up to 2.5 million rupees (equivalent to 40 million won), and company executives can be imprisoned for up to three years or fined up to 500,000 rupees (equivalent to 8.3 million won). This CSR law is applicable even if only one of the following criteria is met: sales (more than $100 million), net assets (more than $70 million), and net profit (more than $700,000).
Multinational companies operating in India are expressing their position that mandatory CSR measures are a kind of quasi-tax, while they are busy formulating countermeasures in response to changing conditions. Company A, who attended the briefing session, said, “It has not been mandatory so far, but a clear understanding of CSR is urgently needed due to recent law revisions.” Company B expressed the opinion, “I wish the government would support communities that can manage funds together rather than individual companies engaging in CSR activities.”
KOTRA will publish a report titled ‘Trends in Strengthening CSR Norms in India and Countermeasures’ in September and distribute it at the ‘India CSR Mandatory Act Revision Information Session’ held in Korea on the 27th.
The Korean briefing session is jointly held with the New Southern Policy Promotion Committee, and its main target audience is Korean companies wishing to invest in India. Applications for participation can be made through the KOTRA website. Information on what to keep in mind when investing in India, including entry strategies into India and mandatory CSR laws, will be provided. To this end, an Indian investment and CSR expert will appear as a speaker. The Indian expansion strategy will be announced by Park Han-soo, former head of KOTRA's Southwest Asia regional headquarters, and the mandatory CSR law will be handled by You Ji-hye (American lawyer), CEO of Buddtree Management, a local law firm in India. Jaewon Jang, managing director of Ernst & Young India, will oversee matters to note when investing in India. Kim Sang-mook, head of KOTRA's Economic and Trade Cooperation Division, said, “CSR activities tailored to the needs of local society and companies are consistent with the New Southern Policy that pursues coexistence and prosperity,” and added, “We will further activate support for entering the local market through proper understanding of CSR regulations.” “I will do it,” he said.
Reporter Kim Young-chae.
