Abstract

This study used text mining techniques to collect keyword data from the sustainability reports of companies listed on the Korean and Japanese securities markets, ranked 1 to 3 by market capitalization, and conducted word cloud analysis, frequency analysis, ego network, and N-gram analysis. The purpose of this study is to benchmark the ESG management of companies in Japan, which has secured a high amount of ESG investment compared to Korea, by comparing issues with Japan, which has been mentioned as a leading country in ESG management based on the amount of investment and historical aspects of ESG management in various studies. In addition, the ESG management direction of Japan is used to predict the future ESG management direction of Korea and suggest directions for Korean companies.
 In the analysis of the frequency of keywords that can identify ESG issues in Japan and Korea, Korea and Japan are similar, and among the keywords with high frequency and importance, we analyzed the keywords with high co-occurrence frequency such as management, employee, and environmental, and found that the management keyword is similar, and from the employee keyword, childcare and diversity keywords appear as co-occurrence keywords in the Japanese analysis. In Korea, the keyword supplier was found in the environment and employee management keywords. In addition, the N-gram analysis, which can check the frequency of linked keywords, showed that the frequency of governance-related keywords was higher in Japan than in Korea.
 This study has academic and practical significance in that it compares the direction of ESG management in Korea through direct comparison with large companies in developed countries through literature studies and keyword analysis, and suggests directions and complementary points for Korean companies.

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