Contents

Key Findings

ESG Finance Domestic & International Trend

Effort on Initiating ESG Finance

ESG Finance Status

South Korea’s ESG Finance Scale

ESG Finance Goal

ESG Loan

ESG Investment (SRI)

ESG Public Fun (SRI Public Fund)

ESG Financial Product

ESG Financial Bond

ESG Financial Taxonomy

Report Summary

Overall ESG Finance Scale

• As the end of year 2020, the South Korean Financial Institution’s ESG Finance Scale totals to approximately 492 trillion Won
• By types of ESG Finance Activities (ESG Investment 188 trillion Won, ESG Loan 184 trillion Won, ESG Product 62 trillion Won, ESG Bond 59 trillion Won)
• Comparing to year 2017, the ESG Finance has growth twice the amount, including ESG Investment and ESG Bonds
• ESG loan took up 80% of company’s loan and ESG Investment placed 54% of NPS (National Pension Service) up to 101 trillion Won
• By ESG Types (Environment 72 trillion Won, Social 219 trillion Won, Governance 0.2 trillion won, and ESG being 201 trillion won in total)
• Social (S, 44%) turned out to be 3 times higher than Environment (E, 15%)
• ESG Loan (129 trillion Won) and ESG Bond (43 trillion Won) took most of Social(S) related scale

ESG Finance Goal

• 32 Financial Institutions (27 Public, 5 Private) reported ESG Financial Goals
• 5 major financial institutions reported financial goals and out of public institutions, only NPS has not reported yet
• All the financial institutions located outside of the province has not yet reported their financial goals

Research and Analysis Method

▶ Survey Target: Survey was conducted on all public and private financial institutions in Korea.

▶ Survey Method:

• Public Financial Institution: Sent out a questionnaire to the agency in charge of the financial institutions through Rep. Yong Woo Lee, Member of the National Assembly.
• Private Financial Institution: Through Rep. Yong Woo Lee’s office, requested Financial Service Commission to provide data. The Financial Services Commission provided data from each financial company.

▶ Time Period: August – September 2021

▶ Request Data: Asset Status, ESG Finance Status by year, loan, investment, product, bond, target and goals status

▶ Survey Response Agency: Total of 132 Financial Institutions

▶ Analysis: Based on the information provided by the financial institutions and external data used from public offering funds and ESG bond issuance

문의: 유진호 연구원 (jinho.yoo@kosif.org)