Events Recap

On March 10, the Korea Sustainability Investing Forum (KoSIF, serving as the CDP Korea Secretariat) hosted the 2026 CDP Korea Conference at the Ambassador Seoul Pullman Hotel. Centered on the theme of "Transition," this conference brought together diverse stakeholders across corporate, financial, and policy sectors to discuss actionable strategies for executing the shift toward a low-carbon economy.

In Breakout Session B, titled "The Role of Finance for K-GX (Korea-Green Transformation) Strategy: Focusing on Transition Finance," three key presentations were delivered. As the necessity for a phased transition in carbon-intensive industries, such as steel, petrochemicals, cement, and power generation, grows during the net-zero implementation process, discussions focused on examining practical gaps in transition criteria and application methods among policymakers, financial institutions, and corporations ahead of the release of domestic transition finance guidelines.

Presentation by Jeong-seop Yeom, Division Head at the Ministry of Climate, Energy and Environment

First, Jeong-seop Yeom, Division Head at the Ministry of Climate, Energy and Environment, presented on "The Significance of Introducing Transition Finance and Strategies for Early Adoption." Yeom noted that because the domestic economy is heavily structured around manufacturing with high proportions of carbon-intensive industries like steel and petrochemicals, achieving net zero solely through green finance is difficult. He revealed that the Ministry of Climate, Energy and Environment has launched a public-private joint K-GX Task Force and plans to announce the K-GX Strategy in the first half of the year. Yeom emphasized the policy necessity of establishing a full-fledged transition finance framework alongside green finance. He concluded his presentation by outlining plans to expand fiscal and financial support for transition finance while encouraging private sector participation.

Presentation by Nam Young Park, Head of ESG Finance Department at KoSIF

Second, Nam Young Park, Head of ESG Finance Department at the Korea Sustainability Investing Forum (KoSIF), presented on "The Dual Structure of ESG Finance and Fossil Fuel Finance." Park pointed out that despite the rapid expansion of ESG finance, the carbon trajectory of the real economy has not changed significantly, highlighting the need to revitalize the transition finance market through the integration of public and private finance. To achieve this, she emphasized that establishing clear standards and disclosure frameworks while separately categorizing transition sectors within the current taxonomy is paramount. She concluded by stating, "Transition finance does not replace green finance but serves as a complementary mechanism; a substantive decarbonization transition is achievable only when both types of finance expand together."

Presentation by Ji-hyun Kim, Senior Manager at Shinhan Financial Group

Third, Ji-hyun Kim, Senior Manager at Shinhan Financial Group, presented on "Transition Finance Execution Cases and Challenges from a Financial Institution Perspective." Kim shared that Shinhan Financial Group is undertaking various initiatives to activate transition finance, including developing internal classification standards, issuing transition bonds, and benchmarking international practices. He particularly noted that expanding transition finance requires not only clarity in standards but also incentive structures and management frameworks that can be utilized in the field. Kim concluded by emphasizing that both active participation from financial institutions and policy support from the government are concurrently required to establish transition finance.

The seminar highlighted transition finance not merely as a new financial product, but as a core policy tool connecting industrial restructuring with the role of financial markets during the net-zero transition process. The session concluded by noting that for transition finance to function effectively in the future, efforts to clarify policy standards must go hand-in-hand with strengthening incentives within the financial market.