Resources

2024 Korea ESG Finance White Paper

Korea Sustainability Investing Forum (KoSIF, Chariman Young-ho Kim) and the office of the National Assembly Member Byoung Dug Min have published the ‘2024 Korea ESG Finance White Paper,’ which aggregates and analyzes the ESG finance figures of 167 domestic financial institutions (public-68 and private-99). 

According to the report, Korea’s ESG finance market has more than doubled since 2019, reaching a total of KRW 2,012.6 trillion and maintaining a steady upward trend. However, with the annual growth rate slowing to 8.9%, this suggests that the focus must now shift from quantitative expansion to qualitative expansion. In particular, structural characteristics such as growth driven by the public sector, heavy concentration in the (S) social category, and a decline in the private sector were identified. 

This White Paper goes beyond simple scale to provide a comprehensive analysis by type including investments, loans, bonds, and financial products while examining key issues such as transition finance, green lending guidelines, RE100 finance, and LNG finance. It also presents policy tasks for establishing sustainability disclosure standards and transition finance frameworks.

[Table of Contents] 

Preface 

 Youngho Kim, Chairman of KoSIF 

 Byoung Dug Min, Member of the National Assembly, Democratic Party of Korea

Executive Summary 

Overall Status of ESG Finance in Korea

Breakdown of ESG Finance by Type

 ESG Investment

 ESG Loan 

 ESG Financial Product 

 ESG Bond Issuance

 ESG Public Offering Funds

ESG Financial Issues Report 

 Sustainability-Linked Products and Transition Finance

 One Year After the Release of the Green Credit Guidelines: How Well Have They Settled in the Financial Sector?

 The Era of RE100: Market Structure and Expansion Challenges of Renewable Energy-Exclusive Products

 Current Status of LNG Finance as a Transition Activity and Challenges in the Disclosure System

Appendix

 Top 5 Financial Institutions by Sector Based on Total ESG Finance

 Current Status of 2024 ESG Finance Targets 

 ESG Finance Targets by Private Financial Group 

[Main Contents]

 - As of the end of 2024, the scale of domestic ESG finance reached KRW 2,012.6 trillion, more than doubling since 2019; however, the annual growth rate slowed to 8.9%, indicating a decelerating trend.

- The expansion of ESG finance was primarily driven by a public-led structure focused on policy-based lending. 

- The market maintains a structure centered on Investments and Loans :

   ESG Investment: KRW 945.5 trillion (47.0%) 

   ESG Loan: KRW 753.0 trillion (37.4%) 

   ESG Bond Issuance: KRW 247.5 trillion (12.5%)

   ESG Financial Product: KRW 66.6 trillion (3.3%)

- There is a critical need for clear definitions, performance evaluations, and incentive structures for transition finance. 

Inquiries: Jae Hyuk Lee Senior Researcher (leejh1523@kosif.org), Namyoung Park Department Head  (nypark@kosif.org)