2023 Korea ESG Finance White Paper
The Korea Sustainability Investing Forum (KoSIF), in collaboration with the National Assembly member Byoung Dug Min (a member of the Political Affairs Committee), has released the 2023 Korea ESG Finance White Paper, offering an in-depth analysis of ESG finance across 156 domestic financial institutions (including 66 public and 90 private financial institutions).
According to the report, Korea's ESG finance volume has expanded significantly over the past 5 years, growing by 213% in 2023 over 2019 to reach KRW 1,883 trillion. The report identifies 3 key factors behind this growth: ESG investment, public financial sector, and the NPS (National Pension Service).
Despite the impressive growth, ESG finance still accounts for only about one quarter of total assets (KRW 7,129 trillion), which represents a strong potential for further expansion.
[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 Bond Issuance
ESG Financial Product
ESG Financial Issues Report
ESG Financial Targets
Status of Green Loans by Private Banks
ESG Investment by the NPS
Appendix
Top 5 Financial Institutions by Sector
2023 ESG Financial Target Status
[Main Contents]
- As of the end of 2023, Korea's ESG Finance volume reached KRW 1,883 trillion with the public sector emerging as the primary growth driver.
- Within the public financial sector, the NPS demonstrated particularly notable growth. This was largely due to the reclassification of overseas direct equity investments (KRW 138.5 trillion) as responsible investments, following the NPS’s 2022 policy to expand the scope of responsible investment asset classes.
- While the private sector also reported an increase in ESG finance volume, its volume remains relatively small compared to that of the public sector.
- By type, ESG investment accounted for KRW 795.5 trillion followed by ESG loans (KRW 761.8 trillion), ESG bond issuances (KRW 244.7 trillion), ESG financial products (KRW 80.7 trillion), all of which experienced growth across all categories.
Inquiries: Jae Hyuk Lee Senior Researcher (leejh1523@kosif.org), Namyoung Park Department Head (nypark@kosif.org)