Sejong, May 30 - On May 24, the Ministry of Environment (Minister Han Wha-jin) and the Korea Environmental Industry & Technology Institute (KEITI, President Heung Jin Choi) signed a Memorandum of Understanding (MOU) on Korean Green Bond1 with 23 companies who are participating in the program for the subsidization of the difference in the interest for green bond issuance. 

The Ministry of Environment revised the Green Bond Guidelines in December 2022 to enhance the credibility of green bonds for investors. The Ministry also encourages the private capital to participate in the green transition. As part of these efforts, the Ministry is conducting a pilot program to subsidize interest costs associated with issuing green bonds.

A group of 23 public and private companies participating in the program for the subsidization of the difference in the interest for green bond issuance came together to swear to cooperate to boost green bonds. These companies have pledged to work together to advance the use of green bonds by identifying projects that align with K-taxonomy, including renewable electricity generation and expanding green transportation. As part of their commitment to this cause, the companies will issue green bonds to support these projects.

The companies involved in the project plan to issue green bonds worth around KRW 3.9 trillion by the end of the year, with a budget of approximately KRW 5.1 billion. Successful implementation of the projects supported by these bonds could lead to significant environmental improvements, including a reduction of approximately 3.73 million tons of greenhouse gas emissions annually.

The Ministry and KEITI will continuously implement policies for expanding the application of K-taxonomy, which will be fully implemented in 2023, and support initiatives for issuing Korean green bonds.

1 Green bond that are issued in accordance with K-taxonomy

Contact: Kim Na-seung, Deputy Director

Green Transition Policy Division / +82-(0)44-201-6690

Foreign Media Contact: Chun Minjo(Rachel)

+82-(0)44-201-6055 / rachelmchun@korea.kr