Industrial Bank of Korea Issues 1 Trillion KRW Social Bonds in Korean Won

Fulfilling the Social Responsibility of Finance: Supporting SMEs Affected by COVID-19 and Alleviating Employment Instability

[Asia Economy Reporter Kangwook Cho] KDB Industrial Bank announced on the 12th that it has completed the issuance of social bonds worth 1 trillion KRW to major domestic institutional investors.

Social bonds are one of the three types of ESG bonds (green, social, sustainable bonds) and are special purpose bonds that restrict the use of raised funds to socially contributive areas such as supporting small and medium-sized enterprises and employment stability.

Since issuing the first domestic KRW green bond (300 billion KRW) and social bond (300 billion KRW) in 2018, KDB Industrial Bank has contributed to market revitalization through steady annual ESG bond issuance, including 800 billion KRW last year and 1 trillion KRW this year.

KDB Industrial Bank plans to use the raised funds to fulfill its social responsibility in finance by supporting small and medium-sized enterprises and companies contributing to employment stability that have been struggling due to the COVID-19 pandemic. The comprehensive use of funds can be confirmed through the "Green, Social, and Sustainable Bond Standard Management System" on the Industrial Bank's website.

An official from KDB Industrial Bank stated, "As a representative policy finance institution, we plan to continue exploring and implementing various methods to realize the social responsibility of finance through financial support that aligns with government policies to enhance social value, including support for national crisis response."

This content was produced with the assistance of AI translation services.