KB Asset Management's ESG Infrastructure Fund Surpasses 2 Trillion Won

-Expanded from 1.4 trillion KRW at the end of 2018 to 1.7 trillion KRW last year
-Increased by 400 billion KRW in just 6 months thereafter

The above photo is not related to the article. (Photo by Asia Economy DB)

[Asia Economy Reporter Kum Bo-ryeong] The scale of KB Asset Management's ESG (Environmental, Social Responsibility, Governance) infrastructure fund has surpassed 2 trillion won.

According to KB Asset Management on the 22nd, the size of ESG-related funds expanded from 1.4 trillion won at the end of 2018 to 1.7 trillion won last year, and increased by 400 billion won in six months, surpassing 2 trillion won.

KB Asset Management's ESG-related funds are divided into funds investing in domestic environmental facilities and funds investing in renewable energy projects. For funds investing in domestic environmental facilities, they maintain aging sewage pipelines and treat domestic wastewater. They are expanding their scope beyond simple sewage treatment to projects that reuse water discharged from sewage treatment plants as industrial water. A representative example is the KB Pohang Reuse Water Fund, which is worth 60 billion won.

Renewable energy investments have increased annually since starting solar power fund management in 2007. They invest in power plants through 12 solar-related funds, expanding their scope to include floating solar power generation as well as onshore solar power. Starting with Japan in 2014, solar power projects have expanded to Chile, Australia, Spain, and the United Kingdom. The size of overseas renewable energy funds, which was only 100 billion won in 2018, has recently grown to 500 billion won.

In addition to solar power, investments are made in wind power, fuel cell power generation facilities, and bioenergy utilizing digester gas extracted from sewage sludge. The KB Jaeun Wind Power Fund, which invested in a 29.4MW wind power complex project in Jaeun-myeon, Sinan, Jeollanam-do, was promoted as a resident participation type where local residents hold some shares.

Lee Hyun-seung, CEO of KB Asset Management, who oversees alternative investments, said, "Through managing various ESG funds, we provide investors with diverse investment opportunities," adding, "We will diversify investments into biogas, wind power, and actively pursue overseas expansion." As of this month, KB Asset Management manages alternative investment funds worth 15 trillion won.

Hyunseung Lee, CEO of KB Asset Management

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