KB Asset Management Launches Bond-Type ESG Fund with 220 Billion KRW in Assets Under Management

On the 11th, when the KOSPI index surpassed the 3,200 mark intraday for the first time in history, dealers were working in the Hana Bank dealing room in Euljiro, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Junho Hwang] KB Asset Management launched the bond-type ESG (Environmental, Social, and Governance) private fund 'KB Leaders ESG Specialized Investment Private Fund No. 1' on the 20th.

The fund size is 220 billion KRW, making it the largest domestic bond-type ESG fund including both public and private funds. This fund plans to invest more than 70% of its assets in bonds. The initial investment targets are bonds issued with Green Certification (Green Growth, Social Responsibility, Governance), bonds issued by these bond issuers, and bonds issued by companies rated in the top three ESG grades (A+, A, B+) designated by the Korea Corporate Governance Service.

Im Kwangtaek, Executive Director of the Bond Management Division at KB Asset Management, explained, "The domestic ESG bond market is in its early stages, and bonds that received Green Certification grades accounted for only about 1-2% of the total bond issuance market last year," adding, "We plan to gradually raise investment standards in line with future market expansion."

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