Korea Eximbank Establishes Global ESG Fund Worth 200 Billion Won
500 Billion KRW Investment for K-New Deal Industry's Overseas Expansion... Fund Size Targeted Over 200 Billion KRW
[Asia Economy Reporter Park Sun-mi] The Export-Import Bank of Korea (hereinafter ‘KEXIM’) announced on the 22nd that it will establish a fund worth more than 200 billion KRW to support the overseas expansion of Korean companies in the digital and green New Deal sectors.
KEXIM plans to invest 25 billion KRW each in two funds. The final fund size aims to exceed 200 billion KRW. Once the fund managers are selected, KEXIM will focus investments on the overseas expansion of Korean companies, including exports, imports, overseas investments, and local subsidiaries, centered on the seven key K-New Deal support areas designated by KEXIM. The establishment of KEXIM’s global ESG fund is currently announced on KEXIM’s website. After selecting the fund managers, the investment decision will be finalized in the first half of the year following approval from the Minister of Strategy and Finance.
KEXIM plans to improve the corporate structure for internalizing ESG (Environmental, Social, and Governance) by diagnosing the ESG level of target companies at the time of investment and deriving improvement plans, and by evaluating the actual ESG improvement effects at the investment recovery stage. To ensure objectivity, ESG diagnosis and ESG internalization performance evaluation will be entrusted to external ESG specialized institutions.
In particular, if companies invested in by the fund show ESG improvement effects, KEXIM plans to promote domestic socially responsible investment by sharing a portion of the profits attributable to KEXIM with the fund managers.
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President Bang Moon-kyu explained the purpose of this ESG investment, saying, “ESG investment, which has been led by advanced countries, has emerged as a global keyword as investors’ interest in the sustainability of corporate management activities has increased due to the COVID-19 pandemic, climate change, and environmental pollution. For Korean companies to secure a leading position in the global market in the K-New Deal sectors and to build a sustainable lifecycle that leads to business expansion and new investments, internalizing ESG in corporate management is necessary.”
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