Korea Railroad Issues 300 Billion KRW Green Bonds... Launching Full-Scale 'ESG Management'

Green Bond Issuance at the End of This Month... Investment in Eco-Friendly Projects Including Electric Railway Vehicle Purchases

The exterior of the Korail headquarters building.

[Asia Economy Reporter Kangwook Cho] Korea Railroad Corporation (KORAIL) announced on the 10th that it will actively engage in ESG (Environmental, Social, and Governance) management through the issuance of green bonds.

KORAIL plans to issue approximately 300 billion KRW worth of green bonds by the end of this month to invest in eco-friendly projects such as the purchase of electric railway vehicles, renewable energy, and environmental cleanup initiatives. Green bonds are bonds limited to use for green projects related to climate change, renewable energy, and funding for renewable energy projects.

KORAIL is currently seeking certification from an external professional institution to enhance investor trust and to meet the ESG bond issuance standards established by the government at the end of last year. ESG certification is monitored and evaluated in five grades by an external professional institution that oversees management standards and post-management.

Previously, in 2018, KORAIL received certification from Sustainalytics (Netherlands), a global bond rating agency, confirming compliance with international guidelines.

Son Byung-seok, President of KORAIL, stated, "After obtaining certification, we will continuously promote the issuance of ESG bonds to enhance corporate competitiveness and actively pursue low-carbon eco-friendly projects, leading ESG management."

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