KB Asset Management's ESG Fund Assets Under Management Surpass 3 Trillion Won

[Asia Economy Reporter Junho Hwang] KB Asset Management's ESG-related assets under management surpassed 3 trillion won on the 31st. They increased by more than 600 billion won in just the first quarter. This includes 2.1 trillion won in alternative investments focused on renewable energy and domestic environmental facilities, 640 billion won in equity funds, and 260 billion won in bond funds. A solid position in the ESG-related alternative investment market has shown remarkable growth in the securities segment.

In January, KB Asset Management launched the largest ESG bond fund in Korea (220 billion won) and introduced various funds investing in themes such as global ESG and the global hydrogen economy. ESG products are also gaining popularity in the ETF sector. The KBSTAR ESG Social Responsibility Investment ETF and KBSTAR Fn Hydrogen Economy Theme ETF have recorded outstanding performance, with net assets increasing by more than 180 billion won each since the beginning of the year.

KB Asset Management applies an ESG integration system in its operations. For domestic companies, it collaborates with Daeshin Economic Research Institute and the Korea Corporate Governance Service to classify domestic investment companies into seven levels, utilizing individual stock ESG evaluation information in management. For overseas companies, ESG factors are reflected in quantitative and qualitative evaluation scores when selecting overseas entrusted asset managers and funds. Additionally, led by the ESG&PI team, company-wide computerization work is underway to operate ESG investment guidelines.

KB Asset Management plans to launch eco-friendly theme funds investing in overseas assets and a 150 billion won Green New Deal infrastructure fund in the future.

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