Do Gyu-sang, Vice Chairman of the Financial Services Commission, "We will support the creation of a green ecosystem in the financial sector"

Provincial Vice Chairman Chairs the 1st Green Finance Council Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Do Gyu-sang, Vice Chairman of the Financial Services Commission, stated on the 24th, "We will thoroughly prepare institutional support to foster a self-sustaining green ecosystem in the financial sector."

Vice Chairman Do made these remarks while presiding over the '1st Green Finance Council' at the Government Seoul Office in the afternoon. The council was held to discuss the declaration of support for the Task Force on Climate-related Financial Disclosures (TCFD), the current status of green finance, and future plans.

First, the TCFD support declaration was made under the leadership of the Financial Services Commission, with participation from 13 financial-related institutions including the Financial Supervisory Service, Korea Deposit Insurance Corporation, Korea Development Bank, Export-Import Bank of Korea, Korea Securities Depository, Korea Financial Telecommunications & Clearings Institute, and Korea Housing Finance Corporation. The TCFD is a global consortium established following the Paris Climate Agreement to expand disclosure of financial information related to the impact of climate change on companies. Vice Chairman Do said, "Participating institutions will strengthen their climate change-related response activities based on the recommendations going forward."

The Financial Services Commission decided to accelerate the implementation of green finance initiatives following the support declaration. It announced plans to firmly establish the promotion system of policy financial institutions to ensure green finance is not a one-time effort. To this end, the 'Green Finance Council' was launched together with seven financial-related institutions (KDB, Eximbank, Korea Finance Corporation, Korea Exchange, Korea Credit Guarantee Fund, Korea Technology Finance Corporation, and Korea Trade Insurance Corporation) on the same day.

Vice Chairman Do emphasized, "Through the council, we will discuss strategies for supporting policy funds in the green sector to ensure smooth capital supply and create synergy in policy financial support."

The Financial Services Commission, together with the Ministry of Environment and the Ministry of Trade, Industry and Energy, plans to establish a 'Korean Green Taxonomy' by next month and pilot it within the financial sector in the second half of the year. Additionally, the 'Green Finance Best Practices for the Financial Sector,' which includes principles for green sector funding support, and the 'Climate Risk Management Guidelines' to soundly manage climate risks will be prepared in the third quarter.

Furthermore, the commission will gradually expand ESG (Environmental, Social, and Governance) information disclosure and build an 'ESG Integrated Information Platform,' thereby establishing infrastructure related to green finance. On the 29th, a 'Green Finance Special Session' will also be held to discuss the role of finance in green recovery in the post-COVID-19 era.

Vice Chairman Do stated, "To turn the climate crisis into a new opportunity, it is necessary for our financial sector to take a more proactive lead, including actively participating in global discussions." He added, "We expect more active interest and participation in green finance from the domestic financial sector, triggered by the TCFD support declaration."

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