[2021 Asia Financial Forum] Eun Sung-soo, Chairman, "Actively Improving Difficulties in Issuing ESG Bonds"

2021 Seoul Asia Financial Forum Opening Address
Commitment to 73.5 Trillion KRW Green Investment Over the Next 5 Years

Financial Services Commission Chairman Eun Sung-soo delivers a congratulatory speech at the 10th 2021 Seoul Asia Financial Forum held on the theme of future financial innovation and sustainable growth at the Westin Chosun Hotel in Jung-gu, Seoul on the 25th. Photo by Moon Ho-nam munonam@

Financial Services Commission Chairman Eun Sung-soo emphasized on the 25th that "we will improve problems and difficulties in the issuance and investment process of domestic ESG (Environmental, Social, and Governance) bonds." He also announced plans to actively foster the green ecosystem through large-scale green investments amounting to 73.5 trillion won over the next five years.

At the ‘10th 2021 Seoul Asia Financial Forum’ held by Asia Economy on the same day at the Westin Chosun Hotel in Sogong-ro, Jung-gu, Seoul, Chairman Eun stated, "ESG management, which emphasizes non-financial factors in addition to past finance-centered management, is a demand of the times," adding, "We will pursue financial policies that drive South Korea’s sustainable growth looking beyond the COVID-19 crisis."

Chairman Eun’s commitment to lowering the ‘barrier’ for issuing ESG bonds stems from the fact that, unlike environmental (E) bonds, social (S) and governance (G) bonds have yet to have guidelines established, causing delays in their activation.

A bank president attending the forum said, "In the case of S and G bonds, there are many ambiguous boundaries, making it difficult to proceed," and added, "It is necessary for financial authorities to establish guidelines and definitions."

Accordingly, the Financial Services Commission plans to complete the establishment of guidelines and definitions for issuing S and G bonds within this year. They are currently proceeding with related procedures considering cases from major advanced countries.

To revitalize green finance in the environmental sector, which is gaining ground, there is a plan to foster the green ecosystem through green investments totaling 73.5 trillion won over the next five years. Chairman Eun expressed, "We will significantly increase financial support for green sectors such as green mobility and renewable energy through green-specialized loans from policy financial institutions." To this end, a ‘Green Finance Best Practice Code’ will be prepared and applied to the entire financial sector in the second half of the year. This aims to establish support principles and risk management measures so that financial companies can actively promote green finance.

In the governance sector, he pledged to actively support the establishment of corporate ESG management and ESG investment culture together.

Chairman Eun said, "New changes start not with grand gestures but with the ‘first step’ taken," and added, "I hope this forum will be a valuable opportunity for change toward ESG management."

Meanwhile, the forum hosted by Asia Economy was organized under the theme of ‘Future Financial Innovation and Sustainability’ to deeply examine the present and future of ESG, which has become the biggest issue in corporate management. Considering the COVID-19 situation, it was held in a hybrid format combining online and offline, and was conducted in three main sessions: ▲ Green New Deal and the Future of Green Finance ▲ Green Leadership for Sustainable Management ▲ Sustainable Investment and the Future.

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