Industrial Bank of Korea Develops ESG Investment Implementation Monitoring Model for Asset Management Firms

Grant Additional Points When Selecting Future Outsourced Asset Management Firms Based on Results

[Asia Economy Reporter Park Sun-mi] The Korea Development Bank (KDB) announced on the 1st that it plans to establish and operate an ESG investment implementation monitoring model for entrusted asset management companies of KDB-funded private equity funds to advance the private investment market and expand the base of ESG (Environmental, Social, and Governance) investments.

Along with the increase in global ESG investment scale, major domestic and international limited partners are strengthening monitoring of ESG investment performance by asset management companies for the purpose of securing long-term returns and managing risks. Accordingly, based on the research conducted by the Korea Corporate Governance Service from February to August, KDB established the 'Entrusted Asset Manager ESG Investment Implementation Monitoring Model' considering global ESG investment initiatives, cases of major overseas limited partners, and the current status of the domestic private equity market.

KDB plans to assess the ESG investment capabilities of asset managers annually in the second half of the year through implementation checks conducted by external professional evaluation agencies, and based on the results, provide preferential treatment such as additional points when selecting entrusted asset managers in the future.

A KDB official stated, "Following the Green Impact Fund worth 52.5 billion KRW (with KDB investing 30 billion KRW) established in May, the establishment of this ESG investment implementation monitoring plan is part of KDB's sustainable management," adding, "We will continue to contribute to the activation of ESG investment in the domestic market."

This content was produced with the assistance of AI translation services.