New Agreement to Promote Investment in ESG Private Investment Projects with KB Kookmin Bank and KB Securities

Issuance of 280 Billion Won Guaranteed ESG-Certified Securitized Bonds, Investment in the 2nd Gyeongin Connected Expressway Project

Yoon Dae-hee, Chairman of the Korea Credit Guarantee Fund (center), Heo In, President of KB Kookmin Bank, and Kim Sung-hyun, CEO of KB Securities, are posing for a commemorative photo at the signing ceremony for the agreement to promote investment in ESG (Environmental, Social, and Governance) private investment projects.

[Asia Economy Reporter Kwangho Lee] The Korea Credit Guarantee Fund (KODIT) announced on the 25th that it signed a "Memorandum of Understanding (MOU) to Promote Investment in ESG (Environmental, Social, and Governance) Private Investment Projects" with KB Kookmin Bank and KB Securities at the new building of KB Kookmin Bank. The agreement aims to expand the sustainable growth foundation of the Korean economy in the post-COVID-19 era.

Through this agreement, the participating institutions will cooperate to promote investment and provide financial support for ESG private investment projects, which will serve as a catalyst for expanding Korea's ESG infrastructure. They also agreed to share know-how and networks related to discovering relevant projects.

As the first support under the agreement, they will invest KRW 280 billion from an ESG securitized bond scheduled to be issued in December into the "2nd Gyeongin Connection (between Anyang and Seongnam) Expressway" project. The securitized bond to be issued this time is the first guaranteed ESG-certified bond in a private investment project and has received the highest ESG rating (Grade 1) from Korea Ratings.

Private investment projects are representative public-private joint ESG projects that thoroughly manage environmental impact (E), social benefits (S), and responsible governance (G) throughout the project, based on the "Act on Private Investment in Social Overhead Capital." Through this agreement, KODIT plans to promote the role of private investment projects in creating an ESG ecosystem and contribute to the spread of ESG through private investment projects.

KODIT has been focusing its entire organizational capabilities on ESG management. In July, it established the "KODIT-type Comprehensive ESG Promotion Plan" and declared the vision of "Finance that cares for people, ESG KODIT that adds value." It also set up an ESG Promotion Committee with external experts to strengthen support for green and social finance.

Yoon Dae-hee, Chairman of KODIT, said, "ESG is a compass pointing the direction our economy should take in the post-COVID-19 era." He added, "Through this agreement, KODIT will take the lead in firmly rooting ESG not only in small and medium-sized enterprises, which are the backbone of our economy, but also in the private investment project ecosystem."

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