Shinhan Bank Issues 100 Billion KRW Green Bonds Applying Korean Green Taxonomy

Scheduled Support for Two Renewable Energy Projects Including Solar Power and Biomass Generation Businesses

[Asia Economy Reporter Yu Je-hoon] Shinhan Bank announced on the 24th that it successfully issued a public green bond worth 100 billion KRW in accordance with the green taxonomy (K-taxonomy) guidelines announced by the Ministry of Environment last year.

The green taxonomy classifies activities that contribute to achieving six major environmental goals such as greenhouse gas reduction and climate change adaptation, providing clear principles and standards for green economic activities. It was introduced to support the inflow of more private and public funds into green economic activities.

The green taxonomy was first announced by the European Union (EU) in 2020, which sparked active discussions. The Ministry of Environment reflected international standards such as those from the EU and the International Organization for Standardization (ISO) to domestic circumstances and established the Korean-style green taxonomy guidelines in December last year.

To expand the application of the Korean-style green taxonomy and revitalize the green finance market, the Ministry of Environment launched a 'Green Taxonomy Application Pilot Project' in April and is supporting participating institutions to issue green bonds by applying the green taxonomy guidelines.

Shinhan Bank participated in the pilot project and received green taxonomy conformity verification for two renewable energy projects, including solar power and biomass power generation projects. The funds raised through this green bond issuance will be allocated to these projects. A Shinhan Bank official stated, "Recognizing the importance of the financial sector's role in promoting green economic activities, we actively participated in the pilot project to integrate the green taxonomy into finance," adding, "We will continue to do our best to establish the green taxonomy and expand green finance."

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