Shinhan Bank to Issue 150 Billion KRW Korean-Style Green Bonds This Year

Shinhan Bank announced on the 29th that it has participated in the "Korean Green Bond Issuance Secondary Compensation Support Project" led by the Ministry of Environment and successfully issued Korean green bonds totaling 150 billion KRW this year.

Shinhan Bank, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Korean green bonds are bonds whose raised funds must be used exclusively for projects that comply with the Korean Green Taxonomy (K-Taxonomy). The loan assets require strict procedures, including prior review of conformity with the Korean Green Taxonomy by institutions designated by the Ministry of Environment and mandatory post-reporting.

The Ministry of Environment is promoting a secondary compensation project that supports 0.2~0.4% of the bond issuance amount to activate Korean green bond issuance and encourage private capital participation. Shinhan Bank successfully issued 100 billion KRW for the first time domestically in August 2022. This year, it issued an additional 100 billion KRW in August and 50 billion KRW in December, totaling 150 billion KRW in green bonds.

The 100 billion KRW green bonds issued this year were allocated to renewable energy projects such as solar and biomass power generation, which received conformity reviews of the green taxonomy from Korea Ratings. The 50 billion KRW will be used to support electric vehicle purchase loans that have undergone conformity reviews by the Korean Standards Association.

A Shinhan Bank official stated, “We recognize the importance of the financial sector’s role in promoting green economic activities and are striving to activate green bonds. We will continue to expand green finance and do our best to help foster the domestic green industry.”

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