Korea Rail Network Authority Raises 70 Billion KRW Through Green Bonds for Honam High-Speed Rail Funding

The Korea Rail Network Authority announced on August 18 that it had issued green bonds worth 70 billion KRW. Green bonds are issued to raise funds for projects aimed at environmental improvement, such as responding to climate change and developing renewable energy.

The authority has established a management system that complies with the Korean Green Bond Guidelines set by the Ministry of Environment and the Financial Services Commission. Korea Investors Service conducted an ESG bond certification assessment, using official criteria to determine whether specific activities qualify as environmentally friendly projects, and the authority received a suitability rating.

Korea Rail Network Authority Headquarters. Provided by Korea Rail Network Authority

Railways are considered an eco-friendly mode of transportation, as they emit less carbon compared to other means of transport. The construction of high-speed rail is classified as the establishment and operation of zero-emission transport infrastructure under the Korean green taxonomy. Previously, in 2023, the authority issued its first green bonds, raising 30 billion KRW for the first phase of the Honam High-Speed Railway and, the following year, 50 billion KRW for the construction of the Metropolitan Area High-Speed Railway.

The funds raised through this issuance will be used for the second phase construction of the Honam High-Speed Railway. The authority also plans to consider increasing the issuance scale if its own investments in high-speed rail construction grow. Lee Seonghae, President of the Korea Rail Network Authority, stated, "This green bond issuance is 20 billion KRW larger than last year's, and as a leading public institution in the rail sector, we will actively pursue eco-friendly values."

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