KB?Sonbo, Participating in SIB Project to Resolve Youth Unemployment in Seoul City

Invested a total of 300 million KRW to participate... Plans to reinvest funds into other social contribution projects upon profit generation

[Asia Economy Reporter Oh Hyung-gil] KB Insurance announced on the 4th that it will participate by investing a total of 300 million KRW in the Social Impact Bond (SIB) project promoted by the Seoul Metropolitan Government to resolve youth unemployment.

SIB refers to a type of bond where private investment is used to carry out public projects in welfare, health, education, employment, housing, culture, environment, etc., and when social contribution performance goals are achieved, the government (local government) executes the budget to repay the principal and interest to investors. Through this, the government (local government) can proactively address social issues, execute the budget based on performance after project completion, reduce budget expenditure, and improve the efficiency of public projects.

From the perspective of private investors, participation in public projects aimed at solving social problems allows them to receive principal and interest as performance rewards upon achieving project goals, thereby increasing the availability of public interest funds and ultimately enabling more social contribution activities.

KB Insurance decided to participate in this Seoul youth unemployment resolution SIB project by investing 100 million KRW annually, totaling 300 million KRW, utilizing the designated donation system of the Community Chest of Korea, and plans to allocate any profits generated to other social contribution projects.

Additionally, KB Insurance is participating in this SIB project as part of KB Financial Group’s ESG (Environmental, Social, Governance) management policy and plans to strengthen ‘social impact investment’ for mutual growth and coexistence in the future. Social impact investment refers to investments in institutions, projects, or funds aimed at creating impact with a social contribution nature.

KB Insurance stated, “We decided to participate in the project as the need for public-private collaboration with diverse resources has emerged to pursue sustainable and impactful social values,” and added, “We will realize the value of coexistence through social contribution activities that align with KB Financial Group’s ESG management policy.”