Small and Medium Business Corporation, ESG Bonds Listed on Korea Exchange

5.4 Trillion KRW in SME Venture Policy Financing This Year Fully Supplied Through ESG Bonds
Expectations for Enhanced Reliability and Transparency... "Will Lead Expansion and Activation of the ESG Market"

[Asia Economy Reporter Kim Cheol-hyun] The Small and Medium Business Corporation (Chairman Kim Hak-do, hereinafter referred to as SBC) announced on the 7th that it will list the 5.4 trillion KRW scale Small and Medium Business Promotion Bonds to be issued this year as ESG (Environmental, Social, and Governance) bonds on the Korea Exchange (KRX).

As of the end of 2020, SBC has cumulatively issued a total of 7.7 trillion KRW in ESG bonds, leading the domestic Korean won ESG bond issuance market with the highest market share of ESG bond issuance in the public corporation and special bond AAA market.

This year, SBC plans to issue the entire 5.4 trillion KRW fundraising amount as Social Bonds. It is expected to contribute to the stable financing of policy funds for fostering small and medium enterprises and startups, as well as to raise social responsibility investment interest among bond investors.

Since obtaining ESG certification for the Small and Medium Business Promotion Bonds in October 2019, SBC has been raising all necessary funds entirely through Social Bonds. The raised funds are supplied as policy funds to small and medium enterprises and startups, serving as social resources for job creation and overcoming the COVID-19 economic crisis.

In particular, last year, to provide rapid liquidity to small and medium enterprises and startups severely affected by the spread of COVID-19, SBC issued the entire issuance volume as ESG bonds, taking the lead in maintaining the small and medium enterprise ecosystem. Accordingly, the international credit rating agency Moody's emphasized SBC's public duty and socio-economic role in its regular credit rating in December last year.

Kim Hak-do, Chairman of SBC, stated, "Through the ESG bond listing of the Small and Medium Business Promotion Bonds and inclusion in the 'Socially Responsible Investment Bond Dedicated Segment,' we expect to eliminate blind spots in the Korean won bond market and enhance reliability and transparency." He added, "SBC will play a leading role in expanding and revitalizing the domestic ESG market, which is entering its introductory stage."