Jijunseop, Deputy Head of Agricultural, Green, and Public Finance Division at NongHyup Bank
"Prioritizing Community Sharing Over Profit... Promoting Expansion of ESG Products"
[Asia Economy Reporter Kiho Sung] "NongHyup Bank is an ESG (Environmental, Social, and Governance) organization from its inception. Starting next year, we plan to engage in nationwide, field-tailored ESG activities beyond just rural areas. While this year we focused on establishing the ESG framework, from next year onward, we will place greater emphasis on implementation."
Ji Junseop, Vice President of the Agriculture, Green, and Public Finance Division at NH NongHyup Bank, emphasized throughout his interview with Asia Economy on the 22nd that NongHyup Bank’s ESG activities differ from those of other financial institutions. He stated, "NongHyup Bank has ESG management DNA embedded since its establishment." As the only purely domestically capitalized bank in Korea, founded on agriculture and growing based on farmers, ESG is essentially the founding goal of NongHyup Bank itself.
Vice President Ji explained, "Since NongHyup Bank’s profits are distributed to farmers through NongHyup Financial Group and NongHyup Central Association, the bank’s profits directly connect to ESG," adding, "Due to NongHyup Bank’s unique characteristics, sharing with the local community takes precedence over maximizing profits."
In fact, NongHyup Bank’s ESG promotion speed is significantly faster than other financial institutions. A representative example is the ‘NH Agricultural Food Green Growth Loan,’ the first ESG-dedicated credit product launched in the domestic financial sector last year. This product offers interest rate benefits based on the ‘NH Green Growth Index,’ an ESG evaluation index developed independently by NongHyup Bank, and as of September this year, it has supported approximately 1.84 trillion KRW.
Among conservative banks, and especially NongHyup Bank, which is considered even more conservative, it was the first to introduce an ESG-dedicated credit product. Were there any internal concerns or opposing opinions? Vice President Ji said, "Rather than opposition, employees actively supported the product launch," and added, "Employees always have a strong interest in rural areas and agriculture, so they feel the climate change crisis more acutely." He also noted, "NongHyup Bank’s unique DNA plays a role in accelerating ESG management."
NongHyup Bank continues to expand its ESG-dedicated products. A key feature is that these products allow financial consumers to feel the necessity of ESG and take action. Vice President Ji stated, "Currently, we are expanding benefits such as preferential loan interest rates and preferential exchange and savings interest rates for customers who reduce water or electricity usage by linking with the ‘Carbon Point System.’ Next month, we plan to launch a new deposit product that offers interest rate benefits to customers practicing ESG activities, and NongHyup Bank will match this by supporting a green environment fund."
Vice President Ji revealed that starting next year, NongHyup Bank will strengthen nationwide ESG activities beyond rural areas. He said, "NongHyup Bank has the strongest network in regions, including local agricultural and livestock cooperatives, and thus possesses detailed information on what each region needs," adding, "For example, we plan to expand customized ESG activities suitable for each region, such as establishing eco-friendly logistics systems using electric vehicles and relay tree planting."
▲ Born in Seoul, 1963
▲ Graduated from Baemoon High School, Seoul; Bachelor’s in Agricultural Education, Seoul National University; Master’s in Agricultural Education, Graduate School of Seoul National University
▲ Joined NongHyup Central Association in 1990
▲ Director of External Strategy, Planning Office, NongHyup Central Association, 2015
▲ Head of Future Strategy Department, NongHyup Central Association, 2016
▲ Chief Secretary, NongHyup Central Association, 2019
▲ Executive Director, Planning and Coordination Headquarters, NongHyup Central Association, 2020
▲ Head of Agriculture and Public Finance Division, NH NongHyup Bank, 2020
▲ Head of Agriculture and Green Finance Division and Public Finance Division, NH NongHyup Bank, 2021
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