SC Group "Korean Asset Owners Can Invest 481 Billion USD in Sustainability by 2030"

"Financial Institutions Can Enhance Accessibility and Transparency of Sustainable Investments"

[Asia Economy Reporter Yu Je-hoon] It is predicted that South Korea's individual asset holders could invest approximately $481 billion (about 68.9 trillion KRW) in sustainable sectors related to climate transition and environmental, social, and governance (ESG) issues by 2030.

On the 30th, according to the financial sector, Standard Chartered (SC) Group, the parent company of SC First Bank, revealed this in its recently published 'Sustainable Banking Report 2022.'

According to the report, considering South Korea's significant population size and domestic asset growth trends, the country is analyzed to have great growth potential in the sustainable investment sector. Furthermore, this investment potential is expected to play an important role in addressing funding shortages occurring in other ESG challenges such as climate transition, environmental pollution, waste management, poverty, and income inequality.

Through this study commissioned to PwC Singapore, SC Group estimated the potential retail financial asset size that could flow into sustainable investments by 2030 in 10 major growth markets across Asia, the Middle East, and Africa, including South Korea, China, Hong Kong, Taiwan, Singapore, Malaysia, India, Nigeria, Kenya, and the United Arab Emirates (UAE). It projected that the total sustainable investment scale supplied by individual asset holders in these 10 markets, including South Korea, could reach $8.2 trillion by 2030.

The study also conducted a survey on 3,113 asset holders composed of emerging affluent, affluent, and high net worth individuals in the 10 major growth markets, examining their interest, intention, motivation, duration, and barriers related to sustainable investment.

In South Korea, among about 300 survey participants, half (50%) expressed willingness to invest in financial products aimed at solving climate issues. The top ESG priorities (multiple responses allowed) were identified as climate change and carbon emissions (49%), environmental pollution and waste management (33%), and poverty and income inequality (32%). The barriers to sustainable investment that need to be overcome (multiple responses allowed) were perceived as low returns and high risks (52%), low understanding (51%), and low accessibility (49%).

SC Group emphasized through this report that financial institutions can play a crucial role in removing the barriers felt by individual asset holders. By providing diverse solutions across more markets through digital platforms, they can improve accessibility to sustainable investments while offering clear and transparent information to alleviate investors' concerns.

Jang Ho-jun, Head of Retail Banking Group (Vice President) at SC First Bank, stated, "Individual investors in major growth markets show great interest in ESG issues such as climate change, environmental pollution, poverty, corruption, food shortages, and energy security, and there is a growing tendency to adopt ESG investments that positively impact the environment and society as mainstream investment strategies. SC Group possesses professional financial knowledge and product solutions that enable investors to achieve both returns and purpose, and we will actively develop and provide ESG financial solutions that lead change and innovation for a sustainable future to our customers."