Korea Development Bank Issues 300 Billion KRW Green Bonds

Establishment and Issuance of Green Bond Management System Applying Korean Green Classification System
Support for Green Eco-friendly Projects such as Wind Power and Electric Vehicles

[Asia Economy Reporter Song Hwajeong] The Korea Development Bank (KDB) announced on the 7th that it has completed the issuance of green bonds worth 300 billion KRW in accordance with the Ministry of Environment's Korean Green Taxonomy (K-Taxonomy) guidelines.

The total issuance amount is 300 billion KRW, with a maturity of 3 years and an interest rate of 4.93%.

In April of this year, KDB participated in the Korean Green Taxonomy pilot project led by the Ministry of Environment, established a green bond management system applying the Korean Green Taxonomy guidelines in May, and successfully completed this green bond issuance.

The Korean Green Taxonomy is a guideline defining green economic activities announced by the Ministry of Environment on December 30 last year. It presents clear principles and standards for green economic activities that contribute to achieving six major environmental goals, including greenhouse gas reduction and climate change adaptation.

KDB plans to support green eco-friendly projects such as renewable energy (wind power) and zero-emission transportation (electric vehicles), which have been verified for compliance with the Korean Green Taxonomy, using the funds raised. The usage details and environmental improvement contributions will be reviewed annually by external organizations and disclosed on the website until the funds are fully utilized.

Since issuing the first domestic KRW green bond (300 billion KRW) in 2018, KDB has continuously issued green bonds every year, playing a key role as a major market maker. Through this green bond issuance applying the Korean Green Taxonomy, KDB expects to contribute to revitalizing the domestic green bond market and dispel concerns about widespread greenwashing in the market.

A KDB official stated, "As a representative policy financial institution, we will actively participate in the early activation of the Korean Green Taxonomy, continuously issue green bonds, and lead the development of the domestic green finance market through funding support in eco-friendly sectors for carbon neutrality."