Financial Supervisory Service Develops 'Korean Green Taxonomy Application System' with Financial Sector

(Back row from left) Hwang Hyun-soon, CEO of Kiwoom Securities; Jeong Seong-jae, Acting Chairman of BNK Financial Group; Kim Tae-oh, Chairman of DGB Financial Group; Kim Ki-hong, Chairman of JB Financial Group; Lee Gyu-seong, CEO of Aegis Asset Management; (Front row from left) Son Byung-hwan, Chairman of NH Nonghyup Financial Group; Ham Young-joo, Chairman of Hana Financial Group; Lee Bok-hyun, Governor of the Financial Supervisory Service; Yoon Jong-kyu, Chairman of KB Financial Group; Son Tae-seung, Chairman of Woori Financial Group, are taking a commemorative photo after the agreement ceremony.

[Asia Economy Reporter Bu Aeri] The Financial Supervisory Service (FSS) has signed a business agreement with 10 financial companies to develop a system applying the Korean-style Green Taxonomy (K-Taxonomy).

According to the FSS on the 21st, the Korean-style Green Taxonomy application system supports financial company practitioners in appropriately judging whether investment target projects comply with the green taxonomy. The FSS stated, "It will play an important role in redirecting the flow of funds into the green sector."

The agreement includes KB Financial Group, Shinhan Financial Group, Woori Financial Group, Hana Financial Group, NH Nonghyup Financial Group, BNK Financial Group, DGB Financial Group, JB Financial Group, Kiwoom Securities, and Aegis Asset Management. Ewha Womans University Climate and Environmental Change Prediction Research Center, the Embassies of the United Kingdom, the Netherlands, and Denmark in Korea, and the Korea Environmental Industry & Technology Institute participate as advisory groups.

The FSS also revised the 'Climate Risk Management Guidelines' to help domestic financial companies respond to global regulatory changes related to climate change in line with international standards.

The revised guidelines include the Basel Committee on Banking Supervision (BCBS)'s 'Principles for the Management and Supervision of Climate-related Risks' and related climate scenario analysis content.

The FSS plans to monitor the level of financial companies' compliance with the guidelines going forward.