A Cumulative 245.8 Billion Won Raised
Leading Green Management in the Railway Sector
with Replacement of Aging Electric Trains and More
Busan Transportation Corporation has been leading sustainable green management in the railway sector by issuing Korea Green Bonds for three consecutive years.
Busan Transportation Corporation (President Lee Byungjin) successfully issued Korea Green Bonds worth 50.7 billion won this year. Since becoming the first urban railway operator to issue green bonds in 2023, the corporation has reached a cumulative issuance volume of 245.8 billion won as of this year.
The funds raised this time were allocated separately, with 38.9 billion won invested in the replacement of aging electric trains and 11.8 billion won used for the improvement of outdated facilities. Through the issuance of green bonds, the corporation aims to secure a stable funding base while simultaneously achieving two goals: ensuring the safety of urban railway operations and reducing greenhouse gas emissions.
Korea Green Bonds are issued for projects that comply with the Ministry of Environment’s Korea Green Taxonomy (K-Taxonomy). Prior to issuance, a designated agency must assess the project’s eligibility, and post-issuance, reporting on the use of funds is mandatory, ensuring strict management of both transparency in fund operation and environmental impact.
The Korea Green Taxonomy is based on economic activities that contribute to achieving six major environmental goals: greenhouse gas reduction, climate change adaptation, sustainable water conservation, transition to a circular economy, pollution prevention and management, and biodiversity conservation.
To reduce the financial burden associated with bond issuance, Busan Transportation Corporation participates in interest subsidy support programs every time it issues green bonds. To date, it has received interest cost support five times, saving approximately 500 million won in expenses, thereby simultaneously expanding eco-friendly investments and enhancing financial soundness.
Lee Byungjin, President of Busan Transportation Corporation, stated, "Successfully issuing Korea Green Bonds for three consecutive years is evidence that the corporation’s commitment to environmental management and execution capabilities are trusted by the financial market," adding, "We will actively utilize green finance to establish a low-carbon, eco-friendly transportation system and faithfully fulfill our responsibilities as a public institution in responding to climate change and achieving carbon neutrality."
Busan Transportation Corporation Monument.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
