Bank of Korea Joins BIS Climate Response Corporate Bond Fund...Invests Foreign Currency Assets

Continuous Expansion of ESG-Related Assets
5.45 Billion Dollars in 2020 → 20.38 Billion Dollars in 2024

The Bank of Korea announced on March 3 that it has invested a portion of its foreign currency assets as an initial investor in the Bank for International Settlements (BIS) Climate Response Corporate Bond Fund.

The front view of the Bank of Korea.

This fund was launched on February 26 with the aim of supporting climate risk response and the transition to a low-carbon economy. It invests in corporate bonds with favorable credit ratings, but gives greater weight to companies that excel in climate response factors such as low-carbon transition efforts. The fund was established following consultations with an advisory group consisting of major central banks, including the Bank of Korea, and is managed by the Asset Management Department within the BIS.

Since announcing its basic direction for ESG investment in foreign currency assets in 2021, the Bank of Korea has gradually expanded its ESG-related investments. The scale of the Bank of Korea’s ESG-related assets has continued to grow, from 5.45 billion dollars at the end of 2020 to 20.38 billion dollars at the end of 2024.

The Bank of Korea stated, "By participating in the BIS Asia Green Bond Fund in 2022 and now the Climate Response Corporate Bond Fund, we are joining global climate response efforts. At the same time, this will help strengthen external cooperation with the BIS and overseas central banks, and enhance our international standing."

This content was produced with the assistance of AI translation services.