The Export-Import Bank of Korea headquarters in Seoul. (Eximbank)
The Export-Import Bank of Korea said Monday it plans to set up a global environmental, social and governance-related fund worth at least $200 billion won ($180 million) to support local firms seeking to expand businesses overseas.
The size of the fund could be expanded and the state-run bank will invest a combined 50 billion won in the fund.
Once the manager of the fund is determined, it would focus on supporting the global forays of businesses under seven areas tied to the Green New Deal and Digital New Deal initiatives. The seven areas include green energies such as hydrogen, solar and wind, 5G, healthcare and more.
The fund aims to help the firms with their trade, overseas investments, establishment of local subsidiaries, while helping them adopt ESG values in the process.
The firms receiving the investment will be assessed by outside ESG experts for the Eximbank to clearly see the ESG-related areas requiring improvement.
Eximbank said that it plans to invest a total of 80 trillion won in the next decade to support globalization of the Korean New Deal initiative. Various types of investments including loans, equity securities and funds would be utilized in the process, the bank said.
“ESG-related investments led by developed economies have risen as a global keyword, with the COVID-19 pandemic, climate change and pollution luring the global investors’ interest in sustainable businesses,” Eximbank CEO Bang Moon-kyu said in a statement.
“For our firms to dominate the global market and establish a sustainable investment cycle, the ESG values must stick as a key system in management,” he added.
By Jung Min-kyung (email@example.com