[Consumption value] The banking industry is publishing sustainable management reports and issuing ESG bonds.

[Consumerwide - Hayoung Chang Reporter/Yohan Bok Reporter]  Kookmin Bank has published a sustainable management report, while Woori Bank is issuing the ESG bond. The ESG report of Kookmin Bank is the fifth report, and it contains the target ESG strategy and activities of the group. Woori Bank succeeded in issuing the 400 billion-scale subordinated bonds, which are the first subordinated bonds from commercial banks in Korea this year.

KB has published the 2023 KB Green Wave Report, which is their fifth sustainable management report that addresses the ESG future and current status of environmental management at KB through four core themes: "Invest Green,"  "Practice Green,"  "Promote Green," and "Manage Green," along with detailed data about various projects and activities to achieve the target ESG strategy of the group, "KB Green Wave 2030" and "KB Net Zero S.T.A.R."

KB Green Wave 2030 aims to expand their ESG product, investment, and loan to 50 billion won (environmental sector 25 billion won) by 2030, and KB Net Zero S.T.A.R. means KB aims to complete carbon neutralisation by 2040 and 2050 each in internal carbon emissions and asset portfolio emissions. KB is also introducing their efforts, including the Equator Principles Implementation Report, which focuses on systemically managing the influence of large development projects on society and the environment. The KB Green Wave Report is part of their environmental management, and it's been published since 2020 in digital report form.

Woori Bank has announced on June 26 that they have succeeded in issuing the 400 billion-scale subordinated bonds (conditional asset stock) as an ESG bond. This is the first subordinated bond issued from commercial banks in Korea, and it has a 10-year yield of 3.89% (Korea 10-year Treasury Close + 63 bp). Woori predicts that the BIS rate of Woori Bank will rise to 0.23%p by issuing the bond.

Woori Bank said, "We've successfully issued our bond based on the trust of institutional investors, while there is a growing expectation for performance turn-around this year. Based on the improvement in capital adequacy and ESG management practice responsibility, we will solidify the foundation for sustainable growth."