KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES

This report by the Climate Bonds Initiative, commissioned by SK Securities, analyzes the state of the climate bond market in Korea as of March 2018. It highlights that while Korea possesses a massive overall bond market and strong climate policy commitments, its specific climate bond market remains underdeveloped. The document identifies significant untapped potential for growth, outlines barriers to expansion, and provides comparative examples of regulatory and incentive-based successes in other global markets to suggest a roadmap for Korean policymakers and investors.

• Korea's climate bond market is underdeveloped relative to its overall financial strength, with only six bonds issued by four different issuers to date. Despite this, it ranks as the fifth largest climate bond market in the Asia-Pacific region, trailing China, India, Japan, and Australia.
• The total amount of climate bonds issued in Korea up to the report's publication was USD 2.05 billion. Key issuers include the Export-Import Bank of Korea (USD 950m), Hyundai Capital Services (USD 500m), Korea Development Bank (USD 300m), and Hanjin International (USD 300m).
• There is significant latent potential for climate bond growth in Korea, evidenced by an identified USD 18 billion in outstanding bonds that finance climate infrastructure (including rail transportation, energy, and forestry) but are not officially labeled as 'climate' bonds.
• Korea has established a strong policy foundation for climate action, including a commitment to reduce GHG emissions by 37% against business as usual by 2030. In 2015, it became the first Asian country to implement a national emissions trading scheme (ETS), which is now the second largest globally after the EU ETS.
• Several barriers hinder the growth of the Korean climate bond market, including a lack of awareness among issuers and investors regarding ESG issues, a lack of local market guidance or standards, and perceived transaction costs for external reviews (estimated between USD 10,000 and USD 40,000).
• The report suggests that Korea can stimulate its market by adopting strategies used elsewhere: regulatory guidance (like China's PBoC and NDRC), official requirements (like India's SEBI), voluntary guidelines (like Japan's Ministry of the Environment), or financial incentives (such as Singapore's Green Bond Grant Scheme or Malaysia's tax deductions).

APA

Boulle, B., & Peck, K. (2018). KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES. Climate Bonds Initiative. https://www.climatebonds.net/files/drupal-files/files/CBI-Korea_Market-Final-01A.pdf

Chicago

Boulle, Bridget, and Kwangyul Peck. KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES. Climate Bonds Initiative, 2018. https://www.climatebonds.net/files/drupal-files/files/CBI-Korea_Market-Final-01A.pdf.

Wikipedia

{{cite report |last1=Boulle |first1=Bridget |last2=Peck |first2=Kwangyul |title=KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES |publisher=Climate Bonds Initiative |date=March 2018 |url=https://www.climatebonds.net/files/drupal-files/files/CBI-Korea_Market-Final-01A.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{boulle2018korea, author = {Boulle, Bridget and Peck, Kwangyul}, title = {{KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES}}, institution = {Climate Bonds Initiative}, year = {2018}, month = mar, url = {https://www.climatebonds.net/files/drupal-files/files/CBI-Korea_Market-Final-01A.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }