KOREA CLIMATE BOND MARKET OVERVIEW AND OPPORTUNITIES

The report finds that while Korea has a massive overall bond market and strong climate policies, its climate bond market remains small with only six bonds issued by four entities. It identifies a potential USD 18bn in unlabelled climate-aligned bonds and suggests that Korea could lead the Asian region by adopting national guidelines, sovereign issuance, and tax incentives, drawing on successful models from China, India, and other ASEAN nations.

• Korea's climate bond market is underdeveloped relative to its overall financial strength, with only six bonds issued by four different issuers to date.
• The existing climate bond issuers in Korea include the Korea Export-Import Bank (KEXIM), Hyundai Capital Services, Korea Development Bank (KDB), and Hanjin International, with total issuance amounting to USD 2.05 billion.
• There is significant untapped potential for growth, as a study identified USD 18 billion in outstanding bonds that finance climate infrastructure but lack a 'climate' or 'green' label.
• Korea has established strong climate policy foundations, including the 2009 Green Growth Act and the implementation of an emissions trading scheme (ETS) in 2015, which is now the second largest in the world.
• Several barriers hinder the expansion of the Korean climate bond market, including low market awareness among issuers and investors, a lack of local standards, slightly higher transaction costs for first-time issuers, and risks associated with international issuance.
• To stimulate the market, the report recommends that the Korean government pursue strategic sovereign issuance, develop national green finance guidelines, and introduce tax incentives for investors.

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} }