RISKS GROW FOR SOUTH KOREA’S OVERSEAS COAL INVESTMENTS WITH PRIVATE FUNDERS AVOIDING COAL AND COVID-19 CREATING CONSTRUCTION DELAYS, SOUTH KOREA’S PUBLIC FINANCE INSTITUTIONS FACE NEARLY $6 BILLION IN POTENTIAL STRANDED ASSETS

South Korean public finance institutions have invested $5.6 billion in overseas coal plants, primarily in Vietnam and Indonesia, creating a significant risk of stranded assets. This trend persists despite the Democratic Party's Green New Deal promising a phase-out of such financing and a global decline in private coal funding. The economic viability of coal is deteriorating as solar and wind power costs fall, with projections that renewables will be cheaper than existing coal in Southeast Asia by 2028. Additionally, the COVID-19 pandemic has depressed electricity demand and caused construction delays, further destabilizing these investments.

• South Korean public finance institutions, including the Export-Import Bank of Korea, Korea Trade Insurance, Korean Development Bank, and KEPCO, have invested $5.6 billion in overseas coal-fired power plants since 2013. The primary recipients of this funding are Vietnam ($4.3 billion) and Indonesia ($1.2 billion), followed by Chile ($100 million).
• There is a high risk of stranded assets for new coal projects in Southeast Asia because solar PV and onshore wind are projected to be cheaper to build than running existing coal plants by 2028. Consequently, a plant entering operation in 2024 might operate for less than five years before becoming economically unviable.
• South Korea's public financing of coal contradicts the Democratic Party's Green New Deal, which includes a commitment to phase out public support for both domestic and overseas coal.
• The COVID-19 pandemic has exacerbated the risks for coal investments by depressing electricity demand and causing construction delays. In Indonesia, the pandemic led to force majeure declarations at six plant locations and affected 11,136 MW of construction across Indonesia, Vietnam, and the Philippines.
• Private financial institutions are increasingly avoiding coal; at least 130 major global financial institutions have restricted thermal coal funding, and analysts report an 80% decline in coal financing between 2010 and 2018.
• Specific high-risk projects under consideration or funding include the Jawa-9 and Jawa-10 plants in Indonesia, where Korean public lenders' exposure could reach $1.55 billion, and the Vung Ang-2 plant in Vietnam, where KEPCO is considering acquiring a 40% share.

APA

Global Energy Monitor (2020). RISKS GROW FOR SOUTH KOREA’S OVERSEAS COAL INVESTMENTS WITH PRIVATE FUNDERS AVOIDING COAL AND COVID-19 CREATING CONSTRUCTION DELAYS, SOUTH KOREA’S PUBLIC FINANCE INSTITUTIONS FACE NEARLY $6 BILLION IN POTENTIAL STRANDED ASSETS. https://globalenergymonitor.org/sites/default/files/migration/reports/SKRisks-English-R5_11.pdf

Chicago

Global Energy Monitor. RISKS GROW FOR SOUTH KOREA’S OVERSEAS COAL INVESTMENTS WITH PRIVATE FUNDERS AVOIDING COAL AND COVID-19 CREATING CONSTRUCTION DELAYS, SOUTH KOREA’S PUBLIC FINANCE INSTITUTIONS FACE NEARLY $6 BILLION IN POTENTIAL STRANDED ASSETS. 2020. https://globalenergymonitor.org/sites/default/files/migration/reports/SKRisks-English-R5_11.pdf.

Wikipedia

{{cite report |author=Global Energy Monitor |title=RISKS GROW FOR SOUTH KOREA’S OVERSEAS COAL INVESTMENTS WITH PRIVATE FUNDERS AVOIDING COAL AND COVID-19 CREATING CONSTRUCTION DELAYS, SOUTH KOREA’S PUBLIC FINANCE INSTITUTIONS FACE NEARLY $6 BILLION IN POTENTIAL STRANDED ASSETS |date=April 2020 |url=https://globalenergymonitor.org/sites/default/files/migration/reports/SKRisks-English-R5_11.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{globalenergymonitor2020risks, author = {{Global Energy Monitor}}, title = {{RISKS GROW FOR SOUTH KOREA’S OVERSEAS COAL INVESTMENTS WITH PRIVATE FUNDERS AVOIDING COAL AND COVID-19 CREATING CONSTRUCTION DELAYS, SOUTH KOREA’S PUBLIC FINANCE INSTITUTIONS FACE NEARLY \$6 BILLION IN POTENTIAL STRANDED ASSETS}}, institution = {Global Energy Monitor}, year = {2020}, month = apr, url = {https://globalenergymonitor.org/sites/default/files/migration/reports/SKRisks-English-R5_11.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }