Out-Law News | 26 Feb 2021 | 11:18 am |
South Korea's state-owned Exim bank has announced a KRW$200 billion ($180 million) environmental, social and governance related (ESG) fund to invest in green energy projects.
Investment will be focused on hydrogen energy, solar and wind power, rechargeable battery and energy storage systems.
It is reported that the state-owned bank will invest a combined KRW50bn in the fund.
The fund aims to help companies trade, invest overseas and establish local branches, as well as help them to adopt ESG values.
Energy expert George Varma at Pinsent Masons, the law firm behind Out-Law, said: “This funding regime is a step in the right direction for South Korea. As South Korea is collaborating with various countries around the world in the renewable energy space, particularly hydrogen, as well at the significant planned domestic growth in its renewable energy production, this funding will be invaluable. There are a number of South Korean entities very active in markets across the APAC and MENA regions and this funding availability will drive their investment into new markets, as well as create growth in its domestic market.”
South Korea’s government launched the Korean New Deal in 2020 including Digital New Deal and Green New Deal policies and an investment of KRW160 trillion ($144bn).