Abstract

Recently, ESG bond issuance has been gradually spreading to banks and non-financial private companies in Korea. However, the Korean ESG bond market is still in its infancy in terms of size, diversity and investor base compared to the global ESG bond market. In other words, ESG bonds are rapidly forming in the global market, but are still in the formation stage in the domestic market, and various policy and practical measures such as system, incentives, and infrastructure are needed to activate them. In this paper, we examine the domestic and international status of ESG bonds in relation to responsible investment. In addition, this paper explores specific measures to revitalize the domestic ESG bond market in four aspects: establishing ESG bond standards, procedures and regulations, increasing ESG bond investment demand, increasing ESG bond issuance, building market infrastructure and market efforts. This study is expected to contribute to the development of the domestic ESG bond market and responsible investment.

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