South Korea's total ESG-related financing reached KRW 2,012.6 trillion — equivalent to approximately USD 1.5 trillion — by the end of 2024, crossing the KRW 2,000 trillion threshold for the first time since the market was established, according to data published by the Korea Sustainability Investing Forum. The market has more than doubled from its 2019 base.
Annual growth in 2024 came in at 8.9%, the first time the market has recorded a single-digit expansion rate, down from annual growth of 20–30% in earlier years.
INVESTMENTS DOMINATE, SUSTAINABILITY LOANS FALL
ESG investments accounted for the largest share of total financing at KRW 945.5 trillion, representing 47% of the aggregate. ESG loans followed at KRW 753 trillion, representing 37.4%, while ESG bonds contributed KRW 247.5 trillion, accounting for 12.3% of the total.
Sustainability-linked loans — products that tie borrowing costs to the achievement of pre-agreed environmental or social performance targets — declined by 20.6% year-on-year, to KRW 4.7 trillion in outstanding balances. KoSIF data also showed that 29 institutions offered renewable energy financial products.