ESG spending by Korea Inc. could reach 150 trillion won

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ESG spending by Korea Inc. could reach 150 trillion won

Published: 05 Dec. 2021, 17:08 Updated: 05 Dec. 2021, 17:52

Korea’s top 30 companies pledged to spend over 150 trillion won ($126.6 billion) this year on so-called environmental, social and governance (ESG) management systems, a report from the Federation of Korean Industries (FKI) said Sunday.

According to the report, Korea’s 30 biggest companies declared they will invest 153.2 trillion won by 2030 in businesses related to ESG, especially on going green.

A lot will be spent on mergers or acquisitions of companies with environment-related businesses. Earlier this year, SK bought a 10 percent stake in Japanese eco-friendly materials manufacturer TBM for 140 billion won, while SK ecoplant acquired four waste-disposing companies including Daewon Green energy firm.

In a similar move, Hanwha Solutions bought renewable energy company RES France for 727 million euros ($822.5 million) and Hyosung Heavy Industries poured in 10.7 billion won to establish a new liquid hydrogen manufacturer with Germany’s chemical company Linde.

“Major companies are changing their business portfolios to [include businesses such as] renewable energy, hydrogen economy, battery and circular economy,” the FKI report said. “This year has been the start of a period where private companies are issuing bonds to finance their green businesses.”

BY YOON SO-YEON [[email protected]]