Lee Chan-jin: "Turning the Climate Crisis into a New Growth Opportunity"... Promoting the Establishment of Korean-Style Transition Finance

[Financial News] Lee Chan-jin, Governor of the Financial Supervisory Service, announced that he will support the stable establishment of "Korean-style transition finance" to underpin the low-carbon transition of domestic companies. The plan is to help ensure the early establishment of transition finance guidelines and the climate disclosure system, as well as to expand the development of climate-related financial products.
The Financial Supervisory Service announced on the 2nd that it held the 'Future Finance in the Era of Low-Carbon Transition' international conference with Ewha Womans University at Lee Sambong Hall in the ECC at Ewha Womans University in Seodaemun-gu, Seoul.
In his opening remarks that day, Governor Lee said, "We will promote the successful establishment of Korean-style transition finance," and urged financial institutions to "make efforts to ensure a smooth supply of funds to companies pursuing a low-carbon transition by utilizing the guidelines going forward."
Last February, the Financial Supervisory Service announced the 'Transition Finance Guidelines' jointly with government ministries to support the low-carbon transition. The guidelines were developed to suit the characteristics of domestic companies while taking into account the systems in Europe and Japan, which have already adopted transition finance. Governor Lee said, "Based on global alignment, they are expected to play a significant role in the low-carbon transition of Korean companies."
The Financial Supervisory Service plans to actively support the early establishment of climate disclosure, which is scheduled to become mandatory in 2028, together with relevant ministries. Governor Lee emphasized, "We will help establish the system so that domestic and foreign investors can transparently and promptly obtain information related to climate responses, such as the low-carbon transition plans of domestic listed companies," adding, "I urge companies to make every effort to faithfully provide disclosure information that complies with climate disclosure standards."
It will also work to create a market ecosystem so that the financial sector can use the response to the climate crisis as a new growth opportunity. Governor Lee said, "We plan to support the financial sector in using the response to the climate crisis as a new growth opportunity," adding, "We will support the appropriate provision of funds for energy transition and climate technology, which are being promoted as part of productive finance." He continued, "If necessary, we will expand the development of climate-related financial products."
In 2021, the Financial Supervisory Service published the 'Climate Risk Management Guidelines' and has since conducted 'Climate Stress Tests' with relevant institutions to measure the impact of climate change on the financial sector.
The conference was attended by Governor Lee, Ewha Womans University President Lee Hyang-sook, Prime Minister Han Seong-sook, National Assembly Political Affairs Committee Chairman Yoo Dong-soo, British Ambassador to Korea Colin Crooks, Japanese Ambassador to Korea Mizushima Koichi, European Union Chamber of Commerce in Korea Chairman Philippe Van Hoof, and CEOs of foreign financial companies.
The event introduced climate finance policy cases and trends from Japan, Hong Kong, the United Kingdom, and Australia. Participants shared financial supervisory policies and directions for market development related to the low-carbon transition, as well as financial institutions' strategies for responding to the climate crisis.

[email protected] Lee Hyun-jung Reporter