KRX will also launch a centralised platform where investors can obtain the investment information and disclosures of each bond, as it seeks to bolster ESG bond markets.
KRX (Korea Exchange) is slated to waive listing fees and yearly managing costs for three years for local issuers of socially conscious bonds starting from 15 June.
“To issue ESG bonds, companies have to get notarisation from other institutions that they are responsible for social investments,” an official at KRX’s bond market rules and regulations team told The Korea Herald.
“In the process, they need to pay for external evaluation fees, but we’d like to reduce their burden.”
Also on 15 June, the bourse will open a website that provides investment details and disclosures of each bond.
Currently, investors need to go the website of each individual bond issuer to obtain ESG information.
“We’ll provide easy access for investors by gathering information on the related bonds on one site,” the KRX offical said. “Within three years, we believe the local ESG bond market expand.”
ESG investing has gained momentum in Korea since 2018, after major institutional investors such as the National Pension Service vowed to exercise a stewardship code.