The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
The Korea Times
amn_close.png
amn_bl.png
National
  • Politics
  • Foreign Affairs
  • Multicultural Community
  • Defense
  • Environment & Animals
  • Law & Crime
  • Society
  • Health & Science
amn_bl.png
Business
  • Tech
  • Bio
  • Companies
  • World Expo 2030
amn_bl.png
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
amn_bl.png
Opinion
  • Editorial
  • Columns
  • Thoughts of the Times
  • Cartoon
  • Today in History
  • Blogs
  • Tribune Service
  • Blondie & Garfield
  • Letter to President
  • Letter to the Editor
amn_bl.png
Lifestyle
  • Travel & Food
  • Trends
  • People & Events
  • Books
  • Around Town
  • Fortune Telling
amn_bl.png
Entertainment & Arts
  • K-pop
  • Films
  • Shows & Dramas
  • Music
  • Theater & Others
amn_bl.png
Sports
amn_bl.png
World
  • SCMP
  • Asia
amn_bl.png
Video
  • Korean Storytellers
  • POPKORN
  • Culture
  • People
  • News
amn_bl.png
Photos
  • Photo News
  • Darkroom
amn_NK.png amn_DR.png amn_LK.png amn_LE.png
  • bt_fb_on_2022.svgbt_fb_over_2022.svg
  • bt_twitter_on_2022.svgbt_twitter_over_2022.svg
  • bt_youtube_on_2022.svgbt_youtube_over_2022.svg
  • bt_instagram_on_2022.svgbt_instagram_over_2022.svg
  • Login
  • Register
  • Login
  • Register
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
  • 1

    US urged to respect Korea's position amid US-China chip war

  • 3

    Korean culture as the solution

  • 5

    Calls grow for regulations on AI technology on webcomics

  • 7

    ChatGPT: boon or bane for banking industry?

  • 9

    CJ, Shinsegae study temple food to expand vegan lineup

  • 11

    Mexico president eyes deals with China, Korea to combat fentanyl

  • 13

    Jeju-based shamanism researcher documents connection between humans, crows

  • 15

    Biden says debt default deal 'very close' while deadline now set at June 5

  • 17

    1 in 6 N. Korean children under 5 suffer from stunted growth: report

  • 19

    Arrest warrant issued for man who opened plane door mid-air

  • 2

    Stray Kids, NCT's Taeyong, ATEEZ gear up for June releases

  • 4

    Chinese carmakers challenge Hyundai Motor, Kia in global markets

  • 6

    Temples celebrate Buddha's birthday

  • 8

    China, Korea agree to strengthen talks on chip industry: Chinese commerce ministry

  • 10

    Korea walks fine line between US, China in chip war

  • 12

    Synth pop regains popularity with K-stars, riding retro boom

  • 14

    Man arrested for opening airplane emergency exit during flight

  • 16

    Africa Day celebrated in Korea with book talk

  • 18

    Russia's Lavrov tells China envoy 'serious obstacles' to Ukraine peace

  • 20

    Tech leads more gains on Wall Street

Close scrollclosebutton

Close for 24 hours

Open
  • The Korea Times
  • search
  • all menu
  • Login
  • Subscribe
  • Photos
  • Video
  • World
  • Sports
  • Opinion
  • Entertainment & Art
  • Lifestyle
  • Finance
  • Business
  • National
  • North Korea
Finance
  • Companies
  • Economy
  • Markets
  • Cryptocurrency
Mon, May 29, 2023 | 16:56
Markets
ESG no longer seems to be priority for corporations amid economic slowdown
Posted : 2022-12-27 16:44
Updated : 2022-12-28 11:36
Anna J. Park
Print PreviewPrint Preview
Font Size UpFont Size Up
Font Size DownFont Size Down
  • facebook
  • twitter
  • kakaolink
  • whatsapp
  • reddit
  • mailto
  • link
gettyimagesbank
gettyimagesbank

ESG bond market shrinks significantly in 2022

By Anna J. Park

With increased external and internal economic uncertainties, corporations have opted for survival as their top priority over considerations of economic, social and governance factors ― ESG principles ― in their management strategies.

As a result, the weight of ESG bonds issued by corporations aiming to achieve environmental, social or governance improvements with the raised capital has been significantly reduced this year. It is a stark contrast from last year, when companies in various sectors, ranging from construction, to energy and retail, focused on issuing sustainable bonds.

According to data by the Korea Exchange (KRX), the proportion of ESG bonds out of aggregate local bonds issued in the third quarter of this year dropped to 12.5 percent, which is about 10 percentage points lower than the same period last year. In particular, the weight of ESG bonds issued by general enterprises plunged to 1.6 percent in the third quarter of this year, which is down considerably from 18 percent logged in the first quarter of last year. In just a year, the atmosphere surrounding it has completely shifted.

Now that general companies tend to avoid issuing ESG bonds, the sustainable bond market has mostly been dominated by state-run companies or financial institutions. It is considered a reversion to a few years back, when general corporations in Korea did not have much room to include ESG goals into their management priorities.

Korea Investors Service (KIS) assessed during a recent seminar that Korea's ESG bond market has somewhat retreated from achievements made in the previous year, adding that it demonstrates that ESG principles have yet to take root firmly in the Korean enterprise scene.

Some view that this year's shrinkage is due to a base effect, meaning that last year's expansive growth in the ESG bond market was such a rare one that this year's performance appears worse off due to the unfavorable year-on-year comparison to last year's exceptional figures.

Whether this year's shrinkage is pronounced due to the base effect or it really does show a regression of the sustainable principle in the country, one thing market participants agree upon is that the key factor attributed to the reduction is that corporations now face more urgent priorities and goals than ESG criteria.

"With continual interest rate hikes, along with liquidity crunch crisis in attracting necessary capital, companies' utmost importance at this juncture is proving their financial soundness for their key business models. The importance of the sustainable and social responsibility agenda has relatively been pushed back in priorities," a market analyst focusing on credit ratings pointed out.

Meanwhile, a research paper published Tuesday by Samil PwC also shows that global CEOs feel the pressure of the dilemma as they face divergent targets of satisfying ESG goals while also seeking short-term profits. The paper advised that corporations are required to find a balance between long-term ESG strategies and short-term profits.


Emailannajpark@koreatimes.co.kr Article ListMore articles by this reporter
 
wooribank
Top 10 Stories
1ChatGPT: boon or bane for banking industry? ChatGPT: boon or bane for banking industry?
2Korea walks fine line between US, China in chip war Korea walks fine line between US, China in chip war
3Jeju-based shamanism researcher documents connection between humans, crows Jeju-based shamanism researcher documents connection between humans, crows
4Man arrested for opening airplane emergency exit during flight Man arrested for opening airplane emergency exit during flight
5Labor unions seek to attract migrant workers at shipyards Labor unions seek to attract migrant workers at shipyards
6Half of medical tourists visiting Korea inspired by K-culture Half of medical tourists visiting Korea inspired by K-culture
7Hyundai Steel receives EPD certification for low-carbon H-beam products Hyundai Steel receives EPD certification for low-carbon H-beam products
8[RAS KOREA] Preserving memories at Cheongju City Archives RAS KOREAPreserving memories at Cheongju City Archives
9Mirae Asset holds ETF Rally 2023 for global expansion Mirae Asset holds ETF Rally 2023 for global expansion
10Gov't moves to assist 3,400 Koreans stranded in typhoon-hit Guam Gov't moves to assist 3,400 Koreans stranded in typhoon-hit Guam
Top 5 Entertainment News
1Chun Woo-hee becomes chameleon con artist in 'Delightfully Deceitful' Chun Woo-hee becomes chameleon con artist in 'Delightfully Deceitful'
2[INTERVIEW] Long-awaited extension of Korean Pavilion at Venice Biennale to be pushed forward INTERVIEWLong-awaited extension of Korean Pavilion at Venice Biennale to be pushed forward
3'Transformers: Rise of the Beasts' raises bar with epic battle scenes 'Transformers: Rise of the Beasts' raises bar with epic battle scenes
4ENHYPEN reaches new career high with latest album 'Dark Blood' ENHYPEN reaches new career high with latest album 'Dark Blood'
5SHINee celebrates 15th anniversary of debut: 'It feels surreal' SHINee celebrates 15th anniversary of debut: 'It feels surreal'
DARKROOM
  • Turkey-Syria earthquake

    Turkey-Syria earthquake

  • Nepal plane crash

    Nepal plane crash

  • Brazil capital uprising

    Brazil capital uprising

  • Happy New Year 2023

    Happy New Year 2023

  • World Cup 2022 Final - Argentina vs France

    World Cup 2022 Final - Argentina vs France

CEO & Publisher : Oh Young-jin
Digital News Email : webmaster@koreatimes.co.kr
Tel : 02-724-2114
Online newspaper registration No : 서울,아52844
Date of registration : 2020.02.05
Masthead : The Korea Times
Copyright © koreatimes.co.kr. All rights reserved.
  • About Us
  • Introduction
  • History
  • Contact Us
  • Products & Services
  • Subscribe
  • E-paper
  • RSS Service
  • Content Sales
  • Site Map
  • Policy
  • Code of Ethics
  • Ombudsman
  • Privacy Statement
  • Terms of Service
  • Copyright Policy
  • Family Site
  • Hankook Ilbo
  • Dongwha Group