More ESG bonds issued in 2024 but by less firms: report

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Sales of environment, social and governance (ESG) bonds in Korea increased from a year earlier in 2024, driven by government-backed financial support, but the number of issuing firms declined, a report showed Tuesday.

According to the report by Korea Investors Service Inc., a total of 47.2 trillion won ($34.3 billion) worth of ESG bonds were issued last year, up 12.2 percent from the previous year.

An ESG bond is a type of sustainability debt offering aimed at financing corporate activities in environmentally friendly and sustainable projects.

The report attributed the rise in ESG bond issuance to government-led financial policies promoting green initiatives.

Despite the growth in total issuance, the report offered a cautious outlook for the local ESG bond market, noting the number of issuers has dropped sharply to 91 in 2024 after peaking at 154 in 2021.