Hana Financial, KakaoBank obtain highest MSCI ESG rating

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Korea’s two leading financial institutions — Hana Financial Group and KakaoBank — have earned the highest AAA rating in the latest environmental, social and governance (ESG) assessment by global index provider Morgan Stanley Capital International (MSCI), the two said Sunday.

The recognition highlights the growing global competitiveness of the Korean financial sector’s sustainable ESG management, strengthening foreign investor confidence in the country.

The MSCI evaluates 8,500 listed companies annually for performance in corporate governance, data protection, consumer rights and climate-risk management. The rating is closely followed by institutional investors worldwide and often influences foreign investment decisions and index inclusion in ESG-focused funds.

KakaoBank secured its first-ever AAA rating, a notable climb from its initial BB rating in 2021 and a further upgrade from AA in February this year.

The Kakao subsidiary is the sole internet-only bank to have secured the top rating. MSCI cited Kakao Bank’s strong performance in data privacy and cybersecurity, consumer protection and corporate governance.

It has built a consumer protection framework, operating teams for consumer protection planning, fraud response and financial data safety, and also offers financial education programs for vulnerable groups, including children, youth and seniors.

Hana Financial has achieved the AAA rating for two consecutive years, recognized for advancements in board independence, transparency, employee welfare and ethics drives, along with strengthened climate-risk assessment and sustainable finance.

Hana Financial is committed to creating shared value among customers, employees, shareholders and the local community.

“We will continue to fulfill our responsibilities as a global ESG leader and expand inclusive, sustainable finance,” Hana Financial said.

Hana has continued to advance ESG-priority management since 2021, establishing a sustainability division to implement a mid- to long-term ESG roadmap. It has also expanded green and transition finance initiatives and inclusive-finance programs for vulnerable groups.