Korea Institute of Finance

Financial Research Brief

25-15 Jul 26, 2025

Sovereign Green Bond Issuance: Global Trends and Policy Implications

South Korea has legislated its goal of achieving carbon neutrality by 2050 and is poised to mobilize large-scale investments. Moreover, discussions are underway to introduce sovereign green bonds as a means to diversify revenue streams to secure stable funding for the Climate Response Fund, which plays a pivotal role in combating climate change. Since Poland issued the world’s first sovereign green bond in 2016, the market has experienced a rapid growth, reaching $134 billion as of 2024. While ...

Financial Review Jinsoo Bae

Streamlining Policy-Based Microfinance Products and Enhancing Private Sector Linkages

Policy Issue in Focus Jung-Han Koo

Special Risk-Weighting Provisions: Overseas Cases and Policy Implications

Policy Issue in Focus Seok Ki Kim

All KOSPI-Listed Firms Subject to Mandatory Corporate Governance Disclosure, July 2025 (FSC)

Policy Issue in Focus KIF

Challenges in Shifting from Conventional Real Estate-Based Lending to Financing Focusing on Business Viability

Recently, the increase in South Korea's debt has been primarily driven by household mortgage loans and corporate real estate-related loans, leading to heightened financial risks. This concentration in real estate lending could, in the event of an economic downturn, increase the principal and interest repayment burdens for households and companies, causing a rise in delinquencies. This, in turn, could create a vicious cycle where financial institutions tighten risk management and real estate pric...

20250722 Seok Ki Kim, Yeonju Baik, KyooBok Lee

Global ESG Initiatives and Their Impact: The Case of RE100

Since the 2015 Paris Agreement, private-sector efforts to address climate change and reduce carbon emissions have expanded, with ESG and sustainability initiatives becoming an important part of this trend. However, rigid targets, complex standards, and the absence of legal requirements have raised skepticism and concerns about greenwashing. In this context, this study examines the impact of RE100 on corporate environmental performance. After joining RE100, companies generally increased their use...

20250708 Jiwon Park

The Impact of Climate Change Physical Risks on the Insurance Industry and Tasks Ahead

This study empirically investigates the impact of climate change?specifically extreme precipitation?on the financial performance in the Korean insurance industry. Using climate projections for the period 2021 to 2040 under four representative climate scenarios provided by the Intergovernmental Panel on Climate Change (IPCC), we estimate potential damages from natural disasters and project claims paid and loss ratio for three major policy types: crop insurance, livestock disaster insurance, and...

20250627 Sukho Lee, Sangyong Han

Domestic and International Cases of Green FinTech and Policy Implications

The Korean government has been actively advancing a range of policies aimed at achieving net-zero carbon emissions by 2050. In line with this national agenda, financial authorities have extended support to corporations and are in the process of reforming the disclosure system to facilitate a smooth transition to a low-carbon economy. Within this context, green fintech emerges as a strategic sector that can harness digital technologies and high-quality data to deliver innovative climate risk solu...

20250421 Jeong Ho Suh

Alternative Credit Scoring Regulatory Framework: Comparison Between Indonesia and Korea

The report focuses on the alternative credit scoring (ACS) system, a topic selected through discussions between both countries. It examines the current status and policy challenges of each nation and derives implications for regulatory improvements in Indonesia. The study findings indicate that South Korea has established an innovative framework for ACS, with effectively managed regulations on financial consumer protection and data governance. In contrast, while the demand for ACS in Indonesia i...

20250416 Sanjung Purnama Budiarjo, Chun Sung Jun

Leveraging South Korea's Strategic Approach: Developing a Robust NPL Resolution Framework for Indonesia

The study focused on the Non-Performing Loan (NPL) system, a topic selected through discussions between both countries. During the research, South Korea shared its experience in stabilizing the financial market through the establishment of a government-led Asset Management Company (AMC), the issuance of Asset-Backed Securities (ABS), and active participation of the private sector. In contrast, Indonesia faces challenges in NPL management, leading to a decline in financial institutions' lending c...

20250416 F. Ziesco Yoga Sulistyo, Lee Kang San