South Korean banks expand ESG financing and sustainable practices

Woori Bank released its “2025 ESG Report,” detailing its ESG performance and future direction. The report outlines a dual materiality assessment, the use of an AI Media Index to gauge reputational risk, a 4,686‑ton reduction in greenhouse‑gas emissions through a power‑purchase agreement with the Korea Water Resources Corporation, a goal to raise women board representation to 50%, and a commitment of roughly KRW 10.59 trillion in ESG‑related finance.

Shinhan Bank introduced a new mid‑rate loan product for sub‑prime borrowers, capping interest at 6.9% per year. The loan is part of the “Inclusive Finance 2.0” project and will automatically apply to qualifying customers, excluding certain loan categories. Enhanced underwriting criteria aim to include borrowers with limited credit histories.

NH Agricultural Bank held its first ESG Steering Committee for 2026, reviewing achievements such as securing an additional 4‑MW renewable‑energy PPA, strengthening its green‑credit management system, and planning to expand green‑loan services and transition‑finance operations. The bank also continues to support domestic agricultural producers through its “Hope Agriculture” program, providing financial and promotional assistance to firms that use Korean‑origin raw materials.