Launches website dedicated to socially responsible investment (SRI) bonds with all information on SRI bonds
The KRX and KIBO sign a business agreement to support the listing of materials, parts and equipment companies at a ceremony to for giving support to 100 promising small and medium-sized companies on June 15. From right are Chung Ji-won, chairman of the Korea Exchange and Park Young-sun, minister of SMEs and startups and Jeong Yoon-mo, CEO of KIBO. (Photo:KRX)
The Korea Exchange (KRX), the Ministry of SMEs and Startups, Korea Technology Finance Corporation (KIBO) held a “declaration ceremony for supporting 100 promising small and medium-sized companies” on June 15 along with the Small Company Support Group, which supports small companies in the material, parts and equipment fields.
On the same day, they announced their support plan on R&D, funds, guarantees and listing on the stock market for promising small companies’ rapid growth at the K Hotel in Seoul. Subsequently, a joint declaration was completed to share grown companies’ achievement know-how of with growing companies and local communities.
Chung Ji-won, chairman of the KRX, signed an MOU with Jeong Yoon-mo, CEO of KIBO, on supporting small promising companies when they want to have IPOs or list their companies on the KRX.
Representatives of small and medium-sized companies jointly declared that they would create a culture of growing together by giving back to society through technological advice for startups, community contributions, and job creation.
“We will continue to provide full support to small and medium-sized companies in Korea's representative materials, parts and equipment sectors so that they can lead technological independence and become global leading companies,” said minister of SMEs and startups Park Young-sun.
The KRX launched a website on June 15 dedicated to socially responsible investment (SRI) bonds (http://sribond.krx.co.kr) which provides all information on SRI bonds.
The issuing proceeds of SRI bonds are used for projects that are eco-friendly or generate social benefits, and they are called green, social and sustainable bonds. They are also referred to as ESG, thematic and social contribution bonds.
There had been no institution with public confidence that provided information and statistics on the SRI bonds, so it was difficult for investors to get such information at once as each SRI bond issuer disclosed SRI bond information separately.
In order to provide confident and transparent information on the SRI bonds, the KRX opened an SRI bond dedicated segment, a public information portal. An English portal is also available (http://sribond.krx.co.kr/en) for foreign investors.
Meanwhile, to boost up the SRI bond market in line with the opening of the SRI bonds-dedicated segment, the KRX signed MOUs with external evaluation institutions and provides financial supports for SRI bond issuers.
The KRX concluded MOUs with domestic professional institutions to help SRI bond issuers smoothly receive external reviews.
SRI bond issuers must establish a bond management framework and be reviewed by external professional institutions whether they comply with the principles established by international organizations including the International Capital Market Association (ICMA), the Climate Bonds Initiative (CBI).
The SRI bond issuers are exempt from listing fees and annual dues over the following three years to reduce their funding expenses.
The KRX said that the opening of the SRI bonds-dedicated segment will serve as an opportunity to revitalize the domestic SRI bond market.
By registering SRI bonds with the SRI bond dedicated segment, those bonds are officially recognized as qualified SRI bonds and can secure credibility that allows SRI bond issuers to make stable financing through the domestic bond market.
In the meantime, the KRX visited Narutbae Village in Yeoncheon-gun, Gyeonggi-do on July 10 and conducted volunteer work to help farmers harvest tomatoes. KRX employees visited the rural village that need help due to a lack of labor, helped farmers harvest tomatoes in the busy farming season and purchased 105 bags of rice produced in the farming village.
They donated the rice to the marginalized who need help such as single-parent families.
The KRX formed a shared growth relationship with the village in November 2008. Since then, KRX employees have visited the village regularly every year to provide volunteer services to the village.
They have donated blood pressure taking devices to the community center and had CCTVs installed in the village in an effort to promote exchanges between the KRX and the village.