Second-Party Opinion Download

Sustainalytics is of the opinion that the Green and Sustainability (“G&S”) Bond Framework of the Republic of Korea (“ROK”) is credible and impactful, and aligns with the Green Bond Principles (GBP), Social Bond Principles (SBP) and Sustainability Bond Guidelines (SBG) 2018. This assessment is based on the following:

USE OF PROCEEDS

The eligible categories for the use of proceeds are aligned with those recognized by the GBP, SBP and SBG. Sustainalytics considers that the use of proceeds for (i) Green Buildings, (ii) Waste Management/Waste to Energy (iii) Water and Wastewater Management, (iv) Renewable Energy, (v) Clean Transportation, (vi) Energy Efficiency, (vii) Healthcare, (viii) Education, (ix) Affordable Basic Infrastructure, and (x) Venture Investment will lead to positive environmental and social impacts while advancing the UN Sustainable Development Goals.

PROJECT EVALUATION/SELECTION

Korea Investment Corporation (“KIC”), the asset manager for the ROK bond issuances, has established a Sustainability Working Group, including Investment Strategy Team, Alternative Investment Strategy Team, Infrastructure Team, Private Equity Team and Real Estate Team, which selects potential Eligible Projects. The chosen projects go through an approval by the CIO before final evaluation by the Investment Committee and Investment Working Committee. Selected Eligible Projects will be reviewed by KIC on a quarterly basis based on established eligibility criteria. The process for evaluation and selection is aligned with market practice.

MANAGEMENT OF PROCEEDS

KIC commits to track and monitor the use of proceeds including bond transaction details and allocation of proceeds, including (i) amount of proceeds, (ii) aggregate amount of proceeds, (iii) balance of unallocated proceeds and (iv) ex-ante environmental benefits of each eligible asset. Unallocated proceeds will be managed according to the KIC’s investment guidelines and might be temporarily invested in ESG funds or liquid money market instruments. The processes for management of proceeds are aligned with market practice.

REPORTING

KIC commits to publish a “Green Bond and Sustainability Bond Report” annually, until full allocation of proceeds. The report will include (i) a summary of the issued G&S bonds and relevant details, (ii) allocation reporting, including amount of proceeds allocated, a description of major Eligible Assets financed, the remaining balance of unallocated proceeds and, where feasible, examples of Eligible Assets, and (iii) Impact reporting, which will be disclosed by KIC covering relevant environmental and social impact metrics based on each eligible category. Sustainalytics views the allocation reporting and impact reporting as aligned with market practice.