South Korea’s biggest asset managers have indicated they will step back from funding the country’s coal industry, a win for global investors and activist groups that have pushed local corporates to cut ties with fossil fuels.
The 10 firms, which include Hanwha, KB Asset Management and Shinhan BNP Paribas, have said they will not invest in the Won4.9tn ($4.5bn) Samcheok Blue Power plant in Gangwon province. It is expected to be the final new coal power project built in the Asian nation.
The pledge comes after President Moon Jae-in in October promised that Korea would achieve carbon neutrality by 2050 and spend Won8tn on environmentally-friendly growth initiatives. But many Korean manufacturers have found it hard to shift away from fossil fuels because of their heavy dependence on coal.
The Korea Beyond Coal campaign — a network of civic and environmental groups — asked the country’s biggest 30 asset managers if they planned to buy bonds that will be issued…