Bank of Korea Prepares Against Climate-Related Risks

The Bank of Korea (BOK) has started searching for a doctoral researcher who will be measuring the entity's exposure to climate-related risks.

The duties include analyzing the impact of climate-related risks on its assets, debts, soundness, and resilience.

The search comes at a time when South Korea's financial authorities and companies are seeking to avoid a climate-related systematic financial crisis.

According to a Shinhan Financial Group official, with climate change having a larger impact on the macro-economy and the financial system, it's necessary to climate change risk and to invest in sustainable infrastructure such as the renewable energy industry.

In December, Shinhan Financial Group became the first Korean financial firm to declare principles to counteract climate change and comply with the Paris Agreement to limit global average temperature to well below 2 degrees Celsius.

Shinhan aims to cut the greenhouse gas emission by 20 percent via a 20 trillion won investment in the eco-friendly industry while issuing issued green and sustainability bonds worth $500 million.

KB Financial Group also reinforced the management regarding environmental, social, and governance (ESG) factors in December.

The International Monetary Fund (IMF) has been raising awareness on the financial sector's role in climate change.

In October, the IMF conducted a panel discussion under the theme, "Can central banks fight climate change?"