The headquarters of the Bank of Korea in Jung District, Seoul. (Image courtesy of Yonhap)
SEOUL, Oct. 15 (Korea Bizwire) — South Korea’s central bank and financial regulator have received below-average marks for their response to the climate crisis, ranking in the lower tier among ASEAN+3 economies, according to a new international assessment.
The report by Positive Money, a U.K.-based think tank, evaluated 13 countries in the ASEAN+3 group — comprising the 10 ASEAN members plus South Korea, China, and Japan — on how effectively their central banks and financial authorities are addressing climate-related risks.
South Korea scored 24 out of 100, placing eighth overall, behind China (50), Malaysia (43), Singapore (42), Indonesia (40), the Philippines (40), Japan (39), and Thailand (25).
The breakdown reveals a stark imbalance between the nation’s monetary and financial policy approaches. The Bank of Korea earned relatively solid marks, scoring 13 out of 50 for monetary policy — ranking third after China and Japan — for measures such as aligning foreign reserves with climate objectives and offering favorable lending terms to banks supporting green small businesses.
By contrast, the Financial Services Commission received only 3 out of 50 points for financial policy, one of the lowest scores among the countries assessed, surpassing only Cambodia, Laos, Brunei, and Myanmar.
The report criticized Seoul for lacking “core policies to align the financial sector with a carbon-neutral pathway” and noted the country’s limited issuance of green bonds and weak interagency coordination between the central bank and the government.
South Korea also scored 4 out of 10 in research and advocacy and another 4 out of 20 in exemplary practice, further underscoring the nation’s tepid engagement in climate finance initiatives.
Representative Cha Kyu-keun of the Cho Kuk Innovation Party, citing the report during a parliamentary finance committee session, warned that the Bank of Korea must take greater leadership in climate risk governance. “The climate crisis can easily escalate into a systemic financial risk,” he said, calling for the central bank to assume a stronger supervisory and coordinating role.
Analysts say the findings highlight a growing gap between South Korea’s rhetoric on green transition and its financial system’s readiness to manage climate-related risks — a disconnect that could become increasingly costly as global markets tighten standards for sustainable finance.
M. H. Lee (mhlee@koreabizwire.com)
