The Suralaya coal-fired power plant in Banten Province, Indonesia.
SEOUL, Feb. 9 (Korea Bizwire) — A growing number of Indonesian K-pop fans are directing their frustration at Hana Bank, accusing the South Korean lender of backing projects tied to coal-fired power despite its public commitment to phase out coal financing.
The campaign, organized by the climate advocacy group Kpop4Planet, has gathered support from 12 Indonesian fan clubs dedicated to stars such as G-Dragon and BigBang. Launched on Dec. 10 under the slogan “Hana Bring K-pop, Not Coal,” the initiative has reached an online audience of roughly 280,000 followers.
At issue is a 2022 syndicated loan arranged by Hana Bank’s Indonesian subsidiary and several local lenders to a subsidiary of Harita Group, one of Indonesia’s largest nickel producers.
The $530 million financing supported debt refinancing and the construction of a nickel smelter on Obi Island, according to local media reports and the Dutch nonprofit Recourse, which monitors development banks and financial institutions.
Environmental groups say the smelter relies heavily on electricity generated by captive coal-fired power plants built to supply industrial demand. Global Energy Monitor estimates that at least 1,630 megawatts of coal-fired capacity are operating to support the facility.
More broadly, a recent report by the Centre for Research on Energy and Clean Air and Global Energy Monitor found that Indonesia has more than 31 gigawatts of captive coal power operating or planned — nearly triple the level in 2023 and roughly equivalent to Germany’s total coal capacity in 2024.
The expansion of coal-powered industrial plants has complicated Indonesia’s pledge to reach carbon neutrality by 2060, even as the country benefits from a nickel boom driven by demand for electric vehicle and energy storage batteries.
Indonesia’s four largest nickel producers, including Harita Group, emitted an estimated 15.3 million metric tons of carbon dioxide equivalent in 2023, about 2 percent of the nation’s total emissions.
On Feb. 2, Kpop4Planet campaigners Lee Dayeon (left) and Nurul Sarifah (right) call for an end to financial support for coal-fired power projects in front of Hana Financial Group’s headquarters in Jung-gu, Seoul. (Photo courtesy of Kpop4Planet)
Hana Bank said the original loan agreement included environmental, social and governance clauses prohibiting funds from being used to build coal-fired power plants. The bank added that it is “realistically impossible” to refuse financing to all companies that consume electricity generated from coal.
The bank said its Indonesian unit participated in $15 million of the initial $530 million loan, which has since been repaid. In 2024, it joined a $500 million refinancing package with a $30 million share, leaving an outstanding balance of $25.5 million.
Activists remain unconvinced. Nurul Sarifah, a campaigner with Kpop4Planet who traveled to Seoul to meet Hana Bank officials, said the core issue is that the nickel smelter operates primarily on power from newly built captive coal plants.
“Even if the financing did not directly build the power plant, it supports an industrial project that depends on coal,” she said, adding that she was disappointed by what she described as the bank’s reluctance to seek remedies for past involvement.
The group is calling on Hana Bank to halt financing for companies that rely on new coal-fired facilities and to strengthen its climate finance policies and loan screening processes.
Sarifah acknowledged that the nickel industry has contributed to economic growth and job creation in Indonesia, but she rejected the notion that environmental costs are an acceptable trade-off.
“Economic benefits cannot come at the expense of people and the environment,” she said. “Young Indonesians are increasingly questioning development that exploits certain regions while harming local communities.”
For Sarifah, who describes herself as a longtime fan of EXO’s D.O., the campaign is both personal and political. She said many Indonesian fans felt betrayed when they learned that a Korean bank associated with their favorite stars’ endorsements was linked to coal-dependent projects.
“K-pop fans are known for their persistence and solidarity,” she said. “We will continue to act until Hana Bank clearly commits to stopping financial support for coal-reliant industries.”
What began as fandom, activists say, has evolved into a broader demand that global finance align with the climate aspirations of the generation that helped propel K-pop onto the world stage.
M. H. Lee (mhlee@koreabizwire.com)
