BOK's collateral policy criticized for favoring high-carbon assets
A new study has accused the Bank of Korea (BOK)'s collateral system of favoring high-carbon assets over green bonds, arguing that the framework could effectively provide an "implicit subsidy" to fossil fuel and other carbon-intensive industries. The study, released Monday by London-based nonprofit Positive Money and Seoul-based Institute for Green Transformation (IGT), found that 53 percent of…
A new study has criticized the Bank of Korea's (BOK) collateral system, alleging it favors high-carbon assets over green bonds. According to the analysis by Positive Money and the Institute for Green Transformation, 53% of corporate and public bonds recognized as collateral by the BOK in 2025 originated from fossil fuel and other high-emission sectors, while green bonds made up only about 2%.
The study, which used BOK data sourced from Representative Jung Tae-ho of the ruling Democratic Party of Korea, revealed that green bonds faced an average haircut of 8.7% in 2025.
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- BOK's collateral policy criticized for favoring high-carbon assets koreatimes.co.kr
