Seoul: The Korea Exchange (KRX), South Korea's primary bourse operator, announced on Friday its decision to extend the fee exemptions on Korean green bonds for an additional year. This extension is part of a proposed amendment to the enforcement rules of the Korea Composite Stock Price Index (KOSPI) market listing regulations.

According to Yonhap News Agency, the proposed changes will allow investors in Korean green bonds to continue enjoying exemptions from listing and annual fees until December 31, 2026. However, the fee exemption will not extend to other social impact bonds, such as Socially Responsible Investment (SRI) bonds, as clarified by the KRX.

Korean green bonds are debt securities designed to fund eco-friendly projects within South Korea. They operate under the K-taxonomy, a framework that outlines green economic activities, developed collaboratively by the environment ministry and the Financial Services Commission. The KRX initially began exempting fees on green bonds and SRI bonds in June 2020, as part of its initiative to boost investments in ESG (environmental, social, and governance) sectors.