Korea Southern Power plans potential Climate Transition Bond

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Korea Southern Power (KOSOPW), one of six generation companies wholly owned by Korea Electric Power Corporation (KORELE), is holding investor meetings in Asia ahead of a potential USD-denominated Climate Transition Bond. The potential deal would follow recent Climate Transition Bond issuance from sister companies Korea East-West Power (KOEWPW) and Korea Midland Power (KOMIPO), and draws on KOSOPW's new Green and Climate Transition Finance Framework, which allows labelled financing for CCGT projects that replace coal capacity.

KOSOPW's framework identifies four CCGT projects totalling 3,024MW, replacing 3,000MW of Hadong coal capacity between 2027 and 2031, around half of the company's current coal fleet and a quarter of its total domestic capacity. K-Taxonomy eligibility thresholds imply generation-stage emissions cuts of around 57-69% versus unabated coal, though KOSOPW does not disclose project-level emissions estimates, and actual lifecycle savings would depend on project performance and upstream LNG emissions, including methane leakage.

Beyond the coal-to-gas swap, the pathway is less clear. KOSOPW targets 100% low-emissions fuel firing by 2050 but, unlike peers KOMIPO and KOEWPW, discloses no interim hydrogen milestones, CCGT retirement date, or how the identified projects contribute to its 72% GHG reduction target.