LG Innotek secures IFC funding to bolster sustainable growth
LG Innotek secures IFC funding to bolster sustainable growth
LG Innotek has secured major financing from the International Finance Corporation (IFC), marking a strong endorsement of the company’s environmental, social, and governance (ESG) management practices.
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The announcement, made on September 24, highlights IFC’s recognition of LG Innotek’s ESG achievements. As part of the World Bank Group, IFC provides funding to private-sector firms that demonstrate sustainable practices, aiming to foster responsible growth and investment worldwide.
LG Innotek has become the first South Korean company to secure $200 million through the IFC's Sustainability-Linked Loan (SLL), which it applied for last year to fund the expansion of its manufacturing site in Haiphong, Vietnam. The loan carries an eight-year maturity.
The SLL, introduced in 2017, is a global financing tool designed to strengthen ESG management. Companies that deliver strong sustainability and compliance outcomes are rewarded with lower interest rates. Unlike Green Loans, which restrict funds to environmental projects, the SLL allows more flexible use but requires strict oversight, with firms obliged to meet agreed ESG targets throughout the loan term.
An LG Innotek representative said the successful approval “once again demonstrates the company’s ability to meet rigorous international standards and its commitment to sustainable growth.”
The company has set clear environmental goals, pledging to transition entirely to renewable electricity (RE100) by 2030 and reach carbon neutrality by 2040. By 2024, it had already converted 60 per cent of its electricity consumption to renewable sources – the highest rate among South Korean RE100 participants outside the Korea Water Resources Corporation. Its plants in Paju and Gumi, as well as its facilities in Vietnam, achieved full RE100 status last year.
These commitments have earned LG Innotek a 'Leadership A' rating in the 2024 Carbon Disclosure Project’s Climate Change Response Assessment and recognition as Leading Carbon Management Company for three consecutive years.
“We are delighted to sign the first SLL with LG Innotek. We look forward to continuing our work to promote sustainability,” said Carsten Müeller, IFC’s regional industry director for Manufacturing, Agribusiness, and Services in Asia-Pacific.
LG Innotek CFO Jihwan Park said, “This IFC funding is a meaningful financial outcome of the company’s authentic ESG management activities. Going forward, we will continue to lead in this area while delivering exceptional value to our customers.”
- 18:38 24/09/2025
