Korea Ratings

ESG Assessment
Subject of Assessment and Grades			Grade Definitions
Green Finance	Social Finance	Sustainable Finance	Grade Definitions
G1	S1	ST1	A high portion of the proceeds are used for eligible project, process for project evaluation and selection, management of proceeds and reporting level are very strong.
G2	S2	ST2	A high portion of the proceeds are used for eligible project, process for project evaluation and selection, management of proceeds and reporting level are strong.
G3	S3	ST3	A higher-than-moderate portion of the proceeds are used for eligible project, process for project evaluation and selection, management of proceeds and reporting level are moderate.
G4	S4	ST4	A moderate portion of the proceeds are used for eligible project, process for project evaluation and selection, management of proceeds and reporting level are insufficient.
G5	S5	ST5	A low portion of the proceeds are used for eligible project, process for project evaluation and selection, management of proceeds and reporting level are poor.

Sustainability-Linked Finance Assessment
Grades	Grade Definitions
Excellent	KPIs are critical to improve sustainability of the issuer and the level of ambition of the SPTs is very high.
Good	KPIs are important to improve sustainability of the issuer and the level of ambition of the SPTs is high.
Fair	KPIs contribute to improvement of sustainability of the issuer and the level of ambition of the SPTs is fair.

Climate Transition Finance Assessment
Grades	Grade Definitions
Excellent	The issuer’s climate transition strategy has a very high level of appropriateness, systematicity, transparency and environmental materiality in business activities
Good	The issuer’s climate transition strategy has a high level of appropriateness, systematicity, transparency and environmental materiality in business activities
Fair	The issuer’s climate transition strategy has a fair level of appropriateness, systematicity, transparency and environmental materiality in business activities

ESG