South Korea’s sovereign wealth fund Korea Investment Corp. said Sunday that it was now a member of the One Planet Sovereign Wealth Fund, the world’s largest multilateral working group convened by sovereign wealth funds across the globe to promote cooperation on climate change.

Established Dec. 12, 2017, at the “One Planet Summit” -- a global coalition launched by the French government and the UN to work together on climate change -- the fund exists to develop a framework on climate change response for institutional investors worldwide so that they can better cope with related financial risks.

Korea Investment Corp. joined the working group along with sovereign wealth funds representing nine major economies, including France, Italy, Spain and India, during an annual summit held Friday in Paris, hosted online by French President Emmanuel Macron to counter the coronavirus pandemic, the firm said.

With the addition of the new members, the One Planet Sovereign Wealth Fund’s institutional investors collectively hold more than $30 trillion, the Korea Investment Corp. said.

As a member, the country’s sovereign wealth fund will actively participate in cross-border discussions on climate change issues in the finance sector, while increasing its green investments. The move is aimed at promoting the Moon Jae-in administration’s “Green New Deal” policy, one of the key pillars of the so-called “Korean New Deal,” an economic stimulus package designed to pursue eco-friendly initiatives across industries.

“Financial risks and investment opportunities related to climate change have become the most important factors when making investments.

Starting next year, the KIC will expand its sustainable investment and adopt a more comprehensive management system for preemptive actions against investment risks caused by climate change,” said Choi Hee-nam, chairman and CEO of Korea Investment Corp.

By Choi Jae-hee (cjh@heraldcorp.com)