LG Innotek Secures $200 Million from IFC for Sustainable Growth and ESG Excellence
On September 24, 2025, LG Innotek, led by CEO Moon Hyuksoo, announced a significant achievement in acquiring large-scale funding from the International Finance Corporation (IFC). This funding, amounting to $200 million, serves as a testament to the company's exemplary environmental, social, and governance (ESG) management practices. Recognized by a credible global institution renowned for its strict standards, this financing aims to bolster LG Innotek’s production capabilities in Hai Phong, Vietnam.
The Sustainability-Linked Loan (SLL) signed recently symbolizes LG Innotek’s ongoing commitment to sustainable growth. Introduced in 2017 by the IFC, the SLL incentivizes companies to enhance their ESG performance, with borrowers able to enjoy reduced interest rates for meeting specific ESG criteria. This loan is particularly versatile as it permits the use of funds for various purposes, unlike Green Loans, which are restricted solely to ESG-related projects.
By successfully obtaining this funding, LG Innotek positions itself as a trailblazer, being the first Korean company to receive such a sizable investment from the IFC. The eight-year maturity of the loan aligns with the company’s strategic goals for growth and sustainability.
A spokesperson for LG Innotek stated that achieving approval from a reputed international organization demonstrates the company’s leading capabilities in ESG management globally.
LG Innotek is on an ambitious journey towards redefining its operations through sustainability. The company has set bold targets: achieving 100% renewable electricity usage by 2030 and committing to carbon neutrality by 2040. As part of this roadmap, LG Innotek is already ahead of its peers, utilizing 60% renewable energy as of 2024, marking the highest adoption rate among Korean companies in the RE100 initiative.
In terms of operational excellence, LG Innotek’s plants in Paju and Gumi, along with its facilities in Vietnam, reached RE100 status in the previous year, underscoring the company's focus on sustainable manufacturing. This level of dedication has earned LG Innotek recognition as a 'Leadership A' rated company by the Carbon Disclosure Project’s Climate Change Response Assessment for three consecutive years, highlighting its prowess in carbon management.
Carsten Müeller, the IFC’s Regional Industry Director for Asia and the Pacific, expressed enthusiasm for signing the first SLL with LG Innotek and looks forward to their continued partnership in promoting sustainability initiatives.
CFO Jihwan Park communicated his thoughts on the significance of this funding, emphasizing that it reflects the genuine efforts of LG Innotek towards robust ESG management practices. Moving forward, LG Innotek remains committed to leading ESG trends while ensuring they deliver outstanding value to their customers and stakeholders alike.
The financing from the IFC is a notable step for LG Innotek, reinforcing its position as a leader in sustainable innovation within the technology sector. With this backing, the company is set to enhance its production capabilities, support environmental initiatives, and facilitate the growth of its workforce in Vietnam, which is crucial for balancing operational efficiency and ecological responsibility.
In summary, LG Innotek's successful acquisition of $200 million from the IFC marks a significant milestone in the company's sustainability journey. As they expand their production facility in Vietnam, the funds will undoubtedly catalyze growth, reaffirming the company’s commitment to leading the sector in environmental and social governance practices. This financial boost not only supports corporate expansion but also highlights LG Innotek's dedication to creating a sustainable and responsible future for the industry.
The Sustainability-Linked Loan (SLL) signed recently symbolizes LG Innotek’s ongoing commitment to sustainable growth. Introduced in 2017 by the IFC, the SLL incentivizes companies to enhance their ESG performance, with borrowers able to enjoy reduced interest rates for meeting specific ESG criteria. This loan is particularly versatile as it permits the use of funds for various purposes, unlike Green Loans, which are restricted solely to ESG-related projects.
By successfully obtaining this funding, LG Innotek positions itself as a trailblazer, being the first Korean company to receive such a sizable investment from the IFC. The eight-year maturity of the loan aligns with the company’s strategic goals for growth and sustainability.
A spokesperson for LG Innotek stated that achieving approval from a reputed international organization demonstrates the company’s leading capabilities in ESG management globally.
LG Innotek is on an ambitious journey towards redefining its operations through sustainability. The company has set bold targets: achieving 100% renewable electricity usage by 2030 and committing to carbon neutrality by 2040. As part of this roadmap, LG Innotek is already ahead of its peers, utilizing 60% renewable energy as of 2024, marking the highest adoption rate among Korean companies in the RE100 initiative.
In terms of operational excellence, LG Innotek’s plants in Paju and Gumi, along with its facilities in Vietnam, reached RE100 status in the previous year, underscoring the company's focus on sustainable manufacturing. This level of dedication has earned LG Innotek recognition as a 'Leadership A' rated company by the Carbon Disclosure Project’s Climate Change Response Assessment for three consecutive years, highlighting its prowess in carbon management.
Carsten Müeller, the IFC’s Regional Industry Director for Asia and the Pacific, expressed enthusiasm for signing the first SLL with LG Innotek and looks forward to their continued partnership in promoting sustainability initiatives.
CFO Jihwan Park communicated his thoughts on the significance of this funding, emphasizing that it reflects the genuine efforts of LG Innotek towards robust ESG management practices. Moving forward, LG Innotek remains committed to leading ESG trends while ensuring they deliver outstanding value to their customers and stakeholders alike.
The financing from the IFC is a notable step for LG Innotek, reinforcing its position as a leader in sustainable innovation within the technology sector. With this backing, the company is set to enhance its production capabilities, support environmental initiatives, and facilitate the growth of its workforce in Vietnam, which is crucial for balancing operational efficiency and ecological responsibility.
In summary, LG Innotek's successful acquisition of $200 million from the IFC marks a significant milestone in the company's sustainability journey. As they expand their production facility in Vietnam, the funds will undoubtedly catalyze growth, reaffirming the company’s commitment to leading the sector in environmental and social governance practices. This financial boost not only supports corporate expansion but also highlights LG Innotek's dedication to creating a sustainable and responsible future for the industry.
Topics Business Technology）
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