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Greenpeace posted lasers on a coal power plant in Incheon

Norway’s Government Pension Fund Global (Oil Fund), the world’s largest sovereign wealth fund, named the Korea Electric Power Corporation (KEPCO) as subject to withdrawal of its investment.

Greenpeace announced on Mar. 8 that Oil Fund had listed KEPCO as a target for investment exclusion, citing the fact that coal accounts for over 30% of KEPCO’s total sales.

In Feb. 2016, the Norwegian Parliament enacted investment standards that bar investment in coal thermal power generation and mining businesses that depend on power generating coal for 30% or more of their electric power generation or sales. Targets on the list are subject not only to a ban on future investment but also a recall of existing investments.

Having issued two final lists of companies subject to investment exclusions in April and December of last year, Oil Fund added ten more with its third and latest list, including KEPCO.

“The fund invests in KEPCO shares (around four million) and bonds,” KEPCO explained. “Last year, it sold off around three million shares of its stock, so it currently possesses stocks valued at around 40 billion won (US$34.6 million) by current market prices, as well as some bonds.”

Oil Fund has identified 69 businesses to date as subject to investment exclusion, along with another 13 as targets for examination. Investment exclusion applies not only to the head office but also to any unlisted affiliates. Bonds issues by five KEPCO power generation affiliates, including Korea South-East Power Co., will also apparently be barred from Oil Fund investment.

“The Norwegian government’s decision to pull its investment from KEPCO is significant as a sign that the future for the coal industry is not bright, both in terms of environment issues and economically,” said Son Min-woo, a climate and energy campaigner for Greenpeace.

“Already, over 700 investment agencies around the world have declared that they are pulling their investments in the coal industry,” Son continued. “The coal industry is collapsing, yet South Korea is pursuing the building of eight new coal power generation plants.”

By Kim Jeong-su, senior staff writer and Cho Kye-wan, staff reporter

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