LG Innotek has secured a US$200 million loan from the International Finance Corporation (IFC), the World Bank’s investment arm, to expand its manufacturing facility in Haiphong, Vietnam.

This eight-year, sustainability-linked loan is the first of its kind for a South Korean company from the IFC and is intended to encourage stronger environmental, social, and governance (ESG) practices.

LG Innotek, an electronic component maker, applied for the funding in 2024 and received approval after a review process.

The loan program offers lower interest rates to companies that meet specified ESG targets.

In 2024, LG Innotek converted nearly 60% of its global electricity consumption to renewable sources, with its plants in Vietnam and South Korea meeting the RE100 renewable energy target that year.

🔗 Source: The Korea Herald

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