LG Innotek secures IFC funding to bolster sustainable growth

LG Innotek has become the first South Korean company to secure $200 million through the IFC’s Sustainability-Linked Loan (SLL), which it applied for last year to fund the expansion of its manufacturing site in Haiphong, Vietnam. The loan carries an eight-year maturity.

The SLL, introduced in 2017, is a global financing tool designed to strengthen ESG management. Companies that deliver strong sustainability and compliance outcomes are rewarded with lower interest rates. Unlike Green Loans, which restrict funds to environmental projects, the SLL allows more flexible use but requires strict oversight, with firms obliged to meet agreed ESG targets throughout the loan term.

An LG Innotek representative said the successful approval “once again demonstrates the company’s ability to meet rigorous international standards and its commitment to sustainable growth.”

The company has set clear environmental goals, pledging to transition entirely to renewable electricity (RE100) by 2030 and reach carbon neutrality by 2040. By 2024, it had already converted 60 per cent of its electricity consumption to renewable sources – the highest rate among South Korean RE100 participants outside the Korea Water Resources Corporation. Its plants in Paju and Gumi, as well as its facilities in Vietnam, achieved full RE100 status last year.

These commitments have earned LG Innotek a ‘Leadership A’ rating in the 2024 Carbon Disclosure Project’s Climate Change Response Assessment and recognition as Leading Carbon Management Company for three consecutive years.

“We are delighted to sign the first SLL with LG Innotek. We look forward to continuing our work to promote sustainability,” said Carsten Müeller, IFC’s regional industry director for Manufacturing, Agribusiness, and Services in Asia-Pacific.

LG Innotek CFO Jihwan Park said, “This IFC funding is a meaningful financial outcome of the company’s authentic ESG management activities. Going forward, we will continue to lead in this area while delivering exceptional value to our customers.”

IFC considers $200m loan for LG Innotek Vietnam The International Finance Corporation (IFC), a member of the World Bank Group, is considering a loan of up to $200 million to LG Innotek Vietnam Haiphong Co., Ltd.

LG Innotek Enters the Market with Automotive AP Modules, Boosting Its Semiconductor Component Business LG Innotek announced on February 25 that it will launch a new electronic component for vehicles, the Automotive Application Processor Module(AP Module), targeting automotive semiconductor component markets worldwide.

LG units in Haiphong seek $100 million support package LG Group’s major subsidiaries in Haiphong are seeking significant support to boost training, research, and high-tech production.