Hanwha joins with Samsung to drop Aussie coal investments
Posted : 2020-08-03 16:25
Updated : 2020-08-03 19:25
A young student reads a letter to Samsung Electronics Vice Chairman Lee Jae-yong in a protest by a regional unit of the environmental group Climate Strike against Samsung affiliates' coal investments, held in front of a Samsung Electronics Service Center in Changwon, South Gyeongsang Province, Wednesday. / Courtesy of Climate Strike's South Gyeongsang Province chapter
By Kim Bo-eun
Amid ongoing protests by environmentalists, Hanwha Investment & Securities and Korea Investment & Securities joined with Samsung Securities to give up additional coal investments in Australia.
Regarding the specifics of the decision, Hanwha and Korea Investment officials said Monday the cancellation of the scheduled investments was because of evidence that coal-related businesses lack substantial growth potential.
Hanwha and Korea Investment purchased 250 billion won in debt in Abbot Point Terminal. The two local brokerages were known to have discussed refinancing with India's Adani Group worth 210 billion won, sources familiar with the issue said.
The latest updates regarding the terminal investment came as Samsung Securities is facing a possible boycott of its electronics products by local environmentalists over its affiliates' coal investments, after civic movements in Australia led its brokerage unit to vow not to make any more of these.
A regional unit of Climate Strike staged a protest recently in front of a Samsung Electronics service center in the city of Changwon, South Gyeongsang Province. Members expressed plans to boycott the products of the electronics giant if other Samsung affiliates do not suspend coal-related investments.
Samsung Securities invested in the construction of a terminal through which coal from the Carmichael Mine is to be shipped overseas. The coal mine in Queensland, under development by Indian conglomerate Adani, is the one of the world's largest mine development projects.
Environmental organizations in Australia have fiercely opposed the project, citing the level of carbon emissions that coal production at the mine would generate, as well as additional harm to the surrounding ecosystem.
Earlier, Samsung Securities purchased the $120 million-in-debt Abbot Point Terminal with three other Korean brokerages, but stated earlier this month it would halt additional investments after a civic group vowed to boycott Samsung Electronics products.
The photo shows a poster with the names of Samsung's insurance, construction and trade units. It reads: "Samsung, suspend coal investments." / Courtesy of Climate Strike's South Gyeongsang Province chapter
Samsung's brokerage unit is not involved in other coal-related investments, aside from the Adani project. Samsung Securities stated it is in the process of setting up investment guidelines according to ESG (environment, social and governance) standards. An official explained that the group does not have a control tower that sets up comprehensive guidelines for management and investment, and that each arm is responsible for its own business.
A number of Samsung's other affiliates are currently involved in coal investments. Samsung C&T, the construction and trade unit of the group, is involved in the construction of a 3.78 trillion won coal-fired power plant in Gangneung, Gangwon Province. Samsung Life Insurance and Samsung Fire & Marine Insurance have financed 300 billion won and 250 billion won, respectively, in a project undertaken by POSCO Energy to build a coal-fired power plant in Samcheok, Gangwon Province. Both plants are under construction.
Samsung C&T has also undertaken a project to build a 1,200MW thermal power plant in Vung Ang, Ha Tinh, Vietnam. Construction has not yet begun on this plant.
Regarding the calls, a Samsung C&T official said "We do not have any comment to make on the issue at the moment."
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