Request for review and penalty (in Korean).

On January 20, 2026, Solutions for Our Climate (SFOC), a climate advocacy group, filed a complaint with the Financial Supervisory Service (FSS) against NICE Investors Service and Korea Ratings, alleging that their credit rating reports for Samcheok Blue Power's unsecured corporate bonds violated Article 335-11(1) of the Capital Markets Act and Article 8-19-9(1) of the Financial Investment Business Regulations by assigning an A+(Stable) rating in a manner inconsistent with their own publicly disclosed rating methodologies.

The complainant argued that the A+ rating was driven by an inflated business risk grade of 'AA' that was not reasonably possible under the agencies' own published methodologies once three critical negative factors were properly weighted: (i) the government's 2040 coal phase-out policy, formally declared at COP30 in November 2025, which would force Samcheok Blue Power into early closure within approximately 15 years — far short of its 30-year design life; (ii) the prolonged delay in the East Coast transmission line construction, which had already been extended to at least June 2027 and had resulted in an actual operating rate of their power plants less than 15% as of mid-2025; and (iii) the risk to retail investors, who had become the primary buyers of the bonds as institutional investors withdrew on ESG grounds. 

On March 26, 2026, the FSS closed the complaint without finding a violation, concluding that while the two parties disagreed on the assumptions and methodology underlying the rating, no explicit violation of the Capital Markets Act was identified, noting that  the agencies acknowledged the coal phase-out policy as a key factor but stated they would reassess business risk only if the forthcoming 12th Basic Plan for Electricity Supply and Demand contained concrete adverse changes for Samcheok Blue Power.

In re Samcheok Blue Power Corporate Bond Credit Rating

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In re Samcheok Blue Power Corporate Bond Credit Rating - petition

Filed

South Korea

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A ban is a legal action that prevents the sale or supply of a product or service, or that recalls a product from the market. Examples are bans on SF6, greenwashing, fossil fuel advertisement or single-use plastics.

A company that is owned wholly or partially by the state, typically operating in key sectors.

A target to reduce the prevalence of a greenhouse gas over a specific time frame

A commitment to balance GHG emissions with removal by a certain point in time, effectively reducing the net emissions to zero

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Actions to reduce emissions in energy generation and supply.

Investment in electricity transmission and distribution systems capable of integrating renewable energy, supporting electrification and strengthening energy system resilience.

Electricity generation from devices driven by the movement of salt water, differences in saltwater temperatures, or salinity gradients.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

In re Samcheok Blue Power Corporate Bond Credit Rating - petition

Target

Policy instrument

Impacted group

Renewable energy

Fossil fuel

Economic sector

Finance