ESG Fund Performance in an Emerging Market: The Case of Korea Before and After Covid-19

Hyejin Park, Jiyoon Lee and Dojoon Park
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Hyejin Park: Hanyang University ERICA Campus, Republic of Korea
Jiyoon Lee: Yonsei University, Republic of Korea
Dojoon Park: Kongju National University, Republic of Korea

Journal of Economic Development, 2025, vol. 50, issue 2, 65-96

Abstract: This study examines the performance of environmental, social, and governance (ESG) funds in emerging markets, using Korean data. We found that ESG fund performance shifted significantly following the onset of the pandemic. While ESG funds did not outperform their matched conventional counterparts in the pre-pandemic years, they significantly outperformed conventional funds during the post-pandemic years. However, we find minimal differences in fund holding characteristics between ESG and conventional funds, which raises concerns about the possibility of ESG washing. This study underscores the differences between the performance patterns of ESG funds in emerging markets and those observed in more developed markets.

Keywords: ESG; SRI; Sustainability; COVID-19; Mutual Funds (search for similar items in EconPapers)
JEL-codes: G11 G15 G23 Q56 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:ris:jecdev:0115

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