Industrial Bank Expands Interest Rate Benefits for Carbon Reduction Companies... Up to 2.6%

[Asia Economy Reporter Bu Aeri] On the 6th, Korea Development Bank (KDB) announced that it has secured government subsidies for the 'KDB Carbon Spread (Carbon Reduction Fund)' and will double the level of preferential interest rates.

The KDB Carbon Spread is a corporate loan product that provides funds for facility investments capable of reducing greenhouse gases and energy consumption compared to existing levels.

The Ministry of Environment decided to subsidize half of the preferential interest rate for the product through the newly established 'Green Policy Finance Activation Interest Subsidy Project' this year.

Accordingly, KDB will raise the maximum preferential interest rate to 2.6% starting this month.

In addition, the scope of interest rate benefits will be expanded not only for small and medium-sized enterprises (SMEs) and mid-sized companies with limited capacity for greenhouse gas reduction investments but also for facility investments that comply with the Korean-style Green Taxonomy (K-Taxonomy).

Meanwhile, the KDB Carbon Spread, operated under the categories of 'Carbon Reduction Fund' and 'Low Carbon Ecosystem Fund,' has supported a total of 1.9 trillion KRW to 30 companies by the end of last year since its launch in April.

KDB stated that, based on pre-verification by external specialized agencies, the workplaces that received carbon reduction funds are expected to achieve an annual greenhouse gas reduction effect of approximately 1.14 million tons.

This content was produced with the assistance of AI translation services.