Kibo Supports SME ESG Management for Building Energy Reduction with Shinhan Bank

Agreement on Preferential Guarantee Support Worth 33.3 Billion KRW
Contribution to Greenhouse Gas Reduction

The Korea Technology Finance Corporation (Chairman Kim Jong-ho, hereinafter Kibo) announced on the 26th that it has signed a 'Financial Support Agreement for Building Energy Reduction to Support ESG Management of Small and Medium Enterprises' with Shinhan Bank (President Jeong Sang-hyeok).

This agreement was established to contribute to the government's greenhouse gas reduction goals by building a customized collaboration system between the two institutions to promote voluntary energy saving and the spread of ESG (Environmental, Social, and Governance) management among small and medium enterprises.

According to the agreement, Kibo will preferentially support guarantee loans up to 33.3 billion KRW using Shinhan Bank's special contribution fund of 500 million KRW and guarantee fee support fund of 500 million KRW. Additionally, Kibo will apply preferential terms such as ▲increasing the guarantee ratio (from 85% to 100% for 3 years) ▲reducing guarantee fees (by 0.2 percentage points for 3 years), and Shinhan Bank will provide ▲guarantee fee support (reduction of 0.5 percentage points for 3 years) ▲interest rate benefits (up to 1.0 percentage point reduction for up to 3 years), thereby reducing financial costs for SMEs reducing building energy consumption and promoting the spread of ESG management.

In particular, Shinhan Bank plans to encourage voluntary energy saving by SMEs by differentiating interest rate benefits according to the rate of energy reduction at the business site. The support targets are companies that have submitted a building energy reduction consent form for their business sites, including ▲sustainable management (ESG) companies ▲innovation growth sectors ▲companies reducing building energy in areas related to strengthening SME competitiveness, which are linked to government national tasks.

Kim Jong-ho, Chairman of Kibo, said, "This agreement is a major collaboration case between Kibo and the bank on ESG management and greenhouse gas reduction, which are key issues in policy finance, and we will continue to cooperate with related organizations in the future." He added, "According to the agreement, Kibo will actively discover and support companies reducing building energy consumption, striving to spread the government's carbon neutrality policy throughout all SMEs."

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