Kibo and Korea Environmental Industry & Technology Institute Join Hands to Promote Green Finance
Expansion of Korean-style Green Taxonomy
Support for Green Financing for SMEs and Mid-sized Companies
The Korea Technology Finance Corporation (Kibo) announced on the 26th that it has signed a "Business Agreement for the Expansion of the Korean Green Taxonomy and the Activation of Green Finance" with the Korea Environmental Industry & Technology Institute (KEITI). This agreement was established to support the smooth procurement of green funds for small and medium-sized enterprises (SMEs) and mid-sized companies by expanding the application of the Korean green taxonomy 'K-Taxonomy' and revitalizing the issuance of green asset-backed securities.
Kibo plans to issue approximately 40 billion KRW worth of green asset-backed securities this year based on corporate bonds that comply with the green taxonomy, with announcements and applications starting in March and issuance planned for June. Through this agreement, selected SMEs and mid-sized companies will receive support for external review costs related to the green taxonomy and interest expenses up to 300 million KRW per company.
KEITI will support the interest rate difference within ▲4 percentage points per annum for SMEs and ▲2 percentage points per annum for mid-sized companies on the issuance interest rates of green assets, and Kibo will cooperate to activate the green asset-backed securities issuance project by providing an additional 0.2 percentage point interest rate reduction benefit.
Based on its accumulated technology evaluation capabilities and innovative green finance support infrastructure, Kibo has supplied a cumulative total of 1.3882 trillion KRW in carbon value-based green finance up to last year.
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Kim Jong-ho, Chairman of Kibo, said, "Taking this agreement as an opportunity, Kibo will actively support green finance by creating policy support synergy with KEITI, which is promoting various projects to address the climate crisis and environmental issues." He added, "We will continue to share mutual expertise between the two organizations to expand the Korean green taxonomy and contribute to achieving carbon neutrality in Korea."
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