Kibo Signs Business Agreement with Six Banks to Promote Green Finance Support

Preferential Funding Support for Companies Engaged in Green Economic Activities

On the 1st, the Korea Technology Finance Corporation (Kibo) announced that it signed a "K-Taxonomy Linked Green Finance Support Activation Business Agreement" with six banks including Kookmin, KEB Hana, NH Nonghyup, Shinhan, Woori, and Hana to promote the spread of low-carbon management among small and medium-sized enterprises (SMEs).

This agreement was established to promote low-carbon management and green growth of SMEs by strengthening green finance support through the application of the Korean Green Classification System (K-Taxonomy) by Kibo and the banks.

According to the agreement, Kibo will support a total of KRW 321.4 billion in agreement guarantees using KRW 4.5 billion of guarantee fee support funds from the banks. Kibo plans to drive innovative growth by reducing financial costs for target SMEs by applying preferential conditions such as ▲increasing the guarantee ratio (from 85% to up to 95%) and ▲reducing guarantee fees (up to 0.4 percentage points for 5 years), while the agreement banks will provide ▲guarantee fee support (0.7 percentage points for 2 years).

The supported companies are SMEs engaged in economic activities suitable for the Korean Green Classification System among ▲renewable energy power generation companies, ▲renewable energy industry companies, ▲self-reduction companies, and ▲external reduction companies that have achieved or are expected to achieve greenhouse gas reduction performance.

Lee Jae-pil, Director of Kibo, said, “This agreement is significant in that it increases incentives for companies to participate in green economic activities and lays the foundation for green finance,” adding, “Going forward, Kibo will continue to expand collaboration with the banking sector to activate green finance applying the Korean Green Classification System.”

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