KICOX to Provide 297.3 Billion Won in Support for Carbon Neutral Transition Over Three Years

16 Projects Selected for the Second Half of the Year
in the Carbon Neutral Transition Leading Project Loan Program

The Korea Industrial Complex Corporation announced on October 31 that, following the results of the second half announcement for the "2025 Carbon Neutrality Transition Leading Project Loan Support Program," it has selected 16 projects and will provide a total of 297.3 billion won in loans over the next three years.

This program targets long-term and large-scale facility investment and research and development (R&D) projects that can significantly reduce greenhouse gas emissions. It aims to promote voluntary carbon neutrality investments in the industrial sector by providing long-term, low-interest loans. The selected projects include a large number of companies from key industries such as steel, petrochemicals, and shipbuilding, and are evenly distributed by company size: 10 small enterprises (63%), 1 medium-sized enterprise (6%), and 5 large enterprises (31%).

Daegu Dong-gu Korea Industrial Complex Corporation Headquarters exterior. Korea Industrial Complex Corporation

In particular, it is expected to provide a foundation for companies in the steel and petrochemical sectors, which are facing difficulties due to the global economic slowdown and declining demand, to simultaneously pursue carbon emission reduction and enhanced competitiveness. The newly introduced "Net Zero Challenge X" bonus point system in the second half of this year has also led to the selection of a startup with carbon dioxide capture technology, indicating the potential for the spread of innovative carbon-neutral technologies.

The selected companies will be eligible for loan support at an annual interest rate of 1.3% (variable for one year) over a three-year period, with a maximum repayment period of 10 years (three years of grace and seven years of principal installment payments). The loan coverage by company size is up to 100% for small enterprises, 90% for medium-sized enterprises, and 50% for large enterprises.

The Korea Industrial Complex Corporation expects that this loan support will serve as a catalyst, providing 297.9 billion won in loans over three years and inducing approximately 963 billion won in private investment. To this end, the corporation plans to strengthen its collaboration with commercial banks and provide follow-up support to ensure smooth implementation of corporate investments.

Lee Sanghoon, President of the Korea Industrial Complex Corporation, stated, "Technological innovation and expanded investment for the carbon neutrality transition are key to strengthening industrial competitiveness and achieving sustainable growth. We will actively support public policy finance to result in tangible greenhouse gas reductions at industrial sites and to encourage the spread of voluntary carbon-neutral investments by the private sector."

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