Government Provides Financial Support to Carbon Neutral Investment Companies... 150 Billion Won Invested This Year
Published 17 Apr.2022 11:00(KST)
Ministry of Industry Provides Loans to Decarbonization Investment Companies... Up to 50 Billion KRW per Business Site
Loan Scale This Year 150 Billion KRW... "Will Increase to 1.7 Trillion KRW Over 5 Years"
[Asia Economy Sejong=Reporter Lee Junhyung] The government is set to actively provide loan support to companies investing in decarbonization.
The Ministry of Trade, Industry and Energy announced on the 17th that it will open the '2022 Carbon Neutral Transition Leading Project Loan Support Program.' Through this program, the ministry will offer loans for facilities or research and development (R&D) investment projects that have a significant effect on reducing greenhouse gas emissions. Support will be available not only to small and medium-sized enterprises (SMEs) and mid-sized companies but also to large corporations.
This year, the loan scale is 150 billion KRW. The ministry plans to provide loans up to 50 billion KRW per business site. The loan period can be up to 10 years, with repayment in installments allowed for up to 7 years. The loan interest rate starts as low as 1.3%.
![Loan support conditions for the '2022 Carbon Neutral Transition Leading Project Loan Support Program'. <br>[Photo by Ministry of Trade, Industry and Energy]](http://www.asiae.co.kr/news/img_view.htm?img=2022041614581531432_1650088695.png)
Loan support conditions for the '2022 Carbon Neutral Transition Leading Project Loan Support Program'.
[Photo by Ministry of Trade, Industry and Energy]
The ministry has designated the Korea Industrial Complex Corporation as the dedicated agency for the loan program. Thirteen nationwide commercial banks, including Shinhan Bank, Woori Bank, and KB Kookmin Bank, have been appointed as loan handling banks. The ministry plans to develop a guarantee cooperation program with the Korea Credit Guarantee Fund to expand guarantee limits and reduce guarantee fees.
The ministry aims to increase the loan support scale to 1.7 trillion KRW over the next five years to reduce the burden of decarbonization investments for domestic companies. Companies wishing to apply for loan support can do so through the Korea Industrial Complex Corporation’s website by the 31st of next month. Detailed information can be found in the ministry’s official announcement and related documents.
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