The Korea Technology Finance Corporation (hereinafter referred to as the “KIBO”) announced that it signed a “Green Finance Support Business Agreement” with Gwangju Bank at the Gwangju Bank headquarters on Monday the 26th.
This agreement was prepared to strengthen financial support for companies that reduce greenhouse gases and engage in green economic activities by establishing a close cooperative system between the two organizations, and to promote carbon neutrality and green credit activation through the spread of low-carbon management by companies.
According to the agreement, Kibo will support a total of KRW 8.3 billion in guarantee fee support agreement guarantees with KRW 100 million from Gwangju Bank as a source of funds, and will give preferential treatment to carbon value assessment guarantees and taxonomy assessment guarantees for small and medium-sized enterprises that have carbon reduction performance or engage in economic activities suitable for the Korean green classification system.
In addition, Kibo will apply preferential measures such as ▲increasing the guarantee ratio (from 85% to up to 95%) and ▲reducing the guarantee fee (up to 0.4%p↓), and Gwangju Bank will support the guarantee fee (0.5-0.7%p, for 2 years) to ease the financial cost burden on companies.
Through this agreement, the two organizations plan to expand the financial infrastructure concentrated in the metropolitan area to the regions and actively foster regional green technology and environmental industries by reducing financial costs for green technology companies and linking them with customized support programs.
Park Joo-sun, Executive Director of Kibo, said, “This agreement is significant in that it increases the incentive for local SMEs to participate in green economy activities and lays the foundation for activating green credit,” adding, “Kibo will continue to expand collaboration with related organizations to link professional capabilities with green finance, and fulfill its role as a policy finance institution leading the transition to a low-carbon economy.”
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