Kibo-Gwangju Bank, First Local Bank to Support 'Green Finance' Agreement... 'K-Taxonomy Companies Preferred'

[Financial News] Korea Technology Finance Corporation announced on the 27th that it signed a 'Green Finance Support Business Agreement' with Gwangju Bank on the 26th.
This agreement was prepared to promote the implementation of carbon neutrality and the activation of green loans through the spread of low-carbon management among companies. Kibo plans to raise the guarantee ratio to a maximum of 95% for small and medium-sized enterprises that have achieved carbon reduction results or meet the Korean green classification system, and also reduce the guarantee fee by up to 0.4%p. Gwangju Bank will apply a preferential guarantee fee rate of 0.5~0.7% (for 2 years) to these companies.
Through this agreement, Gwangju Bank contributed 100 million won in guarantee support funds to Kibo. Kibo plans to promote a total of 8.3 billion won in guarantee support using this fund. Carbon value evaluation guarantees and taxonomy evaluation guarantees will be preferentially applied to technology companies with proven carbon reduction effects.
Kibo plans to expand the financial infrastructure centered on the metropolitan area to regions and strengthen customized financial support for green technology companies. It also plans to actively foster region-based environmental industries in the future.
Park Joo-sun, Executive Director of Kibo, said, “This agreement is significant in that it lays the foundation for the activation of green loans,” and “We will fulfill our role as a policy financial institution leading the transition to a low-carbon economy.”

jimnn@fnnews.com Shin Ji-min Reporter