Credit Union to Help Establish ‘Sunlight Income Villages’ ... Loans for Facility Costs and Interest Support

[Financial News] The National Credit Union Federation of Korea will provide financial support to ‘Sunlight Income Villages,’ where residents produce renewable energy together and share the revenue from power generation. It will offer loans covering up to 85% of the funds needed to build power-generation facilities.
According to the financial sector on the 13th, the National Credit Union Federation of Korea signed an agreement the previous day at the Koreana Hotel in Jung-gu, Seoul, with the Korea Energy Agency, Nonghyup, Suhyup and the Saemaul Geumgo Federation to implement interest subsidies under the Renewable Energy Financial Support Program.
The agreement focuses on helping resident-led solar power projects secure financing and supporting villages in building and operating power-generation facilities on a stable basis.
Under the agreement, the National Credit Union Federation of Korea will provide loans covering up to 85% of the facility costs needed to build solar power-generation facilities for Sunlight Income Villages that have received a recommendation letter from the Korea Energy Agency.
The loans will carry a variable interest rate calculated based on the lending rates of non-bank financial institutions published in the Bank of Korea’s Economic Statistics System. Interest subsidies from the Korea Energy Agency can also reduce the burden of loan interest.
Ko Young-cheol, president of the National Credit Union Federation of Korea, said, “This agreement is significant because the Credit Union is expanding its financial support in the energy sector, one of the four leading models set out in the government’s Comprehensive Plan for the Development of the Social and Solidarity Economy. We will continue to fulfill our role as a financial cooperative so that local residents can participate as key players in renewable energy projects and share in their benefits.”
Meanwhile, the National Credit Union Federation of Korea is working to promote the social and solidarity economy rooted in local communities. Last month, it held the ‘Credit Union Social and Solidarity Finance Specialist Training Program.’ The program was designed to develop professionals in social and solidarity finance and strengthen their practical skills in the field. The federation plans to expand its financial support into a range of areas, including social housing and care.
[email protected] Lee Hyun-jung Reporter