Starting in July, 14 banks will provide loans of up to 35.7 billion KRW, with an expectation to induce 393 billion KRW in private investment.
The Ministry of Trade, Industry and Energy announced on the 7th that it would provide loans totaling 152.1 billion KRW to 14 companies selected for the carbon-neutral transition program. These companies are in high-carbon sectors such as cement, semiconductors, and hydrogen, aimed at encouraging voluntary private investment for carbon reduction.
The beneficiary companies include 10 small and medium enterprises, 1 mid-sized company, and 3 large corporations. They can receive loans of up to 35.7 billion KRW from 14 major banks starting from July. The loan interest rate is 1.3%, and the support covers 50-100% of the total investment.
The targeted companies include Keyoung Tech, Kumkang CNT, DOW, Dats Energy, Daedong Industrial, Beomjin Energy Construction, Buyeo Bio, Anis, Eco Innovation, Eco Pro HN, Corning Precision Materials, Hi-Vac, Korea R&D, and Halla Cement.
Despite uncertain global and domestic economic conditions, these companies plan to invest a total of 393 billion KRW in various carbon-neutral fields focused on industries like cement, semiconductors, hydrogen, and CCUS (carbon capture, utilization, and storage).
This loan program was introduced in 2022 and has supported 84 cases with a total of 654 billion KRW so far. This has led to around 2.7 trillion KRW in new private investments targeting carbon neutrality, with an expected annual greenhouse gas reduction of 10.74 million tons.
Lee Seung-ryul, head of the Ministry’s Industrial Policy Bureau, noted, “Even in difficult times like the second IMF crisis, corporate investment in carbon neutrality is a key element for enhancing industrial competitiveness and sustainable growth.” He added, “The government will expand support for the green transition in industries through comprehensive measures beyond loans, such as R&D and infrastructure development.”