Agreement expands green finance support for small and mid-sized firms cutting greenhouse gas emissions, using carbon reduction and K-Taxonomy assessment reports for policy loans

An exterior view of NH NongHyup Bank. [NH NongHyup Bank]
An exterior view of NH NongHyup Bank. [NH NongHyup Bank]

NH NongHyup Bank said Thursday it signed a memorandum of understanding with Korea Technology Finance Corp. to provide interest-subsidy policy loans backed by green finance guarantees for companies developing and supporting green businesses.

The agreement was designed to support the government's carbon neutrality goals and help companies transition to low-carbon operations. It aims in particular to ease the cost burden of verifying carbon reductions when companies introduce emissions-cutting equipment, and to improve access to policy finance for small and medium-sized enterprises that have struggled to use such programs.

Under the MOU, NH NongHyup Bank will receive from Korea Technology Finance Corp. guarantee certificates based on carbon value assessments and evaluations under the Korean Green Taxonomy, known as K-Taxonomy, along with greenhouse gas reduction assessment reports and K-Taxonomy evaluation reports. K-Taxonomy is a guideline that sets clear principles and criteria for environmentally sustainable economic activities, helping prevent greenwashing and facilitating the flow of private capital into eco-friendly industries.

NH NongHyup Bank plans to use those reports to provide interest-subsidy policy loans under the green finance program.

Eligible borrowers are small and medium-sized enterprises pursuing greenhouse gas reduction projects that have demonstrated a qualifying level of emissions cuts and confirmed compliance with K-Taxonomy standards.

Qualifying companies can receive preferential financing for facility funds used to introduce carbon-reduction equipment and related infrastructure.

Eom Eul-yong, deputy president of NH NongHyup Bank's corporate banking division, said the agreement would allow companies contributing to green growth and carbon neutrality to access financial support more smoothly. "We will continue to work closely with Korea Technology Finance Corp. to develop a range of financial products and services that actively support the growth of small and medium-sized enterprises and the spread of ESG management," he added.


won@heraldcorp.com