Deal aims to ease financial burden on small firms with climate-crisis response technology
Companies meeting carbon-value assessment guarantee requirements eligible for 15 billion won in support
Busan city signed a memorandum of understanding with BNK Financial Group and Korea Technology Finance Corporation on Friday morning at the city hall's international protocol room to support financial costs for climate tech companies in the city. Busan Mayor Jeon Jae-soo, BNK Financial Group Chairman Bin Dae-in and Korea Technology Finance Corporation Chairman Kwon Hyung-taek attended the ceremony and signed the agreement.
The MOU aims to reduce the financial burden on local small and medium-sized enterprises with innovative technologies for responding to the climate crisis, and to support the commercialization of climate tech and the transition to low-carbon processes.
The three parties will build a financial and technical support framework to help companies secure the funding they need, with a total of 15 billion won ($11.2 million) in financial support planned. Eligible companies are SMEs headquartered or primarily operating in Busan that meet Korea Technology Finance Corporation's carbon-value assessment guarantee requirements.
Under the agreement, Busan city will subsidize a portion of loan interest and help companies build greenhouse gas inventories to systematically track and manage their emissions. BNK Financial Group will lower companies' financial costs through preferential-rate loans and guarantee fee support, while Korea Technology Finance Corporation will provide technology assessment fee waivers and preferential guarantees.
Agreement loans will be handled by BNK Busan Bank and Kyongnam Bank, with specific terms applied according to the MOU and each institution's operating standards. The initiative aims to improve companies' access to financing through carbon-value-based technology assessments and to support the commercialization of carbon-reduction technologies and investment in eco-friendly facilities.
"We will work closely with our partner institutions to deliver meaningful financial and technical support, and to back the low-carbon transition of local small and medium-sized enterprises and the growth of the climate tech industry," Mayor Jeon said.
kaf2002@heraldcorp.com
