Korea Development Bank "Promoting a Major Shift to a Policy Finance Institution Leading Green Finance"

Response to Government's Long-term Low-Carbon Development Strategy
Incorporating Decarbonization of Key Industries, Promotion of Green New Industries, and Just Transition into Credit Policies

[Asia Economy Reporter Park Sun-mi] On the 26th, the Korea Development Bank (KDB), which has played various roles in response to changes in the economy and industry, announced that it is promoting a major transformation into a policy finance institution leading green finance.

To fulfill its role as a policy finance institution leading green finance, KDB expanded and reorganized its existing Policy Planning Division into the Policy and Green Planning Division earlier this month, and established the ESG (Environmental, Social, and Governance) and New Deal Planning Department to serve as the control tower for green finance, thereby restructuring its organization.

Over the next five years, KDB plans to launch the 'Korea Great Transition New Deal Program' with a scale of approximately 25 trillion KRW, aiming to provide sufficient and prompt green finance support through the creation and operation of a 20 trillion KRW policy-type New Deal fund and the development of financial products reflecting the government's Long-term Low Carbon Development Strategy (LEDs). The bank intends to set climate change response as one axis of its long-term development direction and link it with its core roles of fostering innovative companies and strengthening industrial competitiveness.

In particular, in response to the government's Long-term Low Carbon Development Strategy, KDB plans to incorporate and intensively support the decarbonization of key industries, the cultivation of green new industries, and just transition (support for stranded industries and companies vulnerable to low-carbon transition) into its credit policies.

Kim Bok-gyu, Head of the Policy and Green Planning Division at KDB, stated, "Green and climate finance are intertwined with the innovation of the economic and industrial structure and the country's growth strategy. Based on the accumulated expertise and know-how, KDB will further strengthen its role as a leading institution in green finance to support the green transition of our economy."