Agreement Signed at Yeouido Industrial Bank Headquarters on the 23rd... Chairman Lee Dong-geol and Others Attended
Financial Support of 1 Trillion Won by 2025... Joint Research and More to Be Conducted
Ssangyong C&E Donghae Plant's production innovation equipment. [Photo courtesy of Korea Cement Association]
[Asia Economy Reporter Lee Junhyung] The cement industry will receive 1 trillion KRW in funding from KDB Industrial Bank by 2025 to invest in carbon reduction facilities and transition to eco-friendly industries.
The Korea Cement Association announced on the 23rd that it signed an agreement with Industrial Bank at the bank's IR Center headquarters in Yeouido, Seoul, for the "Industry-Finance Cooperation Program to Achieve Carbon Neutrality in the Cement Industry." The signing ceremony was attended by representatives from seven major cement companies, including Sampyo Cement and Hanil Cement, as well as key officials from Industrial Bank, including Chairman Lee Dong-geol.
Through this agreement, the cement industry will be able to receive various financial supports from Industrial Bank for investments in carbon reduction facilities and the transition to eco-friendly industries. According to the association, Industrial Bank also achieved results by preparing financial products such as the carbon spread product, designed to support South Korea's 2050 carbon neutrality goal and the "low-carbon transition in the industrial sector." Additionally, the industry and Industrial Bank will collaborate on various carbon neutrality-related tasks, including joint research and seminar hosting.
With financial support from Industrial Bank, the ESG (Environmental, Social, and Governance) management of the cement industry is expected to gain momentum. Kim Eui-cheol, head of the Technical Support Team at the Korea Cement Association, said, "Investment in the cement industry, which recycles discarded plastics as fuel and raw materials, will expand," adding, "The industry plans to accelerate investment in carbon reduction facilities and strengthen environmental investments to the level of the cement industries in Europe and Japan, contributing to the government's carbon-neutral economic policies."
Meanwhile, to participate in the government's "2050 Carbon Neutrality Vision," the cement industry formed the "Cement Green New Deal Committee" with the Ministry of Trade, Industry and Energy in February. The Cement Green New Deal Committee plans to implement short-term measures such as expanding the use of alternative fuels and other recycled resources, utilizing low-carbon raw materials, and improving process energy efficiency through innovative technology development and production structure transformation.
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