Housing Finance Corporation Provides Financial Support to SMEs with ESG Management

Korea Housing Finance Corporation and IBK Industrial Bank of Korea held a "Business Agreement Ceremony to Promote ESG Management Support for Small and Medium Enterprises," after which Jo Jeom-ho, Director of the Housing Finance Corporation (left), and Park Ju-yong, Vice President of IBK Industrial Bank of Korea (right), are posing for a commemorative photo.

[Asia Economy Yeongnam Reporting Headquarters, Trainee Reporter Hwang Du-yeol] Korea Housing Finance Corporation (HF) is providing financial support to outstanding small and medium-sized enterprises (SMEs) to promote ESG management.

ESG management stands for Environment, Social responsibility, and Governance.

Korea Housing Finance Corporation signed a 'Financial Support Agreement for Activating ESG Management Support for SMEs' with IBK Industrial Bank of Korea.

According to the agreement, HF and IBK Industrial Bank of Korea will establish a fund worth 15 billion KRW to support SMEs nationwide, including ▲eco-friendly companies ▲companies fulfilling social responsibilities ▲companies with excellent governance, allowing them to access loans at low interest rates.

The loan limit is 500 million KRW per company, and an interest rate at least 1.30 percentage points lower than the rate calculated for each company will be applied.

An HF official said, “We will play a leading role in building an ESG ecosystem by supporting the introduction and practice of ESG management in SMEs.”

HF has established an HF-type ‘ESG Management Promotion Plan’ to implement government policies. The policy aims for the Korean New Deal and the transition to an eco-friendly and inclusive economy.

HF is deriving 100 detailed implementation tasks based on 20 key tasks for policy implementation.