New Policy "Total 500 Billion KRW Guarantee Support for Companies Reducing Greenhouse Gases"

Shinbo Launches 'Green Just Transition Guarantee'
Supports Up to 10 Billion KRW for SMEs and 20 Billion KRW for Mid-sized Companies

[Asia Economy Reporter Minwoo Lee] The Korea Credit Guarantee Fund (KODIT) is launching a guarantee product that provides up to 500 billion KRW in support for small and medium-sized enterprises (SMEs) and mid-sized companies engaged in eco-friendly management, such as greenhouse gas reduction.

KODIT announced on the 4th that it will implement the "Green Process Transition Guarantee." With a total scale of 500 billion KRW, the plan is to enhance convenience for companies using guarantees through benefits such as increased guarantee limits, reduced guarantee fees (up to 0.5 percentage points), and higher guarantee ratios (95?100%).

The support targets companies that ▲introduce greenhouse gas reduction facilities or improve processes ▲possess products or technologies in eco-friendly fields ▲introduce new and renewable energy power generation facilities or eco-friendly ships. Depending on company size, support is provided up to 10 billion KRW for SMEs and 20 billion KRW for mid-sized companies.

A KODIT official stated, "The 'Green Process Transition Guarantee' will be a great help to SMEs and mid-sized companies struggling to practice carbon neutrality due to financial burdens," adding, "We will continue to actively fulfill our role as a policy financial institution by discovering related support areas so that SMEs and mid-sized companies can smoothly adapt to practicing carbon neutrality."