Busan City Becomes First in Nation to Fully Cover Financial Costs for Climate Tech Companies

Business Agreement Signed Between City, BNK Financial Group, and Korea Technology Finance Corporation at 11 a.m. on the 2nd at City Hall

Mayor Park Hyungjun, BNK Financial Group Chairman Bin Daein, and Korea Technology Finance Corporation Chairman Kim Jongho Attended

Busan City will be the first in the nation to fully support the financial costs of carbon reduction technology companies (climate tech companies).

At 11 a.m. on the 2nd, the city will sign a "Business Agreement for Full Support of Financial Costs for Carbon Reduction Technology Companies (Climate Tech Companies)" with BNK Financial Group and Korea Technology Finance Corporation at the City Hall International Protocol Office.

Park Hyungjoon, Mayor of Busan, Bin Daein, Chairman of BNK Financial Group, and Kim Jongho, Chairman of Korea Technology Finance Corporation, will attend the signing ceremony and sign the agreement in person.

This agreement was prepared to establish an organic collaboration system among the participating organizations to encourage bold investments in carbon reduction technology companies and to jointly support the financial costs of carbon reduction technology companies with high growth potential.

This project was proactively planned to lead carbon neutrality by encouraging research and development and expanding investment in carbon reduction technologies.

Through this agreement: ▲BNK Financial Group will launch a low-interest product exclusively for carbon reduction technology companies; ▲the city will fully support loan interest for two years; and ▲Korea Technology Finance Corporation will provide support for technology evaluation fees and preferential guarantees.

This is the first case in the country where the city fully supports loan interest and Korea Technology Finance Corporation covers technology evaluation fees and preferential guarantees, effectively reducing the financial burden of using financial products to zero for companies.

The loan scale will be 10 billion KRW per year, totaling 20 billion KRW over two years, and each company can receive up to 500 million KRW in operating funds as loans without interest burden for two years.

Eligible companies are small and medium-sized enterprises located in Busan that possess carbon reduction technologies and fall under the external reduction company category of Korea Technology Finance Corporation's Carbon Value Evaluation Guarantee for carbon reduction types.

Applications can be made through Korea Technology Finance Corporation, and after receiving a carbon value evaluation, loans will be available from August at Busan Bank and Kyongnam Bank, subsidiaries of BNK Financial Group.

Detailed information will be announced on the city’s official website on July 22.

Park Hyungjoon, Mayor of Busan, stated, "This project is a meaningful initiative that fully supports the financial costs of operating funds needed by carbon reduction technology companies in the Busan area," and added, "This project will reduce the burden of technology commercialization for carbon reduction technology companies, accelerate the development of the carbon reduction technology (climate tech) industry, and serve as an important opportunity for Busan to achieve the 2050 carbon neutrality goal ahead of others."