Government Provides 100 Billion KRW New Loans for Carbon Reduction Investments by Companies

Recruitment of Companies for 'Carbon Neutral Transition Leading Project Loan Support' Begins on the 6th

The government will provide loans worth 100 billion KRW to companies that proactively invest in greenhouse gas reduction facilities and research and development (R&D).

On the 5th, the Ministry of Trade, Industry and Energy announced that it will recruit companies eligible for the 2025 'Carbon Neutral Transition Leading Project Loan Support' program, which promotes carbon-neutral transition in the industrial sector, from the 6th of this month until the 14th of next month.

This program supports loans for large-scale facilities that drastically reduce greenhouse gas emissions and innovative R&D projects with significant technological and economic ripple effects. Since 2022, it has provided low-interest loans totaling 532.9 billion KRW to 72 projects, leading domestic investments worth 2.3037 trillion KRW in the carbon reduction sector.

Applications are open not only to small and medium-sized enterprises (SMEs) and mid-sized companies planning carbon reduction investments but also to large corporations. Selected companies can receive low-interest loans at rates in the 1% range for up to 10 years (3 years grace period, 7 years equal installment repayment), with a maximum of 50 billion KRW (10 billion KRW for R&D funds). As of March, the applicable interest rates are 1.43% for SMEs and mid-sized companies, and 1.93% for large corporations.

Notably, this year, companies that have received approval for business restructuring plans under the 'Special Act on Revitalizing Corporate Vitality' will be awarded additional points (2 points).

Detailed information about the announcement can be found on the Ministry of Trade, Industry and Energy website and the Korea Industrial Complex Corporation website. The ministry plans to hold business briefing sessions in five regions and operate consultation desks for finance and guarantees.