KOTEC to Provide 280 Billion KRW in Support for Climate Tech Companies This Year

Vitalizing Green Loans with the Introduction of the Taxonomy Evaluation Guarantee

On May 2, Korea Technology Finance Corporation (KOTEC) announced the launch of the Taxonomy Evaluation Guarantee, a new program designed to systematically foster green technology and environmental industries. The Taxonomy Evaluation Guarantee is a specialized guarantee for the green sector, in which KOTEC selects eligible recipients using its self-developed Taxonomy Assessment System (KTAS). KOTEC is the first guarantee institution to receive 40 billion KRW from the Climate Response Fund and, based on this, plans to provide 280 billion KRW in guarantees this year.

The program targets small and medium-sized enterprises (SMEs) and mid-sized companies engaged in green economic activities. The limit per company is 3 billion KRW for operating funds and 10 billion KRW for facility funds. KOTEC will apply preferential conditions such as ▲ an increased guarantee ratio (from 85% up to 95%) ▲ and a reduction in guarantee fees (up to 0.4 percentage points). In addition, by linking agreement guarantees with seven banks, KOTEC will provide support for guarantee fees (0.7 percentage points for two years), significantly reducing companies' financial burdens and promoting the growth of the green industry.

Previously, in February, KOTEC signed the "K-Taxonomy Linked Green Credit Activation Business Agreement" with seven banks, including KB Kookmin, IBK, NongHyup, Woori, Shinhan, Hana, and iM Bank. Through this agreement, KOTEC established a cooperative system to support green loan programs based on the K-Taxonomy. As a result, KOTEC is enhancing SMEs' access to green finance and supporting carbon-neutral management.

Applications and consultations for the Taxonomy Evaluation Guarantee are available through KOTEC branches or the Carbon Assessment Center. In addition, within the first half of the year, KOTEC plans to establish and provide an "Open Taxonomy Assessment System" that allows companies and banks to conduct their own assessments, thereby accelerating the foundation for revitalizing green finance.

Kim Jongho, Chairman of KOTEC, stated, "Through the introduction of dedicated guarantee products for companies in the green technology and environmental industries, KOTEC will lead green finance and actively foster climate tech companies with outstanding technologies." He added, "Going forward, we will focus our accumulated green technology evaluation capabilities and strengthen collaboration with the private sector so that more funds can flow into green projects and technologies."

This content was produced with the assistance of AI translation services.