Korea Development Bank to Provide 1 Trillion Won Over 5 Years for Eco-Friendly Transition in Cement Industry

Agreement with Major Cement Companies Extended Until 2030

On December 17, Korea Development Bank announced that it had signed a second business agreement with the Korea Cement Association and major cement companies (Sampyo Cement, Ssangyong C&E, Hanil Cement, Asia Cement, Sungshin Cement, Halla Cement). The main content of this agreement is the extension of the 'Industrial and Financial Cooperation Program for Achieving Carbon Neutrality in the Cement Industry,' originally signed in 2021, until 2030.

Since the signing of the initial agreement, Korea Development Bank has supported facility investments totaling approximately 740 billion won for the installation of carbon reduction equipment at major cement companies. Through this second agreement, the bank plans to provide an additional 1 trillion won in support by 2030. The industry has utilized alternative fuels, such as approximately 170 million tons of waste-derived resources, which emit less carbon than bituminous coal. However, the proportion of alternative fuel use (35%) remains lower than the European Union (EU) average of 53%. To address this, the industry aims to raise the alternative fuel usage rate to 65% by 2030 through additional investments.

With this agreement, the cement industry will continue to invest in eco-friendly facilities, substitute raw materials, and develop alternative heat sources to help achieve the government's '2050 Carbon Neutrality' goal. Korea Development Bank plans to strengthen its financial support to back these industry efforts.