KDB to Offer KRW 420B to Projects Which Offset Carbon Emissions

South Korea has announced a significant commitment to provide 420 trillion won ($313.4 billion) in policy loans to finance projects to reduce carbon emissions. By 2030, five state financial institutions, including the Korea Development Bank (KDB), will offer these loans to incentivize companies to transition to low-carbon production methods.

This initiative to intensify the fight against climate change was unveiled during a meeting between government officials and the heads of South Korea's five major banks. Alongside policy loans, the KDB and other leading banks, such as Woori Bank and Kookmin Bank, will establish a new fund totaling 9 trillion won to support the construction of new green energy facilities.

The Korea Development Bank, established in 1954 in accordance with The Korea Development Bank Act, plays a vital role in financing and managing major industrial projects to expedite the industrial development of Korea. It is a wholly state-owned policy development bank that has been instrumental in supporting public finances and the corporate sector throughout its history.

With a focus on development finance, corporate banking, and corporate structure development, the KDB has contributed significantly to South Korea's economic growth by providing resources and financial expertise to the country's leading industries and multinational conglomerates. Today, the KDB is a leading corporate bank in South Korea, involved in corporate banking, investment banking, venture capital, technology finance, overseas financing, pension and trust services, research, and credit review.

The commitment to provide substantial policy loans and establish a new fund underscores South Korea's determination to address climate change and transition towards a more sustainable and green economy.