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Busan Metropolitan City Reports Financial Support Achievements for Climate Tech Companies: 42 Participating Firms and 20 Billion Won in Operating Capital Financial Cost Support

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Busan Metropolitan City (Mayor Park Heong-joon) announced that the “Climate Tech Company Financial Cost Interest Subsidy Support Program,” implemented to foster climate new technologies among local small and medium-sized enterprises and to realize a carbon-neutral city by 2050, has achieved results including financial cost support for operating capital totaling 20 billion won for 42 participating companies.

The estimated carbon reduction resulting from the production of carbon-reducing products by participating companies is calculated at a total of 37,435 tons CO2eq (carbon dioxide equivalent) from 2024 to 2025 following the implementation of the program.

This is comparable to the effect of planting approximately 3.74 million 30-year-old pine trees.

The “Climate Tech Company Financial Cost Interest Subsidy Support Program” has been implemented since 2024 to ease the financial burden of climate tech small and medium-sized enterprises located in Busan and to support the growth of companies developing climate-related new technologies.

The program operates with a total scale of 20 billion won (up to 500 million won in operating capital per company for up to two years) and, in cooperation with Korea Technology Finance Corporation and BNK Financial Group, provides full support for financial costs for the first time nationwide.

Financial costs include loan interest, carbon value assessment fees, and guarantee fees (0.5%).

As a result of the recruitment of participating companies, 42 companies possessing carbon reduction technologies and producing carbon-reducing products participated, fully utilizing the 20 billion won in operating capital support.

The supported operating capital was used for corporate operating expenses such as the purchase of raw materials, labor costs, and technology development expenses.

By industry, the participating companies consisted of electrical and electronics (38 percent), machinery (33 percent), and non-metallic materials (17 percent). By location, companies were largely concentrated in areas with industrial complexes, including Gangseo-gu (43 percent) and Gijang-gun (14 percent).

According to a survey on operational conditions and satisfaction conducted by Busan Economic Promotion Agency and Busan Metropolitan City targeting participating companies, all responding companies expressed high satisfaction with the program.

In the operational survey conducted by Busan Economic Promotion Agency, all responding companies selected “very helpful” (the highest rating). In the satisfaction survey conducted by Busan Metropolitan City, both the perceived necessity of the program and satisfaction level recorded 100 percent.

Participating companies stated that the support helped stabilize management during a time when they were facing rising raw material prices and difficulties securing export markets due to a strong currency environment and economic slowdown.

To foster the climate tech industry, Busan Metropolitan City plans to establish the “Busan Metropolitan City Climate Tech Governance” and formulate a “Comprehensive Plan for Fostering the Climate Tech Industry,” through which it will continue promoting related support programs.

The city established the “Busan Metropolitan City Climate Tech Governance,” an industry-academia-research cooperation body, in February this year, with a total of 30 participants including city departments, related institutions, and climate tech companies.

Through this governance body, the city plans to incorporate the needs of local companies into the comprehensive plan and pursue policy proposals and the discovery of additional support programs.

Lee Byeong-seok, Assistant Mayor of Environmental Water Policy Office of Busan Metropolitan City, stated, “We are pleased that this program has helped local climate tech small and medium-sized enterprises that are experiencing management difficulties. Busan Metropolitan City will do its best to create a business-friendly city by expanding support for companies and fostering climate-related new technologies in order to seize the opportunity presented by climate tech as a new growth engine.”