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Busan Metropolitan City, BNK Financial Group, and Korea Technology Finance Corporation Sign Agreement to Ease Financing Costs for Climate Tech Companies

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Busan Metropolitan City (Mayor Chun Jae-soo) announced that it will sign a Memorandum of Understanding (MOU) on Financial Cost Support for Climate Tech Companies in Busan Metropolitan City with BNK Financial Group and the Korea Technology Finance Corporation (KOTEC) at 10:00 a.m. today (November 6) in the International Protocol Room at Busan City Hall.

The signing ceremony will be attended by Mayor Chun Jae-soo, BNK Financial Group Chairman Bin Dae-in, KOTEC Chairman Kwon Hyeong-taek, and other officials, who will sign the agreement.

The agreement aims to ease the financial burden on local SMEs with innovative technologies addressing the climate crisis while supporting the commercialization of climate technologies and the transition to low-carbon production processes.

The participating institutions will establish a financial and technical support framework to help companies secure the funding they need and provide a total of KRW 15 billion in financial support.

Eligible beneficiaries are SMEs headquartered or primarily operating in Busan that meet KOTEC's eligibility requirements for carbon value assessment guarantees.

Under the agreement, the three institutions will share responsibilities for supporting corporate financing, including loan interest subsidies, guarantee fee assistance, and preferential guarantees.

Busan Metropolitan City will subsidize a portion of loan interest payments and support the establishment of greenhouse gas inventories to help companies systematically assess and manage their greenhouse gas emissions.

BNK Financial Group will ease companies' financing costs by offering loans at preferential interest rates and providing guarantee fee assistance, while KOTEC will waive technology assessment fees and provide preferential guarantees.

Loans under the agreement will be handled by BNK Busan Bank and BNK Kyongnam Bank, with detailed terms and conditions determined in accordance with the agreement and each institution's operating guidelines.

The initiative will improve companies' access to financing through technology assessments based on carbon value assessments while supporting the commercialization of carbon reduction technologies and investment in environmentally friendly facilities.

Mayor Chun Jae-soo stated, "I hope this agreement will serve as a catalyst for easing the financial burden on climate tech companies and accelerating the commercialization and on-site demonstration of carbon reduction technologies, as well as investment in low-carbon facilities."

He added, "We will work closely with the participating institutions to deliver effective financial and technical support, facilitate the low-carbon transition of local SMEs, and foster the growth of the climate tech industry."