KB Kookmin Bank offers 80 billion won in guaranteed loans for decarbonisation firms via Korea Credit Guarantee Fund partnership

KB Kookmin Bank has signed agreements with the Korea Credit Guarantee Fund to provide 80 billion won in guaranteed loans for companies working on decarbonisation and carbon-free energy. The bank is contributing 4 billion won in special contributions, which the fund will use to back guarantee certificates for eligible firms. Small and medium enterprises get a 100 percent guarantee ratio, while mid-sized companies get 95 percent. The fund is also cutting guarantee fees by 0.5 percentage points to lower borrowing costs. Eligible companies fall under the fund's green process transition guarantee and carbon-free energy guarantee programs. Each firm can receive up to 3 billion won in guarantees. The move aims to help green companies secure financing and build a carbon-free energy ecosystem in South Korea. This is a concrete example of how public-private partnerships can channel capital into industrial decarbonisation. For carbon market watchers, this deal shows how state-backed credit guarantees can reduce financial barriers for companies transitioning to low-carbon operations. The program's focus on process transition and carbon-free energy could serve as a model for other regions looking to scale up green lending without direct subsidies.