KB Kookmin Bank Puts KRW 4 Billion Into Decarbonization and Carbon-Free Energy Loan Guarantees

KB Kookmin Bank has committed KRW 4 billion to the Korea Credit Guarantee Fund to back loans for companies working on decarbonization and carbon-free energy. The money will support two programs: one for industrial decarbonization and another for building a carbon-free energy ecosystem. Based on this contribution, the fund will issue guarantees worth around KRW 80 billion, enabling banks to lend to qualifying businesses. Eligible companies include those reducing greenhouse gas emissions through new equipment or process improvements, as well as firms in hydrogen, fuel cells, solar, wind, nuclear, and fusion energy. Each company can receive up to KRW 3 billion in guarantees, with SMEs getting 100% coverage and mid-sized firms 95%. The guarantee fee is also reduced by 0.5 percentage points. This is a concrete example of a major bank using its balance sheet to lower the cost of capital for green projects. The leverage ratio of 20x on the contribution means the KRW 4 billion unlocks significant lending capacity. It will be interesting to see how quickly these guarantees get deployed and which technologies see the most uptake.