KB Kookmin Bank is expanding corporate financial support with the Korea Credit Guarantee Fund to help companies shift to decarbonisation and build a carbon-free energy ecosystem.

KB Kookmin Bank said on Sunday it signed business agreements with the Korea Credit Guarantee Fund on “productive financial support to promote industrial decarbonisation transition” and “productive financial support to build a carbon-free energy ecosystem.”

Under the agreements, KB Kookmin Bank will make special contributions of 2 billion won to each programme, totalling 4 billion won. The Korea Credit Guarantee Fund plans to supply guarantee certificates worth about 80 billion won based on the contributions.

Eligible companies are those covered by the Korea Credit Guarantee Fund’s “green process transition guarantee” and “carbon-free energy guarantee.”

The guarantee limit per company is up to 3 billion won. Small and medium-sized companies will receive guarantee certificates with a 100 percent guarantee ratio, while mid-sized companies will receive a 95 percent guarantee ratio. The Korea Credit Guarantee Fund plans to cut the guarantee fee rate by 0.5 percentage points to reduce companies’ financial cost burden.

A KB Kookmin Bank official said, “We hope this will provide real help for green companies to secure sustainable competitiveness and strengthen their growth foundation.” The official added, “We will continue to expand productive finance in areas that will be future growth engines.”