Busan, BNK and KOTEC Launch KRW 15 Billion Climate Tech Financing

Busan Metropolitan City, BNK Financial Group and the Korea Technology Finance Corporation (KOTEC) have signed an agreement to provide KRW 15 billion in financial support to climate technology companies in South Korea. Signed on 6 November 2026 at Busan City Hall, the partnership aims to reduce financing costs for local small and medium-sized enterprises (SMEs), support the commercialisation of carbon reduction technologies and accelerate investment in low-carbon manufacturing processes.

The programme targets SMEs headquartered or primarily operating in Busan that meet KOTEC's eligibility requirements for carbon value assessment guarantees. Participating institutions will provide financing assistance through interest subsidies, reduced guarantee fees, and preferential loan guarantees. The initiative is designed to improve access to capital for businesses developing climate technologies and investing in environmentally sustainable production facilities.

 

Read more: Gabon Signs 6 Million Forest Carbon Credit Deal with SEFE

 

Under the agreement, Busan Metropolitan City will subsidise a portion of loan interest payments and support companies in establishing greenhouse gas inventories to measure and manage emissions. BNK Financial Group will provide preferential interest rates and guarantee fee assistance, while KOTEC will waive technology assessment fees and offer enhanced guarantees. BNK Busan Bank and BNK Kyongnam Bank will administer the loans, with financing conditions determined under the participating institutions' operating guidelines.

The partnership expands existing cooperation between Busan, BNK Financial Group and KOTEC on financing carbon reduction technologies. Their previous agreement, established in July 2024, focused on lowering financing costs for businesses developing emissions-reduction solutions. The new programme broadens support for working capital and investment in facilities, helping local companies move technologies towards commercial deployment.

Busan Mayor Chun Jae-soo said, "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."

The financing initiative will support Busan's efforts to expand its climate technology sector while helping SMEs manage the costs of adopting cleaner production processes. Actual financing uptake and emissions reductions will depend on eligible businesses securing support and implementing their planned projects.

 

Source: Busan Metropolitan City