HF Offers Financing Assistance to SMEs That Pursue ESG Management

- HF and IBK create an ESG fund worth KRW 15 billion

- The loans come with an upper limit of KRW 500 million and a discount of at least 1.3%p from the annual interest rate

Korea Housing Finance Corporation (HF, CEO Choi Joon-Woo) is supporting small- and medium-sized enterprises that have integrated environmental, social, and governance (ESG) factors into their business by offering financing assistance. This decision has come as part of its bid to promote ESG management across the nation.

HF announced on December 20, 2021, that it and the Industrial Bank of Korea (IBK, CEO Yoon Jong-Won) signed the ‘Agreement on Financing Assistance to Boost Support for ESG-Focused SMEs’ <see image below>.

Under the agreement, HF and IBK are creating a KRW 15 billion fund to provide low-interest loans to SMEs that ▲ are environmentally friendly, ▲ fulfill their social responsibility as a corporate citizen, and ▲ have sound governance in place. 

The loans are offered at an upper limit of KRW 500 million and a discount of at least 1.30%p from the annual interest rate calculated for each individual business. Loan details are available at IBK branches. 

An HF official commented, “We hope that this agreement will help more SMEs embrace ESG management and also reduce their interest burden. We will continue to support SMEs’ ESG adoption and integration into their business, playing a leading role in establishing an ESG ecosystem.” 

As part of its efforts to implement the government’s recent initiative for the Korean New Deal and conversion to an eco-friendly and inclusive economy, HF has established the HF ESG Management Implementation Plan. Under the institution-wide plan, it has set 20 key objectives and 100 tasks to lead ESG management by example. 

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Korea Housing Finance Corporation (HF) and the Industrial Bank of Korea (IBK) signed the Agreement on Financing Assistance to Boost Support for ESG-Focused SMEs at the IBK headquarters in Jung-gu, Seoul, on the 20th. HF Director Cho Jeom-Ho (left) and IBK Vice President Park Ju-Yong pose for a photo after the signing ceremony.