Korea Credit Guarantee Fund (KODIT) announced the successful completion of a two-week training program conducted to strengthen SMEs’ innovative finance capabilities for public officials and policymakers in seven emerging economies. It began on Sept. 14 and lasted for two weeks.
KODIT was selected as an implementing agency for the Korea International Cooperation Agency (KOICA)’s three-year global training program.
In the program’s inaugural year, it zoomed in on green finance. In the second and third years, the program will focus on digital finance and startup support.
This program welcomed 13 participants, including finance ministries, central bank officials and credit guarantee institution staff from seven countries - Vietnam, the Philippines, Sri Lanka, Cambodia, Thailand, Libya, and Ecuador.
The training program, based on the latest trends in green finance and examples of Korean policy support, consisted of practical courses, such as an analysis of operational cases of green guarantee systems, visits to green guarantee companies, and introductions to policy institutions, such as the Global Green Growth Institute (GGGI), Korea Development Bank, and Industrial Bank of Korea and the development of customized implementation plans for participating countries.
“I directly learned Korea’s green finance and practical operational practices this time,” said Soriya Nhim, a representative of the trainees from Cambodia Credit Guarantee Corporation.
“It will be a valuable opportunity to advance green finance in Cambodia. In particular, KODIT’s advanced guarantee system and systematic credit assessment and risk management methods will serve as a role model for supporting SMEs.”
“This training program is significant as a platform for cooperation to address the global goals of addressing climate change and promoting sustainable development,” said Choi Won-mok, chairman of KODIT.
“KODIT will continue to support emerging countries through various international cooperation activities, including global training.”
Designation as Green Certification Evaluation Agency
KODIT announced that it has been officially designated as a “green certification evaluation agency” by the Financial Services Commission (FSC).
The green certification evaluation system, established under the Basic Act on Carbon Neutrality, evaluates and certifies whether a company’s technology and products conform to low-carbon and eco-friendly values. It was introduced to foster green industries.
SMEs that receive green certifications take home various benefits, including priority support for policy funds, such as guarantees and export financing, as well as preferential treatment in contracts with the Public Procurement Service (PPS) and public procurement.
KODIT plans to strengthen financial and non-financial support for certified small and medium-sized SMEs through green certification evaluations including: preferential guarantee limits; a 90-percent guarantee ratio; a guarantee fee cut of up to 0.5 percentage points and ESG consulting. This will support ESG management.
Previously, KODIT made the Green Finance Master Plan to systematically support low-carbon transitions by companies and has made various efforts to expand green finance and reduce greenhouse gas emissions for SMEs.
KODIT evaluates SMEs’ compliance with green economy activities according to the Korean Green Taxonomy (K-Taxonomy) and provides preferential treatment.
The company also introduced green asset-backed securities (G-ABS), a first for a Korean company, enabling SMEs to issue green bonds for SMEs.
Furthermore, in 2024, KODIT provided a total of 11.04 trillion won in green finance through programs such as the Green Process Transition Guarantee and the Special Green Venture Company Guarantee, and approximately 6.33 trillion won was provided in the first half of this year.
This year, KODIT introduced new carbon-free energy guarantees and customized offshore wind power guarantees. Furthermore, in collaboration with Korea Electric Power Corporation and Korea Water Resources Corporation, it will launch a program to support companies with outstanding energy savings by combining electricity and water usage data with KODIT’s corporate data.
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