Environmental Improvement Financing Subsidy

K eco provides a subsidy with a low-interest rate to business operators in the field of the recycling, of installing the environmental contamination facility, who desire to install the natural gas supply facility and its auxiliary facilities, and the self-governing bodies which desire to install (replace) the environmental infrastructure so as to strengthen the fundamentals of the environment industry.

Project Execution System

The government subsidizes financing to execute the outlay.

Supervising Body

Korea Environment Corporation

Subsidy Type

Private Sector

It is an indirect financing where the financial institute gives loans with the security package settled once the financing approval is obtained for security in recollecting the financing subsidy

Self-governing Body

It is a direct financing where the subsidy is given based on the body’s municipal bonds issuance approved by the Ministry of Public Administration and Security.

Determining Interest Rate

The interest rate will be determined pursuant to the mean value of the profit rates of the 5-year treasury bond under the Article 12 (Lending Rates) of the [Depository & Financing Condition Determinant Conditions on the Public Capital Management Fund].

The Minister of the Environment shall refer to the promulgation by the Ministry of Strategy and Finance to make the final decision and announcements accordingly.

Conditions for Financing Support

Unit Project	Subsidy Field	Lending Rates (variable)	Lending Period	Subsidy Ceiling
Financing to cultivate recycling industry	Facility fund	4.20% (yearly)	Repaying in 7 years with a 3-year grace period (within 10 years)	Under KRW3 billion
	Technological development fund			Under KRW400 million
	Waste reduction facility fund			Under KRW1 billion
	Management stability fund		Repaying in 3 years with a 2-year grace period (within 5 years)	Under KRW1 billion
	Retail & sales support fund			Under KRW200 million
Environmental improvement fund	Facility fund	4.83% (yearly)	Repaying in 4 years with a 3-year grace period (within 7 years)	Under KRW3 billion
Natural gas supply facility installation	Fixed	4.20% (yearly)	Repaying in 10 years with a 5-year grace period (within 15 years)	Under KRW700 million per facility
	Portable			Under KRW200 million per 1 set
Regional waterworks service development for midsize cities	Facility fund	3.20% (yearly)	Repaying in 10 years with a 5-year grace period (within 15 years)	Self-governing body KRW3 billion for Gyeonggi and Gwangju-si KRW850 million for Gimhae-si

Private Investment Projects on Environmental Facilities (BTL, BTO)

K eco is committed to establishing the waterworks/sewerage facilities of the self-governing bodies through professional technical supports for the private-invested projects on waterworks/sewerage facility installations led by the private capitals and efficient management methods.

Target Facilities

• They should be the social infrastructure pursuant to the stipulations under the Article 2 of the Private Investment Act on the Social Infrastructure and subsidized by the government
• The ‘environmental facility’ pursuant to the stipulations under the Article 2 of the Act on the Environmental Technology Development and Supports (e.g., sewerage facilities, sewerage / recycling facilities, wastes treatment facilities etc.)

Project Type

Private-Invested Lease Project on Sewage Pipe Organization (BLT: Build Transfer Lease)	Private-Invested Profit Project on Environmental Facility (BTO: Build Transfer Operate
The private sector builds a state-run facility, and leases it from the government to reimburse their investment.	The private sector procures the finance to design and build the social infrastructure. Upon completing the project, the ownership of it is transferred to the nation or the self-governing body so that the contractor can reimburse the investment for the management rights of a certain period.