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NongHyup Bank committed 8 trillion won over five years to support new energy projects and loans for smart farms that would enable greater use of information and communication technology in farming.
The agricultural lender said it will prepare a special loan program based on environmental, social, and corporate governance.
It will focus on fostering projects supporting South Korea's “Green New Deal” initiative that facilitates the transition to renewable energy from thermal power.
Major South Korean banks had outlined long-term plans for investments in “green” and “digital” projects.
Other banking groups have also rolled out investment plans in the initiative since the government announced 160 trillion won worth of economic support packages in July.
Woori Financial Group will expand corporate investment in eco-friendly businesses and invest over 200 billion won in renewable energy and other green business areas.
Last month, Hana Financial Group pledged 10 trillion won in building digital infrastructure and broker investments in various forms of renewable energy. It signed an agreement with Doosan Group to provide direct and indirect financing for the group’s renewable energy business, focusing on wind power projects and hydrogen fuel cell projects.
KB Financial Group announced it would invest 9 trillion won by 2025 into a range of projects that integrate digital and green ideas, while Shinhan Financial Group has been combining Korean New Deal values with financially supporting promising industries and digital finance.
Korea Development Bank vowed to expand its investment to support four key areas of the New Deal, namely contactless service, artificial intelligence, data, and networks.
Another state-run lender, the Industrial Bank of Korea plans to establish five funds supporting the government’s new economic policy worth a total of 185.5 billion won in the second half.
