Chairman Lee Dong-gull of Korea Development Bank. (Photo: KDB)

Korea Development Bank (KDB) announced on Aug. 6 that the state-run bank has signed an MOU on pushing forward with the Eco-Friendly Ship Support Program with Korea Ocean Business Corporation (KOBC).

This agreement is aimed at sharpening the Korean shipping industry’s competitiveness and supporting its eco-friendly transformation.

It will accomplish that by implementing the ‘KDB-KOBC Joint Investment Program’ as part of the plan to supply eco-friendly ships included in the Shipping Industry Leading Country Strategy, which was announced by the Korean government on June 29.

The joint investment program will cost $600 million ($300 million each from KDB and KOBC) and target eco-friendly energy-powered ships (excluding container ships and including carriers) or eco-friendly ships loaded with eco-friendly equipment. KDB and KOBC will go 50-50 as joint investors.

The program is expected to promote Korean shipping companies’ eco-friendly transformation to smoothly meet international environmental regulations through customized financial support when ordering vessels or purchasing secondhand ones.

“KDB’s eco-friendly ship support program established with KOBC will help Korean shipping companies secure future growth engines in rapidly changing environments at home and abroad,” a KDB official said.

“At the same time, the Korean shipping and shipbuilding industries will be able to secure competitiveness and win-win models in the mid- to long-term thanks to this program. By doing so, we will create synergies in policy finance.”

In addition, KDB announced on July 29 that it will give support to five mid-sized companies in issuing ESG corporate bonds, with a view to expanding the base of ESG bonds mainly issued by state-run, financial and large companies.

The five companies understand the importance of ESG management, and KDB has a strong will to support ESG engagement.

The funds raised this time will go into green investments in eco-friendly energy, eco-friendly ships and electric and hydrogen vehicles. The bonds were certified as green bonds by NICE Investors Service.

The issuance will mark the first issuance of ESG bonds through a liquidation method. KDB will support the five companies with their privately placed corporate bonds as a basic asset after their credit reinforcement by KDB, considering the use of funds, corporate sizes, credit ratings and interest rates.

In the meantime, KDB and KAIST Business School announced in early August that they will run the KDB-KAIST MBA Startup Internship Program by linking MBA students to promising startups invested in by KDB.

This program is meaningful in providing startups with opportunities to utilize talent, and participating students with opportunities to understand a startup ecosystem based on field experience and promoting their enterprising spirit.

In particular, it will be Korea’s first startup internship program targeting talented people in MBA courses.
Four startups, which received investment from KDB, hired a total of eight interns. The program will run for two months.

The program was designed to meet the needs of companies, so the startups selected job categories and students’ majors.