Cha Dong-seok, chief financial officer and vice president of LG Chem

LG Chem announced on April 23 that it had obtained 550 million euros in a green loan from national financial institutions, including the Korea Development Bank (KDB).

The green loan is part of US $ 5 billion to be granted to LG Chem by KDB, Korea Export-Import Bank and NH Nonghyup Bank for five years under the “Industrial and Financial Cooperation Program” .

In general, green loans are given to finance environmentally friendly projects such as electric vehicles, renewable energies and high efficiency energies.

The green loan will help LG Chem finance the expansion of the itw electric vehicle battery plant in Poland. This year, the company plans to invest 3 trillion won in facilities in the battery sector. In addition, LG Chem and KDB decided to run the Win-Win Growth Fund worth 150 billion won at the start to help suppliers of materials, parts and equipment overcome the financial difficulties triggered by the new coronavirus crisis.

The fund, established with 60 billion won from LG Chem and 90 billion won from KDB, is a low-interest loan fund designed to provide operating funds such as those for supplier equipment investments.