The National Credit Union Federation of Korea will provide loans covering up to 85% of the funds needed to build power generation facilities for "sunlight income villages," a resident-led solar power initiative.
The federation said on the 13th that it signed an agreement on carrying out interest subsidy work for a renewable energy financial support program with the Korea Energy Agency, the National Agricultural Cooperative Federation, the National Federation of Fisheries Cooperatives and the Korean Federation of Community Credit Cooperatives at the Koreana Hotel in Seoul.
The agreement is designed to support the creation and expansion of sunlight income villages, in which local residents jointly produce renewable energy and share the revenue from power generation. It focuses in particular on easing the burden of initial investment costs for resident-led solar power facilities to strengthen the villages' foundation for self-sufficiency.
Loans are available to sunlight income villages that have obtained a letter of recommendation from the Korea Energy Agency. Interest will be charged at a floating rate calculated based on the lending rates of non-bank financial institutions published in the Bank of Korea's Economic Statistics System. Interest subsidies from the Korea Energy Agency can further reduce borrowing costs.
"This agreement carries significant meaning in that credit unions are expanding financial support in the energy sector, one of the four leading models presented in the government's comprehensive plan for developing the social and solidarity economy," said Ko Young-chul, chairman of the National Credit Union Federation of Korea. "We will continue to fulfill our role as a financial cooperative so that local residents can participate as the main players in renewable energy projects and share in the results together."