On June 23rd, Hanil Cement and Hanil Hyundai Cement signed an agreement with Korea Development Bank for the ‘Industrial-financial cooperation program for the realization of carbon neutrality in the cement industry’.

The signing ceremony held at the headquarters of the Korea Development Bank in Yeouido, Seoul was attended by major cement companies such as Hanil Cement and officials from the Korea Development Bank. Through the business agreement, the cement industry can receive 1 trillion won in aid for carbon reduction facility investment in the cement industry by 2025. The Korea Development Bank also decided to actively cooperate in the development of eco-friendly heat sources and the replacement of raw materials that require commercialization of technology.

The purpose of this agreement is to support the early realization of the government’s ‘2050 carbon neutrality’ goal through investment in coal removal, the expansion of recycled resources in the cement industry, and the transition of the cement industry to an eco-friendly industry. Although the cement industry is an essential key industry, it is one of the three major carbon-emitting industries, emitting 42 million tons of greenhouse gas annually. Korea's coal replacement rate is only 24%, which requires extensive investment compared to the EU's 46% and Germany's 68%, more eco-friendly advanced countries.

With this agreement, Hanil Cement and other major cement companies can expect a transition to an eco-friendly industry by reducing carbon and cost reduction and building a circular economy by reducing coal use.