South Korea and its local banks have committed to investing KRW452tr (USD337.4bn) by 2030 to address climate change, aligning with the country’s goal for carbon neutrality by 2050. This effort aims to enhance the competitive edge of domestic firms internationally. The initiative includes a KRW420tr policy financing scheme for carbon reduction and the creation of a KRW9tr ‘Future Energy Fund’ for green energy facilities. Additionally, KRW14tr will be provided in subordinated loans, and venture capital of KRW54tr is planned to stimulate further investment. The strategy also involves a KRW9tr investment to foster technological advances in the climate sector, acknowledging the green technology market’s potential and the country’s need to catch up in climate technology. Regulatory improvements in climate finance are also promised.
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