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S. Korea to provide W420tr in policy loans for carbon emission reduction by 2030

March 19, 2024 - 10:04 By Yonhap
Kim Joo-hyun, head of the Financial Services Commission, speaks at the Korea Exchange in Seoul on Feb. 26, during a seminar to discuss how to encourage local firms to improve their value. The financial regulator said that it will work to incentivize efforts by local businesses to enhance their own value that will in turn lead to increased returns to investors. (Yonhap)

South Korea's financial regulator unveiled an ambitious plan Tuesday to provide 420 trillion won ($315 billion) in policy loans by 2030 to help reduce greenhouse gas emissions.

Seoul has pledged to reduce its greenhouse gas emissions by 37 percent from business-as-usual levels.

"There exist concerns that the global competitiveness of our exporters may dwindle should we fail to take appropriate steps to meet the increasing emissions-related regulations in other countries," the Financial Services Commission said.

The plan was unveiled in a meeting with the heads of five major banks here, which was also attended by the minister of environment and head of the Presidential Commission on Carbon Neutrality and Green Growth.

In addition to the policy support, the state-run Korea Development Bank and five commercial banks will create a 9 trillion-won fund to help finance the construction of new green energy sources, according to the FSC.

The five commercial banks, together with another policy lender Industrial Bank of Korea, will create an additional 9 trillion-won fund to be invested in the development of new green technologies, it added.

"The measures announced today will mark a very meaningful first step in dealing with climate change through cooperation between the government, policy lenders and banks," FSC Chairman Kim Joo-hyun told the meeting, according to the financial regulator. (Yonhap)