Government Holds Investment Briefing on Future Cars and Green Industries: "Green New Deal Requires Private Sector Participation"

Minister of Environment Jong-Rae Cho and Minister of SMEs and Startups Young-Sun Park (right) / Photo by Jin-Hyung Kang aymsdream@

[Asia Economy Reporter Kim Bo-kyung] The Ministry of Environment, the Financial Services Commission, and the Ministry of Economy and Finance jointly held an investment briefing session related to the Green New Deal, including eco-friendly future vehicles and green industries, on the 26th.

The briefing session took place at the Yeouido Industrial Bank IR (Investor Relations) Center, attended by Minister of Environment Cho Myung-rae, Assemblyman Ahn Ho-young, First Vice Minister of Economy and Finance Kim Yong-beom, and representatives from the industrial and financial sectors.

The number of on-site attendees was minimized to fewer than 20 people, while about 100 representatives from the industrial and financial sectors participated through online channels. The event was broadcast live on the YouTube channel.

At this event, explanations were given on the main policy directions in key Green New Deal sectors such as eco-friendly future vehicles including electric and hydrogen cars, and green industries, as well as plans to promote green finance as a foundation to accelerate these efforts.

In the future vehicle sector, policy directions aimed at advancing the era of mass adoption of future vehicles while activating private investment were introduced.

The government plans to support fuel purchase costs at hydrogen charging stations and lower hydrogen supply prices to secure economic feasibility. New business models such as bio and liquefied hydrogen charging stations and mega stations will also be explored.

Additionally, subsidies for electric taxis and buses will be increased, and demand in the private sector will be actively created through the K-EV 100 campaign. The K-EV 100 campaign is a declaration by companies to voluntarily convert 100% of their owned or leased vehicles to future vehicles by 2030.

In the green industry sector, strategies to support the innovative growth of green small and venture businesses and to become a leading green industry nation were introduced.

The Ministry of Environment and the Ministry of SMEs and Startups will establish a dedicated green venture fund of 300 billion KRW to intensively support promising green companies. They will strengthen full-cycle support from startup to overseas expansion by providing up to 3 billion KRW per company for commercialization and research and development funds.

They plan to create cluster areas to promote collaboration between companies and support organizations, such as green convergence clusters and green startup towns, and also form and operate consultative bodies to identify and resolve on-site difficulties.

Measures to activate green finance to guide market liquidity into Green New Deal sectors were also discussed.

Clear classification standards for green economic activities, which form the basis of the green finance system, will be established, and guidelines will be presented to activate green bonds with high market ripple effects.

Notably, Chungcheongnam-do Province participated in this investment briefing session to present on coal phase-out treasury accounts as a green finance policy direction led by local governments. Emphasizing the need to transition from coal power to renewable energy, they requested participation from many local governments, education offices, and financial institutions.

Minister Cho stated, "For the successful promotion of the Green New Deal, it is essential to leverage government efforts and further ensure private sector participation," adding, "We will discover various policy tasks such as institutional improvements to attract private investment."

The government is continuously holding sector-specific New Deal investment briefing sessions to increase understanding and interest among private operators and investors regarding the Korean New Deal policy and New Deal funds. Next month, the sessions will continue focusing on other New Deal sectors such as smart farms, smart cities, and eco-friendly ships.