Ando-geol, the 2nd Vice Minister of the Ministry of Economy and Finance, is speaking at the Honam and Jeju Region Budget Council held at the Jeonnam Provincial Office on the 4th. 2021.8.4 [Photo by Yonhap News]
[Sejong=Asia Economy Reporter Son Seon-hee] The government plans to expand the budget for research and development (R&D) related to solar power and increase subsidies and financial support for related facilities.
On the 4th, Ando-geol, Vice Minister of Strategy and Finance, visited a solar power generation facility in Haenam-gun, Jeollanam-do, and discussed the current status of solar power-related policies and investments. Vice Minister Ahn stated, "To achieve carbon neutrality by 2050, bold innovation that overcomes the limitations of existing solar power distribution methods, site acquisition, and technology is necessary," and announced plans to actively support the expansion of related investments so that domestic solar power technology levels and industrial ecosystems can secure global competitiveness.
This year, the budget allocated for core new renewable energy technology development related to solar power is 78.5 billion KRW, and this amount is expected to be significantly expanded in next year's budget allocation. In addition, to create demand for solar power, subsidies for self-use renewable energy facilities for houses and general buildings (313.3 billion KRW) and low-interest financial support at 1.75% for business-use solar power installations (534 billion KRW) will also be increased respectively.
Along with this, it was announced that the Green Innovation Financial Loan Project, aimed at local residents' participation and profit sharing in solar power, will be supported intensively. The scale of the Green Innovation Financial Loan Project, newly established this year, is 37 billion KRW.
The government is also promoting the second phase of fiscal decentralization, focusing on expanding resources for basic local governments. It has been arranged that metropolitan local governments distribute the increased local consumption tax revenue (13 trillion KRW in 2023) by about 30% to the basic local governments under their jurisdiction through adjustment grants, allocating the funds between metropolitan and basic local governments at a 40:60 ratio. Furthermore, the national subsidy rate for welfare projects such as basic pensions for basic local governments will be raised by about 200 billion KRW. Additionally, the proportion of local allocation tax distribution to basic local governments will be increased, and the share of basic local governments in local matching funds for national subsidy projects will be reduced.
Meanwhile, Vice Minister Ahn held a budget consultation meeting for the Gwangju, Jeolla, and Jeju regions at the Jeonnam Provincial Office in Muan-gun, Jeollanam-do, and listened to proposals for major regional projects. These include ▲ AI-centered industrial convergence complex development (Gwangju) ▲ Saemangeum International Airport (Jeonbuk) ▲ Southwest Coast Tourism Road (Jeonnam) ▲ Jeju Public Sewage Treatment Facility Modernization (Jeju) ▲ Clean Air Industry Cluster Development (Gwangju) ▲ Eco-friendly Transportation Demonstration Research Base Construction (Jeonbuk) ▲ Advanced Unmanned Automated Agriculture Production Pilot Complex Development (Jeonnam) ▲ Regional Specialized Industry Promotion (Jeju, etc.) ▲ Green ESS Power Generation (Gwangju) ▲ Carbon Convergence (Jeonbuk) ▲ New Energy Industry (Jeonnam) ▲ Electric Vehicle Charging Service (Jeju).
Vice Minister Ahn stated, "We will prioritize support for projects in the Honam and Jeju regions linked to national balanced development projects, regional balanced New Deal projects, regulatory free zones, economic free zones, and regional specialized industry promotion."
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