Deputy Prime Minister Choi Sang-mok: "We Will Raise 23 Trillion Won in Venture Capital for the Clean Energy Sector"

Attendance at the G20 Finance Ministers Meeting on the 17th-18th

Choi Sang-mok, Deputy Prime Minister for Economy and Minister of Economy and Finance, announced at the G20 Finance Ministers' Meeting that 23 trillion won in capital will be raised in the clean energy sector to respond to the climate crisis.

Deputy Prime Minister Choi attended the 2nd G20 Finance Ministers' Meeting held on the 17th and 18th (local time) in Washington D.C., USA. The meeting was attended by finance ministers and central bank governors from G20 member countries and invited nations, as well as representatives from major international financial institutions such as the International Monetary Fund (IMF) and the World Bank (WB). The meeting was divided into two sessions: "Sustainable Finance" on the first day and "International Financial System" on the second day.

Deputy Prime Minister Choi Sang-mok held a meeting with Giancarlo Giorgetti, Italy's Minister of Finance and the chair country of this year's G7, in Washington D.C. on the 17th (local time).

In the first session, which discussed financing measures to address climate change, Deputy Prime Minister Choi emphasized the need to actively utilize private capital when securing climate funds. He stated, "It is necessary to organize private investment systems and find ways to share risks with the private sector," adding, "Korea will raise 23 trillion won in venture capital in the clean energy sector to share risks with the private sector." Venture capital refers to funds needed to support projects that have relatively high investment risks but offer higher profitability than typical businesses.

He also reaffirmed the commitment to actively expand support for multilateral climate funds. This follows President Yoon Suk-yeol's declaration at last year's G20 meeting to contribute 300 million dollars (approximately 414 billion won) to the Green Climate Fund (GCF) and his promise of continued support. The Green Climate Fund is a UN-affiliated international financial institution established to assist developing countries in coping with climate change damage. Deputy Prime Minister Choi also emphasized support for strengthening developing countries' carbon emission reduction capabilities and closing knowledge gaps through the expansion of initiatives such as the Carbon Free Alliance. The Carbon Free Alliance is an organization promoting the Carbon Free Energy (CFE) initiative proposed by President Yoon in his keynote speech at the UN General Assembly last September.

In the second session discussing the reform of the international financial system, he stressed the importance of the role of multilateral development banks and urged cooperation among G20 countries to establish a roadmap for reforming multilateral banks. He particularly requested the prompt implementation of debt relief for vulnerable countries and the allocation of IMF Special Drawing Rights (SDR). He also introduced Korea's efforts to improve market structures, such as the value-up program and the extension of foreign exchange market opening hours.

Meanwhile, on the 17th, Deputy Prime Minister Choi met with Giancarlo Giorgetti, Italy’s Finance Minister and chair of this year’s G7. Minister Giorgetti delivered an invitation to Deputy Prime Minister Choi for the upcoming G7 Finance Ministers' Meeting scheduled to be held from the 23rd to the 25th of next month in Stresa, Italy, and explained the meeting agenda. In response, Deputy Prime Minister Choi promised Korea’s active cooperation.