Monthly Meetings Held... Discussion Results Compiled for Related Measures Discussion and Announcement
On the 9th, officials were busy moving in the corridor of the Financial Services Commission at the Government Seoul Office in Jongno-gu, Seoul, where the financial authorities decided to include mortgage loans (Judaemae) in the 'debt refinancing' infrastructure scheduled to be launched in May by the end of the year. The financial authorities explained that they aim to reduce the interest burden on mortgage loans by establishing a debt refinancing platform that allows users to compare financial sector loan interest rates at a glance and switch loans easily. Photo by Dongju Yoon doso7@
The Financial Services Commission announced on the 9th that it held the first meeting of the 'Climate Task Force (TF)' together with associations, academia, research institutions, and related organizations.
The Climate TF is one of the three subcommittees (Population, Climate, Technology) of the Future Response Finance TF. The Future Response Finance TF was established under the Financial Services Commission's '2024 Major Work Promotion Plan' to discuss the future of finance related to changes caused by the climate crisis, population decline, and the emergence of new technologies. The establishment plan for the Future Response Finance TF was announced at the '2024 Financial Development Deliberation Committee Plenary Meeting,' and the 'Future Response Finance TF Inauguration Ceremony' was held last April.
In March, the Financial Services Commission announced the 'Expansion Plan for Financial Support to Respond to the Climate Crisis,' aiming to achieve '2050 Carbon Neutrality' and support corporate responses to the climate crisis by supplying KRW 420 trillion in policy finance by 2030. To expand investment in renewable energy facilities including solar and wind power, it plans to create a Future Energy Fund (KRW 9 trillion) through bank contributions and a Climate Technology Fund worth KRW 3 trillion based on bank contributions, announcing an investment plan of KRW 9 trillion to secure climate technology leadership.
The Climate TF operating this year will discuss detailed support directions to assist corporate responses to the climate crisis, as well as support measures for the financial sector's response to the climate crisis. Additionally, as the need arises across the financial sector for soundness management related to climate risks and for calculating financial emissions for ESG disclosure due to climate change, the TF will discuss ways to support appropriate responses by financial institutions.
Furthermore, to prevent green washing and activate private green fund supply, the TF will discuss applying the Korean-style Green Taxonomy (K-Taxonomy) to various financial products and plans to develop new financial products in response to climate change.
Yoo-yi Kwon, Director of the Industrial Finance Division at the Financial Services Commission, explained, "The Climate TF will hold monthly meetings based on the above topics to derive additional discussion subjects, and will synthesize discussions from the Population and Technology TFs to hold public seminars and discuss and announce related measures."
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