The government will provide guarantees exceeding 1 trillion won to companies that reduce carbon emissions. Green technology companies will receive guarantees worth up to 300 billion won along with benefits such as reduced guarantee fees.
On the 5th, the government held an Economic Ministers' Meeting at the government complex in Jongno-gu, Seoul, and announced the "Green Industry Guarantee Support Plan for Transition to a Low-Carbon Economy," which includes these measures. According to the plan, the government will supply guarantees worth up to 1.2 trillion won this year to companies that reduce carbon emissions. Eligible companies include those that have transitioned to a low-carbon business structure through process improvements, contributed to external carbon reduction through technological innovation, or operate in the renewable energy power generation industry.
Support will vary depending on the size of the company and the level of green technology secured. The government will directly identify companies wishing to reduce carbon and select them as "Green Unicorns." Step-by-step consulting will be provided, and preferential greenhouse gas reduction funds will be offered. If a company is judged to have high growth potential, it will receive guarantee benefits of up to 20 billion won over three years. Linked investments of up to 3 billion won are possible, and non-financial support such as technology and patent consulting will also be provided. Leading companies that have already secured excellent green technology can receive guarantees of up to 50 billion won depending on their growth.
Companies engaged in the environmental industry can enjoy guarantee benefits worth 280 billion won this year. The strategy is to support small and strong companies with excellent technology but difficulty in raising funds from financial institutions. The maximum guarantee ratio is 95%, which is 10 percentage points higher than general guarantees. Guarantee fees will be reduced by 0.4 percentage points, and for partner banks, an additional 0.7 percentage points will be supported for two years. Considering that the average guarantee fee rate for companies is 1.1 percentage points, this effectively means the state provides guarantees free of charge.
Additionally, to help guaranteed companies expand overseas, the government will support local verification and market development. It will invest 6 billion won to support overseas expansion of companies with high export growth potential and spend 7.8 billion won to commercialize green technology abroad.
Kim Wan-seop, Minister of Environment, stated, "To overcome the climate crisis and protectionist trade barriers, there is a growing demand for continuous support for disruptive innovative technologies with economic viability, namely climate tech," and explained, "Through guarantee support, an annual sales growth of 14%, an 8% increase in employment, and a carbon reduction effect equivalent to 0.25% of the annual greenhouse gas emissions in the industrial sector are expected."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
