Government to Invest 100 Billion Won Overseas in 'Green Fund' This Year... "Accelerating Decarbonization Transition"

The government announced on January 8 that it will promote a new investment of approximately 100 billion won this year to support domestic companies entering overseas green industries, in line with its green transition strategy.

The Ministry of Climate, Energy and Environment will carry out a new investment of 100 billion won in green funds this year, including 60 billion won in government contributions and private investment.

The green fund will be established with a total of 509.2 billion won by 2029, starting with the creation of a parent fund in October 2024, which will combine approximately 300.1 billion won in government contributions and 209.1 billion won in private investment. The fund will consist of two sub blind funds (417.2 billion won) and a sub project fund (92 billion won), and will be invested in new overseas projects in stages.

Yonhap News Agency

This fund is characterized as the only policy fund in Korea specialized in overseas project investment in green industries such as carbon reduction, energy transition, circular economy, and water industry. In addition to financial support through equity investment and loans, it is structured to link domestic companies’ supply of equipment, engineering, procurement and construction (EPC), and operation and maintenance (O&M) participation through negotiations with overseas clients.

In addition, the Ministry of Climate, Energy and Environment plans to gradually complete the investment system over two years following October 2024, and had approved a total investment of 146.2 billion won in five new overseas projects as of the end of last year. As a result, overseas orders and exports by domestic companies are expected to reach approximately 4.9 trillion won, and more than 100 small and medium-sized enterprises are also expected to participate in the global green industry value chain alongside large corporations.

Jung Eunhae, Director-General for International Cooperation at the Ministry of Climate, Energy and Environment, said, "The green fund will serve as a key policy tool for the K-GX strategy, supporting both the decarbonization transition of domestic industries and their expansion overseas."