South Korea Pledges US$338 Billion until 2030 to Combat Climate Challenges

The South Korean government and South Korean banks have pledged to jointly invest US$338 billion until 2030 to tackle the climate crisis, in a move that aligns with the country’s intensified efforts to achieve carbon neutrality by 2050.

“This unprecedented climate crisis we face today demands action not only to enhance our companies’ competitiveness but also for the generations to come,” said Kim Joo-hyun, head of the South Korean Financial Services Commission, adding, “Through this collaborative effort, we are taking a meaningful first step in tackling climate challenges.”

Kim made the remarks during a meeting in Seoul this week attended by government officials including Environment Minister Han Hwa-jin and the CEOs of major banks.

State-run banks and funds, such as the Korea Development Bank (KDB) and the Export-Import Bank, will jointly secure an average of KRW60 trillion annually, marking a 67% increase from the previous five years.

Additionally, the KDB and the nation’s five major commercial banks, KB Kookmin, Shinhan, Woori, Hana and NongHyup, will establish a KRW9 trillion “future energy fund” to finance the construction of new green energy facilities. State-run financial institutions will also extend subordinated loans worth KRW14 trillion won.

According to a report from The Korea Herald this initiative is estimated to reduce the nation’s greenhouse gas emissions by 85.97 million tons by 2030, representing 29.5% of the government’s reduction target over the next seven years.