92.8% of South Korean small and medium-sized enterprises (SMEs) believe they cannot meet national greenhouse gas reduction targets within the designated timeframe. (Image courtesy of Pixabay)
SEOUL, Feb. 20 (Korea Bizwire) — A new survey has revealed that 92.8% of South Korean small and medium-sized enterprises (SMEs) believe they cannot meet national greenhouse gas reduction targets within the designated timeframe.
The Korea Federation of SMEs announced these findings on February 19, based on a survey of 500 manufacturing SMEs conducted last year. Among respondents, 50.2% said that while reduction is possible, meeting the deadline is not, while 42.6% viewed both the reduction targets and timeline as unattainable.
Even among companies already subject to mandatory emissions reduction requirements, 86% reported that meeting targets within the deadline would be impossible. The survey highlighted widespread difficulties among SMEs in addressing greenhouse gas reduction goals.
When asked why they haven’t developed carbon neutrality plans, companies cited lack of time to understand and review carbon neutrality measures (51.2%), insufficient funding and personnel (31.2%), and absence of proven technologies or equipment (23.2%). Additionally, 84.8% of respondents expressed concern about the financial burden of implementing carbon reduction measures.
The most desired support policies included funding for replacing outdated facilities (50.4%), support for energy-efficient equipment adoption (26.2%), and differential electricity rates for SMEs (22.6%). However, priorities varied significantly between firms that are required to reduce emissions and those that are exempt. Companies under emissions reduction requirements prioritized differential electricity rates (28%) and maintaining free emission allowance ratios (24%), while exempt companies emphasized facility replacement funding (68.7%) and energy-efficient equipment support (30.7%).
“While awareness of national greenhouse gas reduction targets has increased among SMEs, they lack the financial resources to implement necessary changes,” said Yang Chan-hoe, head of Innovation Growth at the Korea Federation of SMEs. He called for increased government support, particularly in subsidizing facility upgrades and implementing energy-efficient technologies.
Yang also emphasized the need for industry-specific support through cooperative associations, noting that individual SMEs face significant challenges in addressing these issues alone. “The private sector should aim for carbon neutrality throughout the supply chain through collaboration between large corporations and SMEs,” he added.
M. H. Lee (mhlee@koreabizwire.com)
