This photo, provided by South Korea’s finance ministry, shows Finance Minister Choi Sang-mok (R) shaking hands with his Italian counterpart, Giancarlo Giorgetti, ahead of their meeting in Washington on April 17, 2024. (Image courtesy of Yonhap)
SEOUL, Apr. 19 (Korea Bizwire) — South Korea will create venture capital funds of 23 trillion won (US$16.57 billion) in the clean energy fields to promote investment in green growth, the top economic policymaker has said.
Finance Minister Choi Sang-mok announced the plan during a meeting of finance ministers and central bank deputies of the Group of 20 nations held in Washington on Wednesday and Thursday (U.S. time), according to the Ministry of Economy and Finance.
The funds will be designed to support and encourage private entities’ investment in green technology development and other projects in the clean energy sector, as governments should motivate private companies to raise the necessary financial resources for dealing with climate challenges by giving them financial incentives, Choi said during a G-20 session.
Choi also stressed South Korea’s commitment to the continued contribution to multilateral climate funds. Last year, the Seoul government pledged an additional $300 million to the Green Climate Fund.
During a separate session on the global financial system, Choi called for policy coordination between G-20 nations to minimize possible negative economic impacts of geopolitical uncertainties and interest rate differentials between major economies.
He also stressed the importance of the role of Multilateral Development Banks (MDBs), and urged the G-20 nations to work together to draw up a road map for their reform.
MDBs, which include the World Bank, Asian Development Bank and Inter-American Development Bank, provide financial and technical support to developing countries to help them strengthen economic management and reduce poverty.
On the sidelines of the G-20 meeting, Choi held separate talks with his Italian counterpart, Giancarlo Giorgetti, in Washington, during which Giorgetti officially invited Choi to the upcoming G-7 Finance Ministers’ Meeting slated for May in Italy and Choi vowed active cooperation, the ministry said.
(Yonhap)
