Solar panels at the Samcheonpo power plant in southeast South Korea. (image: Korea South-East Power Co.)
SEOUL, Dec. 16 (Korea Bizwire) — The government plans to subsidize 2,500 small and medium-sized firms to achieve carbon neutrality starting next year, and continue to expand support by 10 percent every following year.
The Ministry of SMEs and Startups announced the new initiative on Wednesday, which includes investing 474.4 billion won (US$400 million) next year to help 2,500 small and medium-sized enterprises become carbon neutral.
The government will then expand support by 10 percent every subsequent year to subsidize as many as 5,400 companies by 2030.
The government also plans to select innovative ventures and startups in the green sector with the goal of raising one unicorn company by 2025, three preparatory unicorn enterprises (valued between 100 billion and 1 trillion won), and 10 baby unicorn companies (valued at less than 100 billion won).
As such, the government plans to select 100 hopeful business candidates for the ‘Green New Deal’ next year to subsidize R&D and business development.
In addition, the government also plans to select 20 regulation-free special zones for carbon neutrality by 2025 to expedite the development of low carbon, eco-friendly technology.
The government will also come up with sureties to support enterprises leading the efforts for carbon neutrality, offering a climate change guaranty of 1 trillion won through the Korea Credit Guarantee Fund and Korea Technology Finance Corp.
Companies will also get government help to transition from high-carbon to low-carbon emissions.
H. M. Kang (hmkang@koreabizwire.com)
