170 Billion Loan Support for Essential Carbon Neutral 'Zero Energy Buildings'

Mandatory 'Zero Energy' Goal for Buildings Over 500㎡ Total Floor Area by 2030
17 Billion Won Funding Support Next Year... Expansion of Zero Energy Building Certification Bodies

On the 24th, LG Electronics announced that 'LG ThinQ Home' has become the first zero-energy building in South Korea to receive the highest Level 1 certification. To achieve Level 1, the energy self-sufficiency rate must be 100% or higher. LG ThinQ Home is a building established by LG Electronics last September in the Pangyo New Town, Gyeonggi Province. (Image source=Yonhap News)

[Asia Economy Reporter Moon Chaeseok] To achieve the policy goal of making buildings of about 150 pyeong (approximately 496 square meters) energy self-sufficient (the ratio of energy production to consumption) at 100% within 10 years, the government will provide approximately 17 billion KRW in loan support next year. The expansion of 'Zero Energy Buildings' is regarded as a sure way to reduce energy waste and induce carbon reduction.

On the 28th, the Ministry of Trade, Industry and Energy and the Ministry of Land, Infrastructure and Transport announced plans to revise laws related to Zero Energy Buildings and implement them starting next year. The government has been operating the Zero Energy Building certification system since 2017. This system grants a first-grade certification to buildings with an energy self-sufficiency rate of 100% or higher.

A government official said, "The Ministry of Industry and the Ministry of Land plan to revise related laws to implement cooperative measures within next year," adding, "We plan to explore ways to develop jointly operated systems such as the 'Zero Energy Building Certification System' and the 'Building Energy Efficiency Grade Certification System.'"

The Ministry of Industry and the Ministry of Land held the 'Building Energy Innovation Solution Task Force (TF)' three times this year and derived four cooperative measures.

The measures include ▲ promotion of high-efficiency energy equipment for buildings ▲ inducing the spread of Zero Energy Buildings through activation of financial support (such as loans) ▲ expansion of the application scope of building energy efficiency grades and Zero Energy Building certification ▲ expansion of Zero Energy Building certification agencies.

To increase investment support for Zero Energy Buildings, up to 15 billion KRW of 'Energy Saving Facility Installation Loans' will be provided next year. The loan conditions include a 3-year grace period and a 5-year installment repayment. Additionally, up to 2 billion KRW of 'New Energy Industry Financial Support' will be promoted next year, with a 3-year grace period and a 7-year installment repayment condition.

Furthermore, the minimum area requirement for Zero Energy Building certification will be removed to increase public participation. Currently, only buildings with cooling and heating areas of 500㎡ (151.25 pyeong) or more can receive certification, excluding single-family houses, multi-family housing, and office facilities. These criteria will be eliminated going forward.

Source: Ministry of Trade, Industry and Energy

A mandatory roadmap to make private and public buildings with a total floor area of 500㎡ or more 'Zero Energy' by 2030 will be implemented starting this year, and the number of certifications is expected to increase significantly next year. The government plans to designate additional certification agencies to shorten the certification period.

Currently, the Korea Energy Agency operates and manages the certification. The number of certifications surged from 81 cases between 2017 and 2019 to 426 cases from January to November this year.

Kim Sang-moon, Director of Building Policy at the Ministry of Land, Infrastructure and Transport, said, "The two ministries will develop the building energy performance improvement system jointly operated by them to prepare for the mandatory Zero Energy Building requirement for the private sector (buildings over 1000㎡) by 2025 without delay and will take a leading role in realizing the 2050 carbon neutrality goal."

Kim Jeong-il, Director of Energy Innovation Policy at the Ministry of Trade, Industry and Energy, said, "Based on the energy efficiency improvement policies promoted by the Ministry of Industry, including expanding the equipment efficiency management system closely related to people's lives in buildings, we will actively cooperate with the Ministry of Land to improve building efficiency."

This content was produced with the assistance of AI translation services.