Chungnam Establishes a 10 Billion Won Fund to Prepare for Coal Power Plant Closures

[Asia Economy (Hongseong) Reporter Jeong Il-woong] Chungnam Province is creating a fund of 10 billion KRW to prepare for the early and phased closure of coal-fired power plants, aiming to promote employment stability and industrial restructuring.

On the 8th, the province announced that it signed a business agreement on Chungnam's 'Just Transition Fund Creation' to respond to the phased abolition of coal-fired power plants with Boryeong City, Seocheon County, Taean County, Dangjin City, Korea Midland Power, Korea Western Power, and Korea East-West Power.

The fund creation is being promoted as part of a comprehensive plan announced by the province ahead of the closure of Boryeong Power Plant Units 1 and 2 at the end of December last year.

Earlier, in February, the province enacted and promulgated an ordinance on the establishment and operation of the Just Transition Fund, laying the legal foundation for raising funds in preparation for the closure of coal-fired power plants.

The fund is expected to be created on a scale of 10 billion KRW this year, 15 billion KRW next year, and 25 billion KRW annually from 2023 to 2025, totaling 100 billion KRW. The contribution ratio is 30% from the province, and 10% each from the cities/counties and the three power companies.

The province plans to use the created fund for employment succession, reemployment training, job placement, and career support related to the closure of coal-fired power plants.

It will also support attracting companies to energy transition target areas, supporting small business owners, implementing resident welfare projects, and developing resident programs for power facility dismantling and site restoration and utilization.

The fund operation will be managed by the province and is scheduled to begin next month.

Yang Seung-jo, Governor of Chungnam Province, said, "While coal-fired power has contributed to the local economy, it has also threatened the regional environment and residents' health due to fine dust and greenhouse gas emissions. As a national energy supplier and a driving force for regional development, we must not neglect the local residents who have been with us."

He added, "We will minimize the economic shock caused by the closure of coal-fired power plants and reduce side effects to complete a more just energy transition and regional industrial restructuring."

Meanwhile, a total of 58 thermal power plants are currently operating in South Korea, with 28 located in Chungnam.

Among the thermal power plants operated in Chungnam, Boryeong Power Plant Units 1 and 2 were closed at the end of last year according to the government's 9th Basic Plan for Electricity Supply and Demand. In 2025, four units including two at Boryeong Power Plant and two at Taean Power Plant will be closed; in 2028, one unit at Taean Power Plant; in 2029, three units including two at Dangjin Power Plant and one at Taean Power Plant; in 2030, two units at Dangjin Power Plant; and in 2032, two units at Taean Power Plant will be phased out sequentially.

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