Next Year, 474.4 Billion KRW Invested to Develop Carbon Neutrality Leading Model, Supporting 2,500 SMEs

Discovery of 100 Promising Green New Deal Companies, Fostering 14 Green, Preliminary, and Baby Unicorns by 2025
Ministry of SMEs and Startups Announces Support Measures for Carbon Neutrality Response in SMEs and Ventures

Summary of Support Measures for Carbon Neutrality Response of Small and Medium Venture Enterprises.
[Graphic=Ministry of SMEs and Startups]

[Asia Economy Reporter Kim Jong-hwa] The government will invest 474.4 billion KRW in the carbon neutrality budget next year to support about 2,500 small and medium-sized enterprises (SMEs) in developing carbon neutrality leading models. Additionally, it plans to discover 100 "Green New Deal Promising Companies" that can lead the creation of an ecosystem in the green sector and nurture 1 Green Unicorn, 3 Pre-Unicorns, and 10 Baby Unicorns by 2025.

On the 15th, the Ministry of SMEs and Startups announced the "SME Carbon Neutrality Response Support Plan," focusing on these details.

Carbon Neutrality: An Opportunity for Structural Improvement, Not a Crisis

The Ministry of SMEs and Startups aims to proactively improve corporate structures rather than view carbon neutrality as a crisis factor and to seize new green industry opportunities by establishing four main strategies: △supporting low-carbon transition for SMEs in high-carbon industries △fostering innovative ventures and startups in the green sector △promoting the spread of carbon-neutral management across SMEs △establishing governance for SME carbon neutrality support.

To support the low-carbon transition of SMEs in high-carbon industries, four detailed tasks will be implemented: ▲developing leading models ▲low-carbon packages ▲process innovation ▲business transformation support. To foster innovative ventures and startups in the green sector, five tasks will be pursued: ▲discovering promising companies ▲venture investment ▲supporting green research and development (R&D) ▲commercializing green innovation technologies through regulatory free zones ▲creating startup hubs.

To promote the spread of carbon-neutral management across SMEs, four tasks will be carried out: ▲restructuring SME support projects ▲building innovation hubs for regional expansion ▲supporting green finance ▲promoting awareness and dissemination. To establish governance for SME carbon neutrality support, three tasks will be implemented: ▲enacting special laws ▲establishing statistics and information systems ▲building a private and regional-centered promotion system, totaling 16 detailed tasks.

5,400 SMEs to Practice Carbon Neutrality by 2030

The Ministry will first invest 474.4 billion KRW next year to support about 2,500 SMEs in developing carbon neutrality leading models, focusing on high-carbon industries. The support target will expand by 10% annually, enabling 5,400 companies to practice carbon-neutral management by 2030.

Up to 2 billion KRW per company over two years will be invested to develop exemplary cases of low-carbon new technologies applicable commonly within 10 high-carbon SME industries, which will then be disseminated and expanded within those industries. By 2025, a customized consulting-included low-carbon management transition support package will be provided to 4,000 small manufacturing companies with high carbon reduction potential.

This year, 27.1 billion KRW was supported for 271 companies, and next year, 17.2 billion KRW will be provided to 500 companies. Instead of a single technology needed for carbon neutrality, low-carbon innovative technologies required for representative processes by industry will be developed in package form, serving as leading models indicating the direction of low-carbonization by industry.

14 Green, Pre-, and Baby Unicorns to be Nurtured in Four Years

One hundred "Green New Deal Promising Companies" that can lead the creation of a green ecosystem will be discovered and provided with concentrated R&D and commercialization funds (up to 3 years, maximum 3 billion KRW) to nurture them into Green Unicorns. Through this, by 2025, the plan is to discover and nurture 1 Green Unicorn, 3 Pre-Unicorns, and 10 Baby Unicorns.

Efforts will be made to encourage SMEs to recognize carbon neutrality as an immediate task, and support projects operated sporadically by various institutions will be comprehensively linked with customized policies based on level diagnosis results and company conditions to enhance policy efficiency and effectiveness.

Funding for net-zero promising companies, which are SMEs pursuing low-carbon manufacturing transition and green technology commercialization, will be expanded from 20 billion KRW this year to 120 billion KRW next year, and customized diagnosis and consulting such as carbon neutrality level diagnosis will be newly introduced. Additionally, guarantee products supporting carbon-neutral leading SMEs will be planned using carbon value evaluation models, and climate response guarantees worth 1 trillion KRW will be provided next year by the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation.

Expected Organization Chart of the Carbon Neutrality Committee for Small and Medium Enterprises. [Image=Ministry of SMEs and Startups]

Improving Carbon Neutrality Awareness and Training Experts

To improve the awareness of carbon neutrality among SME employees and executives and to train carbon neutrality experts, three contract departments will be newly established, and carbon neutrality training courses (200 people) and awareness improvement programs (500 people) will be operated. Educational and promotional content such as ESG (Environmental, Social, Governance) management manuals that SMEs can benchmark will be produced and distributed, and an online self-diagnosis system will be developed to allow SMEs to self-assess.

To establish a basis for focused nurturing of carbon-neutral leading companies and concentrated regions, the enactment of the "Special Act on Promoting Innovation in SME Decarbonized Management" will be pursued, specifying support systems such as ▲support for individual SME transitions ▲joint transition support for large and small companies within supply chains ▲priority support for multi-emission sectors ▲fostering specialized companies.

To build a private and regional-centered SME carbon neutrality promotion system, a "SME Carbon Neutrality Support Committee" involving private (related organizations) and regional (Technoparks, etc.) participants will be established under the SME ESG Preparation Public-Private Council, and a dedicated department within the Ministry of SMEs and Startups will be set up to ensure the effectiveness and sustainability of SME carbon neutrality policies.

Minister Kwon Chil-seung of the Ministry of SMEs and Startups said, "Many SMEs have felt the need to respond to carbon neutrality but did not know what or how to do it, so they could not take action. Through this plan, we will do our best to make this an opportunity for our SMEs to take a leap forward."

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