Government to Invest 184.3 Billion KRW in SME Carbon Neutrality... Support for 'Clean Factory' Establishment and More

Ministry of Industry Announces 'Carbon Neutrality Support Project for Small and Medium Enterprises'
Up to 10 Billion KRW Annual Loan Support for Carbon Neutrality R&D Companies

Banwol National Industrial Complex located in Ansan, Gyeonggi. The photo is unrelated to specific expressions in the article.
Photo by Asia Economy DB

[Asia Economy Sejong=Reporter Lee Junhyung] The government will invest 184.3 billion KRW this year to support small and medium-sized enterprises (SMEs) and mid-sized companies in achieving carbon neutrality.

On the 7th, the Ministry of Trade, Industry and Energy announced the 'SME and Mid-sized Company Carbon Neutrality Response Support Project.' The project budget is approximately 184.3 billion KRW. The project areas are divided into three categories: ▲Reduction for carbon neutrality implementation (31.6 billion KRW) ▲Industrial adaptation such as process transition in vulnerable areas (2.7 billion KRW) ▲Infrastructure establishment including financial support (150 billion KRW).

The area with the largest budget allocation is the infrastructure sector. 150 billion KRW has been allocated to the Carbon Neutral Transition Leading Project Loan Support. Through this project, the ministry selects companies actively conducting research and development (R&D) on facilities, technologies, or products necessary for carbon neutrality transition and provides long-term low-interest loans. The maximum loan support per business site is up to 10 billion KRW annually. The loan interest rate ranges from 1% to 2%, and the loan period can be set up to 10 years.

Overview of the Carbon Neutral Transition Leading Project Loan Support Program.
[Photo by Ministry of Trade, Industry and Energy]

In the reduction sector, 23.6 billion KRW will be used to support the establishment of clean factories in industrial complexes. This supports process improvements and the spread of eco-friendly facilities to reduce four major pollutants including greenhouse gases generated from production processes at SME and mid-sized company sites within industrial complexes. The maximum support amount per business site is 120 million KRW. Additionally, 6 billion KRW is allocated to the Carbon Neutral Leading Plant Construction Support Project, which aims to establish representative business sites that can drastically reduce carbon emissions. The maximum support amount per business site is 3 billion KRW. Furthermore, 2 billion KRW will be invested in the Clean Manufacturing Base Construction Project. This project targets small business sites with annual energy consumption below 2,000 tons of oil equivalent (TOE) and works with eight local government heads to discover and disseminate clean production technologies.

In the adaptation sector, 2.7 billion KRW has been allocated. Through the High Emission Industry Process Transition Support Project, customized consulting for companies, worker education and training, and regional process transition strategy planning will be provided in areas densely populated with high greenhouse gas emitting industries. Cooperation with public and private specialized institutions will also be supported to help SMEs and mid-sized companies in these regions transition their business structures to new industries based on carbon neutrality.

Overview of the Clean Factory Establishment Support Project in Industrial Complexes.
[Photo by Ministry of Trade, Industry and Energy]

A memorandum of understanding (MOU) ceremony was also held among related organizations to support the carbon neutrality transition of SMEs and mid-sized companies. The Korea Institute of Industrial Technology, Korea Credit Guarantee Fund, and Korea Industrial Complex Corporation signed an 'MOU for the Activation of Carbon Neutral Industrial Transition' to create a low-carbon industrial ecosystem. According to the agreement, the Korea Institute of Industrial Technology and Korea Industrial Complex Corporation will identify industries in need of financial support. The Korea Credit Guarantee Fund will establish a new climate response guarantee (tentative name) product and provide guarantees worth 500 billion KRW this year.

Meanwhile, the Ministry of Trade, Industry and Energy will hold explanatory sessions for the carbon neutrality response support project in eight regions including Gunsan and Gwangju from the 8th to the 11th. An online briefing session will be held on the 18th of this month.

Choi Damho, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, said, “To achieve carbon neutrality in the industrial sector, voluntary participation from not only large corporations but also SMEs and mid-sized companies is essential,” adding, “We will discover various support projects to resolve difficulties faced by SMEs and mid-sized companies in the process of implementing carbon neutrality.”

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