Gyeonggi-do, "Discovering and Investing in Eco-friendly and Low-carbon Companies"... Establishes 103 Billion Won 'Carbon Neutral Fund'

Establishment of Carbon Neutral Fund No.1... 300% of Provincial Investment to Be Invested in Local Companies

[Asia Economy Reporter La Youngcheol] Gyeonggi Province is establishing the "Gyeonggi-do Carbon Neutrality Fund No. 1" with a total scale of 103 billion KRW this year to invest in promising companies in the carbon neutrality sector.

The "Gyeonggi-do Carbon Neutrality Fund" is a policy fund created for the first time this year to proactively respond to the climate crisis by focusing on discovering and investing in promising small and venture companies with eco-friendly and low-carbon technologies, aiming to foster a carbon neutrality industrial ecosystem within the province.

Gyeonggi Province announced on the 19th that "the 'Gyeonggi-do Carbon Neutrality Fund' plans to identify and intensively invest in companies in the carbon neutrality sector with high growth potential starting this month."

The first fund was established by the province contributing 6 billion KRW and attracting 97 billion KRW from private capital and others. This is 3.4 times the initial target of 30 billion KRW, totaling 103 billion KRW, which is 73 billion KRW more than the target amount.

The fund operation period is until July 2030, and Hanwha Investment & Securities Co., Ltd. is in charge of management.

The province originally planned to gradually expand the fund size to more than 120 billion KRW over the next five years starting this year, but since the first fund's formation amount exceeded the target, it expects the possibility of forming a fund totaling more than 200 billion KRW by 2026.

By mandating that 300% of the contributed amount be invested in companies located in Gyeonggi Province, the province aims to advance the carbon neutrality industry, promote company growth, and activate employment within the province.

Earlier, on the 15th, the province held the general meeting for the formation of the "Gyeonggi-do Carbon Neutrality Fund No. 1" with the Gyeonggi-do Economic Science Promotion Agency, Hanwha Investment & Securities Co., Ltd., and contributors to establish the fund and discuss company discovery and investment strategies.

Additionally, last month, the passage of the "Gyeonggi-do Carbon Neutrality and Green Growth Basic Ordinance" in the plenary session laid the institutional foundation for realizing carbon neutrality.

Jung Doyoung, Director of Economic Planning, said, "With the establishment of the 'Gyeonggi-do Carbon Neutrality Fund No. 1,' we have successfully taken the first step toward practicing Gyeonggi-do-style green finance," adding, "Going forward, Gyeonggi Province will play a leading role in creating a carbon neutrality industrial ecosystem."

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