[2022 National Audit] Budget Cut Despite Manufacturing SMEs Not Ready for Carbon Neutrality

Budget Cuts for 6 out of 16 Major Projects Supporting Mid-term Carbon Neutrality Response

Assemblyman Kim Jeong-ho

[Asia Economy Reporter Kim Cheol-hyun] During the National Assembly audit of the Ministry of SMEs and Startups, concerns were raised that the budget for major projects under the 'Support Measures for Carbon Neutrality Response of Small and Medium Enterprises' was cut, resulting in inadequate government support for manufacturing SMEs vulnerable to carbon neutrality response preparation.

According to Kim Jeong-ho, a member of the National Assembly's Industry, Trade, Energy, SMEs and Startups Committee from the Democratic Party of Korea, an analysis of the 2023 government budget plan for the 'Support Measures for Carbon Neutrality Response of Small and Medium Enterprises' established by the Ministry of SMEs and Startups showed that out of 16 projects, 6 projects had reduced budgets compared to the previous year, and 6 projects were cut compared to the ministry's requested amount.

The project with the largest budget cut compared to the previous year was the 'Green New Deal Promising Companies 100,' which was reduced by 8.5 billion KRW. The 'SME Innovation Voucher (Carbon Neutral Management Innovation Voucher)' project was also cut by 5.4 billion KRW. The project with the largest cut compared to the ministry's requested amount was the 'SME Carbon Neutral Transition Support' project, which was reduced by 10.1 billion KRW. The 'Smart Factory Construction and Advancement Project' was also cut by 7 billion KRW, Kim pointed out.

According to a survey by the Korea Federation of SMEs, while 48.6% of manufacturing SMEs are aware of carbon neutrality, only 13.9% have response plans, meaning 86.1% are unprepared for carbon neutrality.

Kim stated, "Government support for technology development, facility improvement, and workforce training is urgently needed for the major transition of SMEs, which lack response strategies and preparation compared to large corporations, to a low-carbon industrial structure, but damage is expected." He criticized, "If the government views carbon neutrality politically, it shows a lack of awareness of the era of major transformation in response to the climate crisis."

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