[War Supplementary Budget] Climate Ministry Allocates 525 Billion Won... Strengthening Energy Transition and Public Welfare Stabilization

Financial Support for Renewables Increased by 220.5 Billion Won
Solar Supply Support: 62.4 Billion Won, ESS: 58.8 Billion Won

The Ministry of Climate, Energy and Environment has allocated an additional supplementary budget totaling 524.5 billion won, focusing on expanding renewable energy and supporting vulnerable groups.

On March 31, the Ministry announced that the Cabinet had approved the 2026 supplementary budget bill containing these measures. This supplementary budget aims to ease the burden of energy costs caused by rising oil prices and to accelerate the transition to a renewable energy-centered system.

A total of approximately 340 billion won will be invested in the renewable energy sector. Financial support for renewable energy will be increased by 220.5 billion won to provide long-term, low-interest funding for the installation of solar and wind power generation facilities. The budget for supporting the rollout of solar power in homes, schools, and traditional markets will also be increased by 62.4 billion won. Additionally, 58.8 billion won will be newly allocated to build energy storage systems (ESS) for the distribution network, aiming to improve issues such as output control and connection delays.

The Ministry will also promote the electrification of heating. For residential heating electrification projects, 5.6 billion won will be allocated, and 1.3 billion won will be set aside to support electrification in social welfare facilities, shifting away from a heating structure centered on fossil fuels.

Kim Sung-hwan, Minister of Climate, Energy and Environment, is announcing energy-saving measures in response to the Middle East situation at the Government Seoul Office in Jongno-gu, Seoul, on the 24th. March 24, 2026 Photo by Jo Yongjun

In the transportation sector, the Ministry will accelerate the expansion of electric vehicles. An additional 90 billion won will be allocated to support the purchase of electric cargo trucks, increasing the supply supported by subsidies and simultaneously promoting greenhouse gas reduction and domestic demand activation.

Support for vulnerable groups will also be strengthened. The budget for energy vouchers will be set at 10.2 billion won, and 12.8 billion won will be allocated to improve energy efficiency for low-income households, reducing their energy cost burden. In particular, households using kerosene or LPG will receive additional payments to cover increased fuel costs. Furthermore, 36.3 billion won will be invested in supporting the operation of self-generation facilities in island regions, reducing fuel cost burdens and enhancing the stability of power supply.

In addition, 1.9 billion won will be allocated to support youth green start-ups, helping 20 prospective and early-stage start-up companies, and 2.3 billion won will be invested in supporting industrial and job transitions to mitigate employment shocks caused by structural changes. The CCU (Carbon Capture and Utilization) megaproject (R&D), aimed at securing core carbon-neutral technologies, will receive 22.4 billion won.

The Ministry expects that this supplementary budget will ease the public’s burden from rising energy prices and serve as a catalyst for promoting a shift toward an energy structure centered on renewable energy and electrification.

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