Assemblyman Min Hyung-bae: "Declaration of Coal Phase-Out Finance by Financial Groups, Will Accelerate with Legislation"

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[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] Min Hyung-bae, a member of the National Assembly (Democratic Party of Korea·Gwangju Gwangsan-eul), voiced support for the financial groups' successive declarations of coal divestment finance.

On the 13th, Rep. Min issued a statement saying, "We will accelerate the passage of the Green New Deal Basic Act, the Special Act on the Promotion of Green Finance, and the four coal divestment laws."

Rep. Min said, "Samsung Group financial companies such as Samsung Life Insurance and Samsung Fire & Marine Insurance declared coal divestment finance, including the suspension of investments related to coal-fired power plants, the day before," adding, "Over the past 12 years, the scale of coal power financing provided by our financial institutions domestically and internationally has reached 60 trillion won."

He continued, "Earlier in September, KB Financial Group, ranked second in coal financing, also declared coal divestment finance for the first time in Korea," explaining, "Following the leading coal divestment finance declarations by the first and second largest financial groups, other financial groups are also considering participation."

He added, "The transition to green finance is an unstoppable trend of the times. President-elect Joe Biden of the United States has declared carbon neutrality by 2050 and promised to invest 5 trillion dollars over the next decade in eco-friendly and renewable energy sectors," emphasizing, "Not only Europe, a leader in green finance, but also the United States, which had been lukewarm in responding to the climate crisis, has shown strong commitment to green finance."

He also explained the legislative proposals for the transition to a decarbonized society, including the 'Green New Deal Basic Act' and the 'Special Act on the Promotion of Green Finance.'

The 'Basic Act on the Implementation of a Decarbonized Society in Response to the Climate Crisis,' proposed by Rep. Lee So-young, contains policies on coal phase-out. Article 35, 'Basic Plan for Energy Policy,' and Article 41, 'Energy Transition Policy,' specify the phased withdrawal of fossil fuels such as oil and coal.

The 'Special Act on the Promotion of Green Finance in Response to the Climate Crisis' includes provisions to reduce financial support for coal industries. Article 3, Clause 4 of this law declares the 'Basic Principle for the Promotion of Green Finance,' stating that financial support will be gradually reduced for economic activities that fall outside the green classification system.

Additionally, Kim Sung-hwan, head of the Green New Deal division of the K-New Deal Committee, along with Democratic Party lawmakers Woo Won-shik, Min Hyung-bae, and Lee So-young, proposed four laws in July to ban overseas coal power investments (Korea Export-Import Bank Act, Korea Electric Power Corporation Act, Korea Development Bank Act, Trade Insurance Act).

Rep. Min said, "If these two laws are passed, the phase-out of coal-fired power projects through government policy and the reduction of financial support by financial companies can be institutionalized," adding, "We ask the government, including the Ministry of Trade, Industry and Energy, the Ministry of Economy and Finance, the Financial Services Commission, and state-run enterprises, to join the coal divestment policy and actively cooperate in passing the Green New Deal Basic Act, the Special Act on the Promotion of Green Finance, and the four coal divestment laws."

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