SEOUL: South Korea will offer an additional 80 billion won (US$57.7 million) in loans to help local businesses achieve carbon neutrality, the industry ministry said Wednesday. The funding is designed to support companies in establishing carbon-reduction facilities and investing in research and development projects related to carbon neutrality.
According to Yonhap News Agency, this latest financial support follows two previous rounds earlier this year, during which the government provided a combined 251.3 billion won in loans. The low-interest loans are set at 1.43 percent for small and medium-sized enterprises and 1.93 percent for conglomerates, making it easier for businesses to undertake carbon reduction initiatives.
The South Korean government also plans to prioritize industries expected to be affected by the European Union’s Carbon Border Adjustment Mechanism (CBAM). CBAM, which will be fully implemented at the start of 2026, imposes import charges equivalent to carbon emissions from production on goods
such as steel, cement, electricity, fertilizer, and aluminum. By offering these loans and support, the government aims to mitigate potential disruptions to local industries once CBAM is in full effect.