Korea to invest to foster 10 climate-related unicorns

Prime Minister Han Duck-soo speaks during the fourth meeting of the Presidential Commission on Carbon Neutrality and Green Growth held Thursday at the government complex in central Seoul. [YONHAP]

Korea will invest 145 trillion won ($112 billion) in public and private funds to ramp up its climate tech capabilities by 2030, the Ministry of Trade, Industry and Energy said Thursday.

The ambitious program aims to foster 10 unicorn startups and 100,000 jobs in climate-related sectors while achieving 100 trillion won in exports by 2030.

The term "unicorn" refers to privately held startups with a valuation of over $1 billion.

The plan was approved Thursday during the fourth meeting of the Presidential Commission on Carbon Neutrality and Green Growth held at the government complex in central Seoul, chaired by Prime Minister Han Duck-soo.

Climate tech refers to a range of technologies, services and products aimed at carbon reduction and climate adaptation, according to the Industry Ministry.

The ministry aims to establish a government-backed “policy fund” worth over 400 billion won and attract an additional 200 billion won from the private sector.

Climate finance — the financing of projects to mitigate climate change — will be expanded to up to 8 trillion won by 2030. The government will also work with the five major financial groups to create a 135-trillion-won investment program, which includes bond and loan issuances and project financing.

Moreover, the ministry plans to launch a 1-trillion-won research and development (R&D) program that will cover various stages of technological development from research and demonstration to marketing.

To boost climate tech export, the public sector will drive demand in the early phase through public procurements and government-led offset trade deals, and also provide administrative and R&D support for the overseas expansion of local businesses.

During the Thursday meeting, the carbon neutrality commission also approved a climate adaptation plan to bolster the country’s capabilities in climate response.

The initiative involves developing climate maps and advanced weather alert systems as well as infrastructure reform.

An integrated platform will be set up to provide map-based information on climate situations and possible dangers.

Furthermore, the government will build and expand infrastructure to better prevent climate-related disasters, such as underground rain-tunnel networks and drains.

The Yoon Suk Yeol administration finalized its long-term carbon reduction plan in April, with the aim of reducing carbon emissions by 40 percent from 2018 levels by 2030. The target figure, which was initially set in 2021 under the Moon Jae-in administration, remained the same, but the reduction target for industrial carbon emissions was lowered from 14.5 percent to 11.4 percent while the reduction goal for the power generation segment was raised from 44.4 percent to 45.9 percent.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]