South Korea launches K-GX strategy to mobilize $747 billion over ten years

South Korea's government announced the Korean Green Transformation Strategy on Oct. 8, a ten-year plan to mobilize 1,000 trillion won, or $747 billion, ESG Today reported. The stated objective is to decouple economic growth from carbon emissions while protecting the country's industrial competitiveness.

Government investment from state budgets accounts for 200 trillion won, state-backed climate finance 570 trillion won and expected private-sector projects the remaining 230 trillion won. The budget money is earmarked for green infrastructure, research and development and public-sector transition initiatives; the climate finance takes the form of low-interest loans, green bonds and credit guarantees; the private projects are to be supported by regulatory incentives and public-private partnership frameworks.

The strategy names steel, petrochemicals and refining, cement, and semiconductors and displays as priority industries for decarbonization. On the power side it targets 100 GW of domestic renewable energy infrastructure, with an emphasis on offshore wind and utility-scale solar, plus grid modernization.

For transport, the plan targets zero-emission vehicles at more than 70% of new vehicle sales by 2035. It also phases out tax subsidies for internal combustion engines and builds out ultra-fast charging networks.

In a statement announcing the launch, the Ministry of Climate, Energy and Environment said the framework guarantees that South Korea “will firmly adhere to its global carbon neutrality milestones while actively building domestic green jobs and securing the next generation of energy self-reliance.”

ESG Capital Daily reported on Oct. 7 that the plan links climate finance to emissions cuts. Its report did not specify how the 570 trillion won of state-backed finance is split among loans, bonds and guarantees, or how the total will be distributed across the ten-year window.