S. Korea to expand support for green growth in developing countries

SEOUL, Oct. 6 — South Korea's government said Tuesday that it will expand financial help to bolster eco-friendly business activities in developing countries, a move aimed at enhancing global efforts to tackle climate change while providing new business opportunities for local companies in overseas markets.

According to the Ministry of Strategy and Finance, the government will increase loans for green industries sought by developing countries over the next four years to 1.7 trillion won (US$ 1.45 billion) from its initially planned 1.2 trillion won.

The loans will be extended from the Economic Development Cooperation Fund (EDCF) that the government has been operating over the past two decades to help developing countries, it added.

Besides the increased loan provision, lending conditions will also be eased by offering lowered interest rates, especially for the solar, wind and bio sectors that are deemed to have high potential but require a significant amount of entry-level investment, the ministry said.

The ministry expects that the latest measures will help burnish South Korea's eco-friendly image by joining the global drive to tackle environment-related problems. It is also expected to provide new business opportunities for local companies hoping to take part in overseas projects in those green industries.

South Korea has been ramping up efforts for green growth aimed at achieving sustainable expansion while minimizing consumption of energy and natural resources and reducing production of greenhouse gases.

In a separate press release, the finance ministry said that it will expand its support for and cooperation with green growth policies, particularly in the Asian region.

The ministry said that it will hold a conference in Seoul next year to hear opinions from neighboring countries on how to develop the resource-rich and geopolitically-important Mekong river as part of efforts to help advance the region's green growth. (PNA/Yonhap)

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