1,000 Trillion Won in Fiscal and Financial Support... Accelerating 'Green Transformation' in Steel, Petrochemicals, and More

The government has announced the 'K-GX' strategy to restructure the industrial structure by using carbon neutrality as a new growth engine. The plan is to leap forward as a green industry powerhouse by injecting a total of 1,000 trillion won in combined fiscal and financial funds and inducing 220 trillion won in investment from private companies.

According to a video from the Ministry of Finance and Economy on the 7th, the government revealed a specific roadmap for responding to the climate crisis and securing industrial competitiveness at the 'Public Briefing on the Korean Green Transformation Strategy' held that day. Deputy Prime Minister for Economic Affairs Lee Young mentioned the economic damage caused by the climate crisis and the strengthening of global carbon regulations (such as the EU Carbon Border Adjustment Mechanism), emphasizing that the country must become a designer of the global order rather than being dragged along by changes.

Supporting 'Decarbonization' Process Conversion for Major Industries such as Steel and Petrochemicals

The core of the government strategy is the process conversion of major manufacturing industries that account for a high proportion of carbon emissions. In the case of the steel industry, which accounts for about 15% of domestic carbon emissions, the government will actively support it so that hydrogen reduction steelmaking demonstration is completed by 2030 and commercialization is achieved by 2037. To this end, plans to create clean hydrogen production complexes and provide stable, cheap electricity to companies are also being pursued.

The petrochemical industry, which accounts for about 8% of domestic carbon emissions, plans to develop electric-based core technologies by 2028 to transition from the use of existing by-product gases or LNG to carbon-free fuels. Additionally, the government aims to build a resource-circulating industrial structure through bio and waste plastic recycling, with a goal to reduce the fossil fuel usage ratio to the 10% level by 2035.

Fostering Future Green Industries such as Batteries, Solar Power, and Semiconductors

The government is also accelerating the securing of new growth engines, which are future sources of income. The government has set a goal to achieve first place in the next-generation battery market by 2035 by enhancing the competitiveness of the battery industry, which has a high global market share. To achieve this, the government will support the commercialization of all-solid-state and sodium batteries by 2030, while simultaneously introducing domestic production tax credits and designating specialized complexes.

The solar power industry will be restructured to focus on high-value and high-efficiency. Support will be provided to enable the world's first mass production of solar tandem cells by 2028, and the semiconductor industry also plans to expand the designation of national strategic technologies and tax support with the goal of commercializing 100 million units of innovative semiconductors (More than Moore) by 2035.

The government plans to support corporate investment by injecting 200 trillion won in fiscal funds and 800 trillion won in financial funds (a total scale of 1,000 trillion won) over the next 10 years. Furthermore, the government intends to nurture more than 50,000 young GX (Green Transformation) specialists over five years and induce regional growth by establishing GX hubs that leverage regional strengths.

Source: original video (YouTube)