South Korea Unveils Trillion-Won-Scale Green Industry Strategy

South Korea has unveiled a sweeping green-transition strategy designed to turn climate action into a source of industrial growth, investment and national competitiveness rather than a drag on the economy.

President Lee Jae Myung presented the Korean Green Transformation, or K-GX, strategy at a public briefing in Seoul on Wednesday. The plan combines government financing, fiscal support and corporate investment in an effort to decarbonize major industries while developing new growth sectors.

The government plans to provide 200 trillion won in fiscal support and more than 790 trillion won in financing over the next decade. Together, the measures amount to roughly 1,000 trillion won, or about $746 billion, in government-backed support for the transition.

The strategy targets emissions reductions in carbon-intensive sectors including steel and petrochemicals. It also seeks to cultivate batteries, next-generation solar power and small modular reactors as new engines of growth. South Korea’s export-oriented economy remains heavily dependent on energy-intensive manufacturing, including semiconductors, automobiles and electronics, making the cost and pace of decarbonization especially important.

Lee argued that responding to climate change should no longer require countries to choose between environmental protection and economic expansion. He said increasingly severe weather is disrupting daily life, while carbon-related trade barriers and demands from overseas buyers are raising pressure on Korean manufacturers to cut emissions.

The president also called for the wider use of renewable energy and industrial complexes to spread the benefits of the transition beyond major urban centers. At the same time, he said older industrial zones, vulnerable industries and lower-income households should not be left behind.

The initiative follows Lee’s pledge at the United Nations General Assembly last month to make green transformation one of the pillars of South Korea’s response to shared global challenges. His government is seeking a cycle in which carbon neutrality supports technological development, high-quality employment and stronger export competitiveness.

The plan was developed through a joint task force involving 13 government ministries and 17 business and industry organizations. SK Group Chairman Chey Tae-won, who leads the private-sector side of the task force through the Korea Chamber of Commerce and Industry, said companies had often hesitated to make long-term carbon-neutral investments because they were expected to bear uncertain technology, market and policy risks alone.

Chey said incentives, infrastructure and regulatory changes would allow government and business to share those risks. He added that companies now need to deliver on 220 trillion won in planned investment and translate the strategy into measurable projects.

The government’s challenge will be ensuring that the enormous financing commitment produces commercially viable technology, real emissions reductions and durable jobs. Its success will also depend on policy continuity and whether support reaches smaller suppliers and regions exposed to the costs of industrial restructuring.