The government announced the "Korean Green Transition (K-GX) Strategy" on October 7, committing to invest over 1 trillion won over the next decade to achieve both carbon neutrality and economic growth by 2035. This includes 200 trillion won in public finance and more than 790 trillion won in climate finance, with additional support planned. The goals are to boost potential growth rates, energize GX exports, and elevate Korea to a leading green manufacturing nation.
President Lee Jae-myung stated at the K-GX strategy public briefing held in Seoul, "Proactively pursuing a green transition is a definitive future strategy that secures international competitiveness while protecting the lives and livelihoods of our citizens from the climate crisis."
He emphasized that responding to the climate crisis should not mean sacrificing either the environment or growth, but rather requires a significant transition that enhances both industrial and national competitiveness. "We must secure core green technologies with our world-class research and development capabilities to seize future green markets," he added.
"If we cannot avoid it, let’s enjoy it," he remarked, urging a shift from being mere followers to becoming designers and leaders in the green market. He also stressed the importance of utilizing local industrial complexes and renewable energy to make the green transition a new engine for regional growth, ensuring that aging industrial complexes, vulnerable sectors, and low-income groups are not left behind in the transition process.
The government’s strategy consists of three main directions: 'New Growth Engine GX', 'Inclusive GX', and 'Sustainable GX', along with nine key tasks. It aims to reduce carbon emissions from five major high-emission sectors—steel, petrochemicals, refining, cement, and semiconductors—by up to 31% by 2035, while fostering ten green industries, including electric vehicles, batteries, solar energy, small modular reactors, and high-voltage direct current systems, to rank among the top three in the global market.
The government will also accelerate the expansion of renewable energy, aiming to achieve 100 GW of renewable energy capacity by 2030 and transitioning to a competitive bidding system for distribution. The climate response fund will increase from 2.6 trillion won in 2026 to 7.6 trillion won in 2027, with plans to issue green bonds. Additionally, tax incentives and regulatory improvements will be implemented, and regional GX hubs will be established to support the green transition of industries and regions.
Joo Hwan-wook, policy coordinator at the Ministry of Finance, stated, "The green transition is a survival strategy and a key pillar that will determine our future national competitiveness," pledging to link technological innovation and market creation to growth and job creation.
The government plans to establish a public-private cooperation system and connect industry-specific transition roadmaps with financial support to enhance the competitiveness of green industries. It aims to bolster the technological competitiveness of green industries by linking corporate investments with government support and facilitating entry into overseas markets.
* This article has been translated by AI.
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