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Gov't to create 300 billion won loan for firms investing in carbon reduction projects

Published: 06 Nov. 2025, 16:02

A view of power plants in Incheon’s Seo District is seen from the Gyeongin Ara Waterway on Oct. 19, 2021. [YONHAP]

The government will launch a loan program worth 300 billion won ($207.5 million) over the next three years to support companies investing in carbon emission reduction facilities, and related research and development (R&D) projects, the Industry Ministry said Thursday.

The program will provide financial support to companies participating in 16 projects aimed at cutting greenhouse gas emissions across industries such as oil refining and shipbuilding, as well as advancing hydrogen and fuel cell technologies, according to the Ministry of Trade, Industry and Resources.

With the support, participating companies plan to invest a combined 963 billion won in such projects, the ministry said.

The projects include investment in emission reduction facilities by major oil refinery S-Oil and shipbuilder Hanwha Ocean Ecotech, as well as fuel cell R&D investment by energy solutions provider HD Hydrogen, according to the ministry.

Since 2022, the ministry has been providing low-interest loans to companies committed to achieving carbon neutrality.

The latest plan, once implemented, will put the overall government financial support at 800 billion won in loans to 95 projects aimed at reducing industrial carbon emissions.

Yonhap