The government will support 80 billion won in loans for companies investing in greenhouse gas reductions. The Ministry of Trade, Industry and Energy said on Monday it is recruiting companies for its carbon-neutral transition leading project loan support programme. The support is intended for companies investing in greenhouse gas reduction facilities and research and development. Selected companies can receive loans of up to 50 billion won per project at an interest rate of 1.3 percent. Research and development funding is up to 10 billion won.

Large companies, as well as small and mid-sized firms, can apply. The ministry will deduct 2 percentage points for small and mid-sized firms and 1.5 percentage points for large companies from the loan rate under the Public Capital Management Fund lending account. The current minimum rate is 1.3 percent.

Companies in 6 industries covered by the EU Carbon Border Adjustment Mechanism will receive 2 additional points in selection and evaluation. The sectors are steel, aluminium, cement, fertiliser, electricity and hydrogen. Companies that have won approval for business restructuring plans under a special law to boost corporate vitality, and companies selected for Net Zero ChallengeX, will also receive additional points.

From 2022 through last year, the ministry provided 850.9 billion won in loans for 95 cases, including low-carbon equipment conversion and technology development, through the programme. New private-sector investment in carbon neutrality was induced to the tune of 3.21 trillion won.

Companies seeking support can apply via the Korea Industrial Complex Corp loan support system website from Feb. 25 through April 10. Regional briefings will be held in Daejeon on March 5, Seoul on March 6, Daegu on March 9 and Gwangju on March 10.

Lee Min-woo (이민우), the ministry's director general for industrial policy, said, "The burden on industry is large due to the establishment of challenging 2035 national greenhouse gas reduction targets, but low-carbon transition investment is a path we must take to carry out carbon reduction and secure industrial competitiveness." He added, "The ministry will also continue to support industry by establishing sector-by-sector carbon reduction implementation roadmaps for steel and petrochemicals and enacting the Act on Promoting the Industrial Green Transition."