ANNOUNCEMENT 06 Jul 2009In July 2009, the government of Republic of Korea announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
Press Release, ' ', Ministry of Strategy and Finance, http://www.mosf.go.kr/news/news02.jsp?boardType=general&hdnBulletRunno=62&sub_category=126&hdnFlag=1&hdnDiv=185&&actionType=view&runno=4003558
On 6 July 2009, as a result of the 4th Green Growth Committee meeting, the government of the Republic of Korea announced several additional measures to back up the 'Green New Deal' program introduced earlier in the year.
According to the press release, the government plans to raise fiscal support for R&D in the green industries to 2.8 trillion KRW (ca. 2.5 billion USD) by 2013 from 2.0 trillion KRW (ca. 1.8 billion USD) in 2009. Besides, the Korean Development Bank sets up a 300 billion KRW (ca. 273 million USD) fund for R&D and pre-market testing for these industries.
The government also said that it will increase the established fund for SMEs in the green growth industries to 1.1 trillion KRW (ca. 1 billion USD) by 2013 from 60 billion KRW (ca. 54 million USD) in 2009. Furthermore, the credit guarantee scheme shall be more than doubled from 2.8 trillion KRW (ca. 2.5 billion USD) to 7 trillion KRW (ca. 637 billion USD) by 2013. In addition, it will provide an extended credit guarantee of 3 years for "green" startups with inidivudal loan worth between 300 and 500 million KRW; 273,000-455,000 USD).
Moreover, in order to support the oversea expansion of green industries from Korea, the government plans to triple export financing from 1 trillion KRW (ca. 9 billion USD) to 3 trillion KRW (ca. 2.7 billion USD) by 2013. It also said that those companies doing overseas green projects will be offered 20% discount on the fees for export insurance and the insurance coverage will be doubled.
Finally, in order to promote an eco-friendly car industry, 600 billion KRW (ca. 546 million USD) will be provided for the equipment investment and a "Green Bridge Loan" of 1 trillion KRW (ca. 0.9 billion KRW) shall be made available for parts and components producers.