The Ministry of Climate, Energy and Environment and the Korea Environmental Industry & Technology Institute (KEITI) announced a major expansion of the \”Korean Green Bond and Green Asset-Backed Securities (ABS) Issuance Support Program\” for 2024. This initiative incorporates the revised Korean Green Taxonomy, updated in December 2023, to broaden support for next-generation low-carbon technologies. The program aims to expand funding options for companies, stimulate decarbonization investments, and promote private-sector-led green economic growth. These policy changes are expected to mark a significant turning point for Korea\’s green finance market and carbon neutrality efforts.
Green ABS are issued by applying the Korean Green Taxonomy to asset securitization based on SME and mid-sized company corporate bonds, enhancing their creditworthiness. On December 10, 2025, Minister Kim Sung-hwan highlighted the importance of these policies at the 8th Carbon Neutrality and Energy Policy Seminar. The revised taxonomy now includes heat pumps, clean methanol, and carbon-neutral ICT as eligible green economic activities. From this year, SMEs and mid-sized companies can receive interest subsidies for working capital related to green economic activities, in addition to facility funding. New criteria for facility funding have also been established to reflect the characteristics of industries such as construction and shipbuilding.
Support for green ABS issuers, especially SMEs facing challenges entering the bond market, has been strengthened. The interest cost support period has been extended from one year to up to three years, reducing financial burdens for participating companies. In 2024, up to KRW 300 million per company will be provided to cover interest costs incurred when issuing green bonds or green ABS under the Korean Green Taxonomy. Listing fees and annual charges for green bond issuers will also be waived for an additional year until December 31, thanks to cooperation with the Korea Exchange. Director Seo Young-tae emphasized the importance of improving access to green finance and expanding private-sector-led green investment.
Applications for the Korean Green Bond Interest Subsidy Support Program open on the 12th, and the Green ABS Issuance Support Program starts on the 21st via the Responsible Investment Platform (gmi.go.kr). Detailed information on announcements, eligibility, and support can be found on the Ministry\’s website (mcee.go.kr) or KEITI\’s website (keiti.re.kr). Inquiries can be made to the Ministry\’s Green Transition Policy Division (044-201-6706) or KEITI\’s Green Investment Support Office (02-2284-1974). This expanded program is expected to drive sustainable growth in Korea\’s green finance ecosystem and contribute to achieving carbon neutrality.