South Korea Plans 600 Billion Won Climate Tech Financing to Support 1,000 Companies

South Korea has announced plans to establish a 600 billion won financing package to support climate technology companies, aiming to identify 1,000 climate tech innovators and 30 prospective unicorn companies by 2030. Unveiled on 29 October 2026 by the Ministry of SMEs and Startups and the Ministry of Climate, Energy and Environment, the initiative forms part of the country's Korea Green Transformation (K-GX) strategy. The government also plans to introduce a support program that offers eligible companies up to 10 billion won over five years for research and development (R&D), commercialization, exports, and financing.

 

The proposed financing package will draw on the Future Environmental Industry Investment Fund, green loans and the Climate Tech Innovation Fund. Support will be tailored to companies at different growth stages, from early-stage startups to businesses preparing for commercial expansion. The government also intends to expand access to testing facilities operated by major corporations and public institutions, including Korea Electric Power Corporation and Korea Water Resources Corporation. Additional measures include supply-chain research projects, climate technology testing infrastructure, and innovation clusters designed to accelerate the development and deployment of new technologies.

 

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The strategy will focus on five climate technology sectors: cleantech, carbon tech, ecotech, food tech and geotech. Priority areas include renewable energy, carbon capture, circular materials, sustainable packaging and climate data technologies. The government also plans to introduce a Climate Tech Industry Promotion Act, establish regulatory exemptions for emerging technologies and expand regulatory-free zones to address barriers to commercialization. Public procurement and overseas market development initiatives will provide additional support for companies seeking to commercialize innovative climate solutions.

 

South Korea currently identifies 564 climate tech innovators and four prospective unicorn companies, meaning it aims to add another 436 innovators and 26 prospective unicorns by 2030. Lee So-young, Minister of SMEs and Startups, said, "We will build a growth ladder so promising climate tech companies can establish themselves in the market and grow into global unicorns." Kim Sung-hwan, Minister of Climate, Energy and Environment, emphasized the importance of supporting climate technology businesses throughout their development and expansion. The proposed measures aim to strengthen South Korea's climate technology ecosystem while encouraging private investment, industrial innovation and international market participation.