In brief
Finance Minister Lee Hyoung‑il announced South Korea’s Green Transformation strategy at the Global Green Growth Week, emphasizing a joint pursuit of carbon neutrality and economic prosperity. He outlined steps to decarbonize key sectors, promote renewable energy, electrify transport, and support green industries, while deepening ties with the Global Green Growth Institute and the Global Verified Carbon Market to attract private investment.
On Oct. 29, 2026, South Korea’s finance minister, Lee Hyoung‑il, announced a national agenda that links carbon neutrality with economic growth and job creation during the Global Green Growth Week summit held in Seoul, a gathering hosted by the Global Green Growth Institute.
In his address, Minister Lee warned that “climate change is already posing a serious threat to our lives and our economies as evidenced by record‑breaking heat waves, droughts and floods,” underscoring the urgency of a low‑carbon transition for the country and for the world.
He called for a new mindset that treats environmental protection and economic growth as complementary goals rather than competing priorities, stating that South Korea has “viewed environmental protection and economic growth as competing goals for too long.”
The finance minister presented the government’s Green Transformation, or K‑GX, strategy, which outlines a series of policy measures designed to decarbonize high‑emitting industries, expand renewable energy capacity, electrify the transport sector, and foster the growth of key green industries that can generate new technologies, investment, and quality jobs.
Decarbonizing high‑emitting industry will involve the adoption of low‑carbon technologies, improved energy efficiency, and possibly the use of advanced carbon capture, utilization and storage. The aim is to reduce emissions in sectors that contribute most to South Korea’s greenhouse gas inventory while preserving industrial competitiveness.
Expanding renewable energy will enable the country to increase its share of wind, solar, and other non‑fossil resources in the power mix. This expansion is intended to reduce the amount of coal and oil that must be burned for electricity and to create a steady stream of investment opportunities in the renewable sector.
Electrifying the transport sector will shift the dominant share of mobility from gasoline and diesel vehicles to electric vehicles. The government’s plan includes stronger incentives for electric vehicle adoption, the development of charging infrastructure, and new regulations that encourage a shift toward cleaner transport alternatives.
Fostering the growth of key green industries will create a market for products and services that support a climate‑positive economy, including green building materials, eco‑friendly manufacturing processes, and nature‑based solutions. These industries can also become new export pillars, drawing investment from both domestic and foreign investors.
Minister Lee noted that the transition to a low‑carbon economy and the development of new industries will “create new technologies, attract investment and generate quality jobs,” thereby establishing a virtuous cycle in which environmental action fuels economic prosperity.
To strengthen international cooperation, the minister pledged to deepen ties with the Global Green Growth Institute (GGGI). He said the agency would serve as a model for global cooperation that aligns climate action with economic growth, helping South Korea to share best practices and attract international support for its green agenda.
Furthermore, the finance minister spoke of the Global Verified Carbon Market (GVCM) as a key mechanism to turn emission reductions in developing countries into high‑integrity carbon credits that can be used worldwide. The GVCM will unlock private investment for climate action by creating a robust market for carbon credits that meet stringent verification standards.
By linking the GVCM to domestic green projects, South Korea hopes to mobilize more private capital for initiatives such as renewable energy plants, energy‑efficient industrial upgrades, and green transportation projects, thereby accelerating the nation’s progress toward emission reduction targets.
Overall, the South Korean government’s vision is that climate action is not a cost to business but an opportunity for innovation, competitiveness, and global leadership in the emerging green economy.
