The Export-Import Bank of Korea (Kexim) is planning a new programme to provide more systematic and effective support for growth of Korea’s green industries.
The Green Pioneer Programme will provide US$20bn every year until 2020 to 200 selected green enterprises, mainly involved in renewable energy.
"We hope to increase Korea’s market share in the green sectors of developing countries.”
The target for the programme is to win 500 green energy plant contracts.
The programme comes as a response to Korea’s small domestic market for the green sector which reportedly does not provide the country’s firms with enough experience or completed contracts to win business overseas.
However, other countries that are newcomers to the green industry, such as China, are successfully achieving rapid growth because the government actively supports businesses.
“The green pioneer programme was developed to promote the export of the green industry as a future growth engine and applies the strategy of creating an overseas market before expanding the fundamentals in order to help companies strengthen track records [and] accumulate business development experiences,” says Dongsoo Kim, chairman and president of Kexim.
“In doing so, we hope to increase Korea’s market share in the green sectors of developing countries,” Kim adds.
Kexim says that development of the programme has been marked as a top priority and that a taskforce has worked alongside consultants to conduct research through September and October.
The programme is split into two segments; green plants and green champions.
The green plant segment will identify prospective businesses and provide project design development, advisory services and financial support through export financing and the state-run Economic Development Cooperation Fund.
The green champion programme will be much more focussed on providing a range of financial products to meet the needs for green firms’ processes.
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