Green Finance in the Republic of Korea: Barriers and Solutions

Abstract

The Republic of Korea fully launched its green finance scheme in 2009 and then introduced the environmental information disclosure system and the emission trading scheme in 2013 and 2015, respectively. However, their use has not increased dramatically, as the public sector has taken the major role in green finance. Nowadays, green finance is expanding as the Government of the Republic of Korea is making efforts to change the energy mix by decreasing the share of nuclear energy and increasing that of new and renewable energy. The private sector is also attempting to revitalize the green finance in the Republic of Korea, such as commercial banks, private equity funds, and so forth. Changing the energy mix needs a huge fund, so the government alone cannot be responsible; the government is seeking to reach this goal in combination with private firms. In this context, the motivation of the Korean people to adopt eco-friendliness and energy efficiency through green financing, public or private, is necessary, together with industrial support from the government or financial institutions.