TLDR:
- South Korea plans to establish a venture capital fund worth W23 trillion ($16.6 billion) to boost green investment in the private sector
- South Korean Finance Minister Choi Sang-mok made the announcement during the G20 finance leaders’ meeting in Washington
South Korean Finance Minister Choi Sang-mok unveiled the country’s plan to bolster green investment in the private sector by establishing a venture capital fund worth 23 trillion won ($16.6 billion), the ministry said Friday. Emphasizing the importance of leveraging private capital for climate financing, Choi made the announcement during the Group of 20 finance leaders’ meeting held in Washington on Wednesday and Thursday.
During a session on sustainable finance, Choi highlighted the need for incentives to refine private investment mechanisms and share risks. He further reiterated Korea’s commitment to climate action by allocating the venture capital fund for clean energy, and pledged the country’s continued support for the Green Climate Fund, the ministry said. Korea contributed $300 million for the initiative last year.
In the second session, in which Choi convened as a co-chair, he underlined the need for solidarity in ensuring financial stability, noting how global uncertainty has grown recently due to widening interest rate gaps among major countries and escalating geopolitical tensions. On this, the Korean finance minister called for reform of multilateral development banks and urged G20 countries to collaborate to devise a reform roadmap for the banks.
During his trip to Washington, Choi also met with Giancarlo Giorgetti, the finance minister of Italy, which chairs this year’s Group of Seven. During their meeting, Giorgetti extended a formal invitation to Choi for the G-7 finance ministers’ meeting, slated for May 23-25 in Stresa, Italy.
