“We will preoccupy the global green market with the foothold of the Korean version of the New Deal”

Announcement of’K-New Deal Globalization Strategy’… Focus on promising projects for each of the four green markets
Reinforcing financial support for exports and orders for the Green New Deal… Supply of 30 trillion loans for 5 years (2021-2025)

[에너지데일리 변국영 기자] The blueprint that Korea will preoccupy the global green market with the Korean version of the New Deal has been released.

The Ministry of Trade, Industry and Energy and the Ministry of Science and ICT announced the joint’K-New Deal Globalization Strategy’ at the ’26th Emergency Economy Central Countermeasure Headquarters Meeting and 9th Korean New Deal Ministers’ Meeting’ held on the 13th.

Regarding the strategy in the green new deal, it was decided to discover promising projects for each strategic market and establish a public-private joint total support system. ▲Advanced maturity ▲Emerging growth ▲Decentralized power supply ▲Energy diversification, etc. It was decided to focus on discovering promising projects according to the characteristics of each of the four strategic markets and intensively supporting exports and orders.

To this end, it plans to install a joint public-private Green New Deal TF within the Overseas Order Support Council (sponsored by the Ministry of Finance) to discover promising projects and provide support for project exports and orders such as financing, ODA, and consulting in a package. In addition, the’Green New Deal Order Support Center’ was set up in KOTRA trade centers in three countries, including the US, Vietnam, and Chile, to provide integrated support from local organizations.

Financial support for exports and orders for the Green New Deal will be strengthened. Under the recognition that financial support is important for expanding overseas expansion, we supply export/order loans worth 30 trillion won for 5 years (2021-2025), increase the loan limit (up to 10%P), and receive additional interest rate benefits (medium △0.3, It plans to provide preferential treatment such as small and medium-sized △0.5%p).

In addition, prior to receiving orders, we decided to provide mid- to long-term financial guarantee limits to overseas clients based on Korean companies’ participation, and expand production facilities expansion, working capital, and export guarantee and insurance support for cashing export bonds. In particular, it plans to strengthen export guarantee and insurance support for small and medium-sized companies with low creditworthiness through special screening based on technology and contracts.

In addition, it was decided to support smooth project orders and development through reorganization of the preliminary feasibility system for public institutions, such as shortening the survey period (4 → 2 months) and expanding the weight of public evaluation (35 → 40%). In addition, the policy is to revitalize the overseas business joint guarantee system for small and medium-sized companies with low creditworthiness by reducing the business feasibility evaluation fee by 50%.

The overseas expansion of green small and medium-sized companies will also be expanded. Among ODAs with high participation of small and medium-sized companies, the proportion of ODA for the Green New Deal was expanded from 6.4% to the OECD average (22.7%) to strengthen the foundation for entry into the green New Deal market in developing countries. When pursuing orders for ODA follow-up projects, a new system that provides preferential support for F/S will be established to expand market preoccupation opportunities by linking ODA with follow-up projects.

When evaluating the performance of shared growth by public institutions, the company decided to expand overseas project exports and orders based on solidarity and cooperation between various entities such as large companies, small and medium-sized enterprises, and financial institutions through preferential treatment of support for SMEs’ overseas expansion.

Overseas expansion is also promoted by strengthening G2G cooperation. The policy is to increase the likelihood of exports and orders by ensuring the reliability of domestic companies by expanding the G2G export contract (domestic company-KOTRA-foreign government) system, which is currently used mainly in the defense industry, to the green sector. Although a number of countries require it in accordance with their own laws and regulations, the G2G bilateral contract (KOTRA-foreign government), which has limitations due to the inability to guarantee exports to KOTRA, will be activated through linkage with policy financing support such as the Export-Import Bank and the Korea Trade Insurance Corporation.

In addition, through the establishment of the’Global H2 Alliance’ led by the private sector among major countries, it is planning to proactively establish a stable global hydrogen supply chain by expanding multilateral hydrogen cooperation such as joint R&D and demonstration and government policy recommendations. At the same time, by establishing and expanding bilateral councils by key regions and countries, such as the US, EU, New Southern and New Northern, the government decided to strengthen green new deal cooperation such as joint research on promising technologies and resolving difficulties for corporate investment by establishing green partnerships between governments.

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