South Korea will offer an additional 80 billion won (US$57.7 million) in loans to help local businesses achieve carbon neutrality, the industry ministry said Wednesday.

The latest support follows two previous rounds held earlier this year, during which the government provided a combined 251.3 billion won in loans, according to the Ministry of Trade, Industry and Energy.

The low-interest loan, set at 1.43 percent for small and medium-sized enterprises and 1.93 percent for conglomerates, is intended to help local businesses establish carbon-reduction facilities and fund related research and development projects.

The government also plans to give advantages to industries likely to be affected by the EU’s Carbon Border Adjustment Mechanism (CBAM), which is set to be fully implemented at the start of 2026.

CBAM imposes import charges equivalent to carbon emissions from production on steel, cement, electricity, fertilizer, aluminum and other related products.

Source: Yonhap News Agency