South Korea's Financial Services Commission discusses transition finance for steel decarbonization at government forum

South Korea's Financial Services Commission (FSC) participated in a forum hosted by the National Climate Crisis Response Committee on connecting steel decarbonization investment with financing. Industry participants highlighted the costs of developing new production technologies and replacing equipment, requesting financial support alongside measures to expand clean energy supplies and demand for steel with lower emissions. Steel accounted for about 39% of South Korea's industrial greenhouse gas emissions in 2018. The FSC discussed progress and policy directions for transition finance, while other participants examined investment support under the Korea Green Transformation (K-GX) strategy. Announced earlier in October, that strategy includes at least KRW 790 trillion in climate finance from five policy finance institutions during 2026-2035. POSCO Holdings sought government support for market creation, clean electricity and hydrogen infrastructure, and financing conditions conducive to investment over the long term. The Korea Iron and Steel Association identified tax support and electricity cost relief as common industry priorities. It also called for access to quality steel scrap and recognition of emissions reductions achieved through steel products with lower emissions. The committee plans to use the feedback in its specialist discussions on green transition in sectors where emissions are difficult to reduce. It will also share the findings with relevant ministries to examine where policies need better coordination or additional support.