November 24, 2024

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South Korea's Finance Minister and Deputy Prime Minister Choi Sang-mok (right) and Italy's Finance Minister Giancarlo Giorgetti shake hands during a meeting held in Washington on Wednesday. (South Korean Ministry of Economy and Finance )

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, the ministry said.

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.

He also emphasized the need for developed countries to support developing countries boost their capabilities in reducing carbon emissions, and address the knowledge and technology gaps through initiatives like the Carbon Free Alliance and the Knowledge Sharing Project.

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. Additionally, he urged swift implementation of debt restructuring and channeling of International Monetary Fund's special drawing rights for financially vulnerable countries.

"The crucial step (to overcome global financial instability) is the establishment of strong and resilient financial markets within each country," Choi emphasized, adding that countries must uphold proactive risk management and market stabilization efforts to keep under control the adverse impacts of individual nations' policies on the global economy.

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.

By Choi Ji-won (jwc@heraldcorp.com)
The Korea Herald