Ministry of Economy and Finance

On May 27, the Ministry of Economy and Finance (MOEF) and the World Bank held a Korea-World Bank Group Partnership Facility (KWPF) 2025 Global Forum: Innovation in Agriculture and Food Systems at the Park Hyatt Hotel in Busan.   This year’s forum was held under the theme of Innovation in Agriculture and Food Security, bringing together around 150 participants including officials from the World Bank’s Development Finance and Agriculture and Food Global Practices, representatives from seven developing countries (Vietnam, the Philippines, Mexico, Colombia, Kenya, Morocco, and Tanzania), as well as officials from Korean institutions such as the Ministry of Agriculture, Food and Rural Affairs, Rural Development Administration, Export-Import Bank of Korea, and National Information Society Agency.   Through this Forum, MOEF and the World Bank shared six best practices showcasing the application of Korea’s innovative technologies – such as digital and low-carbon agricultural solutions – in the field to seven developing countries, including Tanzania and Kenya. Building on these cases, Korea, the World Bank, and the partner countries aim to enhance trilateral cooperation in agriculture and food security. The event also featured a session introducing leading Korean agri-tech companies – Sherpa Space, Daedong, IoCrops, and Thankscarbon – to government officials from the participating countries.   Director General for Development Finance Moon Ji-sung delivered opening remarks at the forum, reflecting on the achievements of the KWPF to date and outlining future policy directions for its agriculture and food sector initiatives to promote sustainable agriculture in developing countries.   First of all, Director General Moon emphasized the significance of this year’s KWPF Global Forum, held under the theme of agriculture and food security, particularly amid declining agricultural productivity due to climate change. He also highlighted that the KWPF, Korea’s largest trust fund, has contributed $46.8 billion since its establishment in 2013, supporting 208 projects across 99 countries; through technical assistance projects in collaboration with various Korean institutions, the fund has actively contributed to improving agricultural productivity and advancing farm development in developing economies.   Second, Director General Moon also underscored the importance of collaboration between developing nations and Korean companies and institutions equipped with innovative agricultural technologies to ensure the sustainability of agriculture in these nations. He noted that Korea is a global leader in digital and low-carbon agricultural technologies – such as smart farms and climate-smart agriculture* – and that expanding cooperation with Korean partners through the KWPF could significantly advance innovation in their agricultural sector.   * Climate-smart agriculture refers to farming practices that utilize smart greenhouses and advanced agricultural machinery to reduce greenhouse gas emissions while improving productivity in response to climate change.   Director General Moon also took the opportunity of this event to hold the annual consultation meeting on co-financing between the Economic Development Cooperation Fund (EDCF) and the World Bank. This marked the second such meeting following the inaugural session held in Washington, D.C. in July last year, serving as an important platform to coordinate future directions of co-financing cooperation between the EDCF and the World Bank and to explore ways to bolster their partnership. Please refer to the attached files. 

On May 21, Acting Minister of Economy and Finance Kim Beomseok chaired the Ministerial Meeting on Economic Affairs and Ministerial Meeting on Strengthening Industrial Competitiveness at the Government Complex-Seoul.   * Participants: Acting Minister of Economy and Finance (Chair), Ministers and Vice Ministers of the Ministry of the Interior and Safety, Ministry of Trade, Industry and Energy, Ministry of Health and Welfare, Ministry of Employment and Labor, Ministry of Land, Infrastructure and Transport, Ministry of Oceans and Fisheries, Ministry of SMEs and Startups, and the Office for Government Policy Coordination.   Over the past three years, the government has convened 94 Ministerial Meetings on Economic Affairs to focus all efforts on restoring price stability, boosting investment, and supporting small businesses and SMEs. In particular, during the past six months marked by heightened internal and external uncertainties, 14 Ministerial Meetings on Strengthening Industrial Competitiveness were held to respond swiftly to changes in the global industrial and trade environment. Immediately following the launch of the new U.S. administration, the government proactively responded to potential tariff impacts by formulating an inter-ministerial export strategy, while also preparing measures to fundamentally enhance the ecosystem of high-tech industries such as semiconductors, AI, and secondary batteries.   The government plans to continuously reinforce this industrial and trade support system so that it can serve as a strong foundation for navigating global competition. As a first step, it will mobilize all available resources to minimize the impact of tariffs. The government has proactively established support systems for affected companies, such as the Tariff Response Voucher Program, and formulated tailored support measures for industries subject to tariffs, including steel and automobiles, as well as for SMEs. Building on these efforts, it plans to preemptively prepare for additional tariffs on semiconductors and pharmaceuticals and shore up support for reshoring investments aimed at mitigating tariff impacts.   Notably, as part of efforts to support businesses in addressing trade-related risks, the government has secured 28.6 trillion won in policy-financing, backed by a supplementary budget of 1.5 trillion won. This funding will be used to support business stabilization for affected companies (16.3 trillion won), market diversification (7.4 trillion won), and facility investment aimed at strengthening industrial competitiveness (4.9 trillion won). Along with it, relevant ministries will closely monitor the disbursement status to guarantee the prompt delivery of policy funds to the field.   The government will also take an all-encompassing approach to bolstering industrial competitiveness. It will support the creation of high-tech industry infrastructure, including the National AI Computing Center and the Yongin Semiconductor Cluster, and push for the swift revision of the Korea Development Bank Act to establish a 50 trillion-won “High-tech Strategic Industry Fund”. Furthermore, it will promptly complete restructuring consultations for the petrochemical industry and sequentially develop sector-specific upgrading strategies for key industries such as steel.   Strengthened efforts will be made to foster the service industry. Through the public-private “Service Industry Development Task Force”, it has developed a range of policy tasks to revitalize the sector and, based on this work, has announced ten sets of sector-specific measures covering areas such as everyday services, export promotion, and productivity innovation. Going forward, the government will continue to support the rapid passage of the “Framework Act on Service Industry Development” and devise strategies to foster content and defense MRO as key export sectors. Furthermore, regional and itemized price information for marriage services will be disclosed starting at the end of May.   Not only that, the government will support the stable development and operation of large-scale digital administrative systems to provide stable and convenient services to the public. As for development projects exceeding 70 billion won, participation by large enterprises will be permitted, and proven commercial software will be prioritized over in-house development. A modular approach will also be introduced to ensure system stability even if issues arise in certain functions.   At the meeting, participants discussed the following agenda items: The “Implementation Progress of Support Measures for the Changing Industrial and Trade Environment”, “Financial Support Plan for Addressing Trade Risks”, “Innovation Measures for Large-Scale Information System Construction”, and “Implementation Progress of Key Service Industry Policies and Future Plans”. Please refer to the attached files.   

On May 20, Acting Minister of Economy and Finance Kim Beomseok, chaired the 5th Sustainable Economy Policy Council (formerly the ESG[1] Policy Council) at the Korea Trade Insurance Corporation. The meeting discussed the policy direction and future tasks related to key carbon neutrality initiatives, including the Climate Fund, Korean Emissions Trading Scheme, and Government Green Bonds.    * Participants: Acting Minister of Economy and Finance (Chair), Ministry of Trade, Industry and Energy, Ministry of Environment, Ministry of SMEs and Startups, the Korea Chamber of Commerce and Industry, Korea Enterprises Federation, Korea Financial Investment Association, Korea Exchange, Citibank, and Hana Bank.   The Council’s name has been changed from the “ESG Policy Council” to the “Sustainable Economy Policy Council” to reflect its expanded focus, not only on reinforcing ESG practices from a corporate and investment perspective, but also on fostering sustainable development across social, economic, and environmental systems as a whole. Going forward, the Council will continue to serve as a platform to facilitate extensive dialogue and cooperation with the private sector – encompassing companies, investors, related institutions, academia, and subject-matter experts – on a wide range of sustainability-related policies, including ESG.   Today’s meeting brought together private-sector experts, industry representatives, and government agencies to discuss: The direction for the 2026 Climate Fund budget (Ministry of Economy and Finance), current status of the 4th Allocation Plan of the Korean Emissions Trading Scheme and future plans (Ministry of Environment), and current status of government green bond issuance in major countries and implications (Korea Institute of Finance). The meeting served as an opportunity to strengthen policy coordination efforts between the government and private sector on carbon neutrality initiatives.   The Ministry of Economy and Finance (MOEF) first shared the 2026 Climate Fund Directions and gathered feedback from the participants. The 2026 Climate Fund will focus on: Expanding greenhouse gas reduction efforts through support for eco-friendly public infrastructure*; promoting green finance to facilitate private-sector-led investment; supporting core technology R&D to close technological gaps; and ensuring a just transition to a low-carbon economy by mitigating potential shocks, such as those stemming from the phase-out of coal-fired power plants.   * e.g., Infrastructure to facilitate a circular economy, such as public pyrolysis facilities and biogas conversion facilities for waste resources.   In addition, key issues related to the “4th Allocation Plan for the Korean Emissions Trading Scheme (2026-2030) ” – which outlines the detailed implementation framework under the “4th Basic Plan for the Korean Emission Trading Scheme (2026-2035)” – were reviewed. Diverse opinions were gathered on specific matters such as the allocation method of emissions allowances and market stabilization measures.   Furthermore, the meeting shared cases of government green bond issuance from countries such as France, Germany, and the United Kingdom, which are already active in the global green finance market. This provided a basis for in-depth discussions on Korea’s future direction for government green bond issuance and strategies to boost private sector green investment. In the discussion, private-sector experts emphasized the critical role of private capital in achieving carbon neutrality and offered suggestions for diversifying the revenue sources of the Climate Fund and expanding the demand base for government green bonds. Based on the meeting’s input and further consultation with government bond market participants, MOEF plans to review amendments to relevant legislation, including the Framework Act on Carbon Neutrality, in the second half of this year and to gradually improve infrastructure such as the National Fiscal Information System.   [1] ESG: Environmental, social, and governance. Please refer to the attached files.