The Government of South Korea has made its support for a greener world clear by announcing big tax benefits and support for eco-friendly technology and research. They expect that this will also be advantageous to increasing competitiveness in this field.
Green research and development will benefit from tax rebates of up to 30% of the investment of the company. In addition, a $1.2 billion fund is to be maintained to help projects that are focused on improving energy efficiency. This fund is part of the special fund operated by Korea Finance Corp. which has a total of 107.4 trillion won that is in place to finance South Korea’s green R&D by the year 2013. Currently these kinds of tax deductions are present only in the solar power industry, which will now cover wind and thermal power and green cars.
The total amount that has been earmarked for green initiatives equals 2% of the country’s GDP of 2009-2013. Much of the fund is to be spent on creating markets for the green products. Products that are expected to come out of this process include rechargeable batteries and also nuclear reactors that will be green oriented.
Sources from the government say that this step was extremely necessary to encourage and support green R&D since the costs involved are huge and the results take a long time to come in – causing most companies to hesitate about pumping in money for this kind of R&D. They say that the decision is also because of the fact that these impediments were causing the country to lag behind while foreign companies were getting huge chinks of this market. Apart from setting these funds aside, the government also plans to request private companies to join in the effort to minimize greenhouse emissions and come up with technology that enhances energy efficiency.
(Via Yonhap News)