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South Korea will refrain from investing in overseas coal projects using public funds beginning October, in line with the global initiatives to go carbon neutral by 2050.
According to the Ministry of Trade, Industry, and Energy, the public funds include all types of tax-backed support, including official development assistance, export finances, and investment.
A guideline to be implemented next month mandates all public organizations to withhold disbursing funds to overseas coal power plants, while government-funded private businesses will also be persuaded to follow the measure.
However, South Korea will maintain the continuity of existing projects with partner countries in observance of economic and diplomatic ties.
South Korea said it will also actively participate in the global discussions to cut the use of fossil fuels, including those from the Organization for Economic Cooperation and Development, aiming to apply stricter measures to local coal plants.
