The Ministry of SMEs and Startups (Minister LEE Young, hereinafter referred to as MSS) held a public-private partnership agreement ceremony. The purpose of the event was to engage the financial sector to support SMEs in achieving green transformation (GX). The ceremony was held on December 5 at the Conrad Hotel in Yeouido, Seoul.

The agreement is designed to create an environment for SMEs and startups to participate in voluntary carbon reduction. It aims to activate emission certification and trading platforms by establishing a close business cooperation system between financial investment companies (six securities firms), KOTEC, and KOSME. This partnership seeks to expand investment in promising climate technology companies.

The main contents are as follows:
➀ Vitalize the voluntary carbon emissions trading market
➁ Trading and brokering credits for SMEs and startups
➂ Invest in promising climate tech companies and provide preferential access to financing
➃ Supporting the discovery and start-up of climate tech companies

The agreement was signed by six financial investment companies, including Eugene Investment & Securities, Hana Securities, KB Securities, Mirae Asset Securities, NH Investment & Securities, and SK Securities (in alphabetical order), as well as KOTEC and KOSME.

Minister LEE Young; National Assembly Member HAN Moo-gyeong, who introduced a bill to promote carbon neutrality for SMEs; and National Assembly Member KANG Hoon-sik, who introduced a bill to promote decarbonization management innovation for SMEs, attended the business agreement.

Following the signing ceremony, a meeting was held to discuss public-private partnerships for the green transformation of SMEs and startups.

First, SDX Foundation Chairman JHUN Hajin, who is involved in carbon certification and financial sector consulting, presented the carbon market outlook and response strategies for SMEs and startups. BNZPARTNERS CEO LIM Dae Woong presented the application of K-Taxonomy* for SMEs and startups.

* K-Taxonomy: A Korean green finance classification system that provides guidelines on whether a particular technology or business activity is included in green activities for carbon neutrality

Following the presentation of MSS's policy on how to create a green transformation ecosystem for SMEs, the panel discussed public-private partnerships with the participants. During this event, opinions from private companies and organizations in the carbon emission market, such as financial investment companies and carbon certification and consulting companies, were shared. The aim was to create a market-oriented SMEs and startups green transformation ecosystem.

Minister LEE Young stated, "As countries around the world are pushing for carbon neutrality through laws and systems such as the EU Carbon Border Adjustment Mechanism (CBAM*), the participation of not only large and medium-sized companies but also SMEs and startups is crucial to realize the carbon neutrality goal." She added, "With the government ensuring credibility and the financial sector adding expertise, we hope to create a carbon-neutral market ecosystem where SMEs and startups can actively participate."

* CBAM (Carbon Border Adjustment Mechanism): When importing carbon-intensive products (six items: steel, aluminum, fertilizer, cement, hydrogen, and electricity) into the EU, it is mandatory to purchase emission credits according to the amount of carbon emitted in the production process (pilot implementation in October 2023).

National Assembly member HAN Moo-gyeong stated, "I hope that through public-private partnerships in the financial sector, carbon neutrality can become a new growth opportunity for SMEs rather than a regulation." National Assembly member KANG Hoon-sik stated, "Carbon-neutral management is becoming an essential requirement for our SMEs to become global companies. Establishing public-private partnerships in the financial sector is crucial to support this endeavor."