The Ministry of SMEs and Startups and the Small and Medium Business Corporation announced on July 2 that they have finalized the selection of 30 companies for the "2026 Carbon Neutral Equipment Investment Support Project."
This initiative aims to respond to domestic and international carbon regulations, including the Carbon Border Adjustment Mechanism (CBAM), by enhancing greenhouse gas management in the supply chains of global companies. The program operates by having primary contractors support the self-financing of partner SMEs, with the government providing additional funding.
The selected companies include 13 from the automotive and trailer manufacturing sector and 10 from metal processing, focusing on industries with significant carbon emissions in their supply chains. These companies will work to reduce greenhouse gases and improve energy efficiency through the adoption of carbon-neutral equipment and process enhancements.
Seventeen major and mid-sized companies, including those in the automotive parts and semiconductor sectors, will participate as primary contractors to support the equipment investments of partner SMEs.
The government funding limit varies based on the self-financing ratio of the partner SMEs. If a partner SME covers 10% of the project cost, it can receive up to 300 million won; if there is no self-financing, the maximum government support is 100 million won. The support period extends until December of this year, lasting approximately six months.
Previously, the Small and Medium Business Corporation and the Technology Guarantee Fund held a joint investment briefing on carbon reduction technologies in May. The two organizations agreed to pursue collaborative measures to support the growth of companies in the carbon reduction technology sector.
Kang Seok-jin, President of the Small and Medium Business Corporation, stated, "Global carbon regulations are a challenge that the entire supply chain must address, not just individual companies. We will continue to expand support projects based on supply chains that involve both primary and partner companies."
* This article has been translated by AI.
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