Five South Korean companies including Hyundai Motor Co. (005380) and Posco (005490) agreed to support small suppliers in their carbon emissions-reduction ventures through project financing and technology transfer, the government said.
In return, the larger companies, which include Hynix Semiconductor Inc. (000660), Samsung Electro-Mechanics Co. and Honam Petrochemical Corp. (011170), will receive carbon credits, the Ministry of Knowledge Economy said in a statement today.
The cooperation may result in as much as 1 trillion won ($917 million) of investments in small suppliers and subcontractors over the next 10 years, according to the ministry.
South Korea said in 2009 it would voluntarily cut carbon emissions by 30 percent by the end of this decade. The government of Asia’s fourth-biggest polluter is also seeking to adopt carbon emission trading in 2015.
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