Seoul may pronounce to stop subsidizing overseas coal projects next week
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The Korean government fine-tuning its outline to be presented at the Climate Change Summit scheduled for Apr. 22-23 has discussed with policy lenders to stop cheap loans and state guarantees to overseas coal-powered power stations.
From 2009 to June last year, as much as 60 trillion won ($53 billion) loans went to overseas power projects based on coal fueling, of which 22.2 trillion came from state lenders Korea Development Bank and Export-Import Bank of Korea.
Oversea projects mostly require state backing.
Doosan Heavy Industries which had to turn to state bailout after the government stopped construction of new nuclear reactors currently earns 35 to 40 percent from overseas coal power plants.
Over 300 small and mid-sized parts suppliers are engaged in the Kepco consortium after the state utility’s board okayed its plan to invest in Jawa 9 and 10 coal power projects in Indonesia. Without assistance and guarantees from state institutions, they won’t be able to proceed with their works, an unnamed official from the power industry said.
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