Seoul: The government and the ruling Democratic Party (DP) have reached a consensus on setting South Korea's greenhouse gas emission reduction goal for 2035 at between 53 and 61 percent.
According to Yonhap News Agency, DP spokesperson Park Soo-hyun announced the agreement, highlighting that the decision takes into account recommendations from the Intergovernmental Panel on Climate Change (IPCC), the Constitutional Court ruling, and potential impacts on future generations and industrial conditions. This target surpasses the climate ministry's earlier proposals, which suggested reductions of between 50 and 60 percent and 53 and 60 percent, respectively.
The government and the ruling party also plan to introduce supportive measures for the industrial sector, considering the nation's reliance on high-carbon manufacturing and the feasibility of reduction technologies. They aim to support the decarbonization and industrial transition of companies and foster green industries by establishing a comprehensive strategy.
During a meeting with the DP, Prime Minister Kim Min-seok emphasized the government's commitment to considering the demands of both civil and industrial sectors when finalizing the 2035 reduction goal. The government plans to submit one of its proposals for the nationally determined contribution (NDC) to the United Nations next week, with finalization expected after deliberation by a presidential committee and Cabinet approval.
In addition to environmental goals, the government and the DP have agreed to lower the tax rate on eligible high-dividend income from 35 percent to a proposed 25 percent for dividends exceeding 300 million won (US$205,000). This move follows a July tax revision proposal aimed at encouraging dividend payouts and stimulating the stock market. The proposal suggests taxing eligible high-dividend income at a fixed rate, separate from comprehensive income.
The announcement has already impacted the stock market, with the Korea Composite Stock Price Index (KOSPI) reaching several all-time highs. Detailed numbers regarding the tax revision will be finalized during upcoming General Assembly sessions.