Under its pledge to go carbon neutral by 2050, the South Korean government plans to establish a fund to pay for the changes to the economy and it will overhaul the taxation system regarding carbon and greenhouse gas emissions to finance the fund.
It plans to introduce a tax and levy system which puts a price on carbon emissions.
"Carbon taxes will be introduced after comprehensively reviewing various factors including climate change, income distribution, inflation and industrial competitiveness."
Finance Minister Hong Nam-ki announced the plans after a ministerial meeting on Monday.
"The government came up with three policy directions under the plan which are scaling down dependence on carbon in all economic sectors, creating a low carbon industrial ecosystem and minimizing any disadvantages generated during the transition. The government will also work to strengthen the groundwork for implementing these policies."
The government will reduce the country's reliance on industries containing large carbon emitters including steel and petrochemicals.
It will encourage high-carbon emitting industries to transform their portfolios so that they are more focused on low carbon businesses.
And it will support those industries to minimize any fallout suffered by workers and companies during the transition period.
The government also plans to develop new growth engines by nurturing promising eco-friendly industries including electric and hydrogen cars and rechargeable batteries.
EV charging stations are to be installed for 20 million households nationwide and the use of green hydrogen is to be expanded by up to 80 percent by 2050.
Eum Ji-young Arirang News.