A First: Government Funding and Corporate Win-Win Funds in One Program
One of Korea's 2026 ESG support programs deserves a closer look: the High-Carbon Industry Supply Chain ESG Pilot Program. It is the first program to combine two sources of money. The first is government funding run by the Korea Environmental Industry & Technology Institute (KEITI). The second is win-win funds contributed by large companies and managed by the Korea Large Company & SME Cooperation Foundation. The program launches for the first time in 2026.
In August 2026, three companies signed agreements to contribute to the fund: Hyundai Transys (automotive), Doosan Bobcat Korea (construction equipment) and LG Energy Solution (batteries). All three industries have large supplier networks and face growing pressure to manage supply chain (Scope 3) emissions. The program aims to help Korea meet its national emissions reduction target (NDC) by spreading a model in which large companies and their suppliers decarbonize together.
What Suppliers Get: From Consulting to Equipment
Until now, SME decarbonization support in Korea has been split across ministries. Examples include the SME ministry's low-carbon transition support, the trade ministry's K-ESG supply chain due diligence consulting, and carbon-neutral equipment investment grants. The biggest difference in this pilot is that suppliers apply through their large-company customer. Because the diagnosis and the equipment investment happen within one program, suppliers are less likely to receive a consulting report and then have no money to act on it.
How to Get In: Start with Your Customer, Not the Public Notice
In this program, the contributing large company nominates and selects the suppliers that receive support. Instead of waiting for a public call for applications, start by talking to your customer's procurement, shared-growth or ESG team.
Deliverables to Keep from the Consulting Stage
The consulting results become the basis for the Stage 2 equipment application and for future programs. Make sure you have these three items in writing:
Take, for example, a parts maker whose old air compressors and heat-treatment furnaces use a large share of its electricity. It should calculate the reduction potential of each separately. That way it can show clear reasons for which equipment to replace first within the funding limit.
Plan What Comes After the Pilot
The pilot is a starting point. You can use the consulting results to apply for follow-on programs:
Whether the pilot will expand in 2027 or add more large companies has not yet been decided, so check future official notices. For now, gather two to three years of electricity and fuel use data, a list of major equipment with installation years, and a record of what you have submitted to customers. Then you will be ready to apply as soon as an opportunity opens.
How KITIM Can Help
KITIM helps supplier SMEs calculate their emissions, identify reduction projects and set equipment priorities. We also help prepare materials for customer reporting and plan connections to follow-on government programs. If your customer is considering joining the win-win fund program, or you are unsure whether your company can take part, contact KITIM through our inquiry page. We will suggest a participation strategy that fits your position in the supply chain.