Green fund a boon to economy, globalization

Hosting GCF secretariat would generate 380 billion won worth economic effect per year, analysts say


Businesses welcomed the nation’s luring of the headquarters of the U.N.’s Green Climate Fund to Songdo, a newly developed international town in Incheon Metropolitan City, expecting the move to put life into an array of service industries ranging from conventions to tourism.

The Korea Development Institute, a state-run think tank, on Sunday estimated the economic effect created by the GCF setting up in Korea at 380 billion won ($340 million) per year. The estimate includes job creation.

The GCF, a U.N. fund launched in 2010 to provide financial aid to green projects by developing countries, aims to raise $100 billion a year from its 19 member countries from 2020. The total fund is expected to reach $800 billion. The fund is often called the “World Bank” in the green growth and climate change circles.

“The fund will grow as a mega fund with about 8,000 employees in its headquarters by 2020 and host more than 100 small and big international seminars and forums per year,” the KDI said in a statement.

Incheon City is one of the key economic beneficiaries of the fund’s location. Songdo, where the GCF headquarters will be sited, felt the impact just one day after the announcement of the fund’s location to Korea.

“The number of calls almost doubled on Sunday morning compared with those before the news,” an official of The Sharp Master View, an apartment complex under construction in Songdo International Business District, or SIBD. The district, which is 12.3 km away from the Incheon International Airport, has attracted attention from foreign companies as an international smart city since its first phase opening in 2009.

Incheon City also released a report saying that having the GCF is expected to generate 197 billion won ($180 million) worth of economic effect per year on Sunday.

Boosted by the projected economic effect of the GCF in Korea, the government will drive to attract more international bodies, which tend to create jobs and an array of economic value.

Korea is less competitive in attracting international organizations compared to its status. Korea, however, attracted Seoul office of World Bank last week. The Global Green Growth Institute, a Korea-initiated nonprofit international organization, is also located in Seoul.

By Seo Jee-yeon (jyseo@heraldcorp.com)