South Korea's Bold Climate Move: 53-61% Emissions Cut Amid Global Pressure

"The two sides reached a general agreement on the national target for greenhouse gas emission reduction, taking into account opinions from the Intergovernmental Panel on Climate Change (IPCC), the Constitutional Court' ruling, potential burdens on future generations and industrial conditions," DP spokesperson Park Soo-hyun said.

Their agreed target is slightly higher than the climate ministry's two earlier proposals -- one between 50 and 60 per cent, and another between 53 and 60 per cent, reports Yonhap news agency.

"We need to proclaim our audacious reduction goal and commitment to the world," he said. "The numbers are decided in a way to show the government's strong will and direction."

Instead, the government and the ruling party agreed to come up with supportive measures for the industrial sector, considering the nation's industrial structure centered on high-carbon manufacturing, the feasibility of reduction technologies and global competitiveness.

They also decided to support the decarbonisation and industrial transition of companies, and to foster green industries by establishing a new comprehensive strategy.

During the government-DP meeting, Prime Minister Kim Min-seok reaffirmed that the government will reflect demands from civil and industrial sectors as much as possible when setting the 2035 reduction goal.

"Based on respect for the Constitutional Court's ruling, the government will seek wisdom that reflects the international community, local civic groups, and industrial sectors," Kim said.

Last week, the government unveiled two proposals for the nationally determined contribution (NDC) by 2035, one of which will be submitted to the United Nations next week.

Under the first option, South Korea would cut greenhouse gas emissions by between 50 and 60 percent by the target year, while the second option calls for a reduction of between 53 and 60 percent.

Following the announcement, industry and environmental groups voiced concerns over the proposed targets, arguing they are either too high or too low.

In a ruling in August last year, the Constitutional Court stressed that greenhouse gas reduction targets must comply with scientific and international standards while avoiding excessive burdens on future generations.

The government plans to finalise the NDC proposal this week after deliberation by a presidential committee and approval by the Cabinet.

Meanwhile, the government and the ruling party agree to lower the tax rate on eligible high-dividend income from 35 percent for dividends over 300 million won (US$205,000), DP spokesperson Park said.

The move follows a government tax revision proposal in July, which focused on separate taxation for high-dividend stocks in a bid to encourage dividend payouts and boost the stock market.

Under the proposal, eligible high-dividend income would be separated from comprehensive income and taxed at a fixed rate, rather than being included in total income subject to tiered taxation.

The ruling party has called for a 25 percent rate, while the government initially proposed 35 percent.

"Detailed numbers will be finalised in discussions during the regular General Assembly sessions," Park added.

Following the announcement of the tax revision, the stock market has shown sharp gains, with the main Korea Composite Stock Price Index (KOSPI) hitting all-time highs several times.

- IANS