Gyeongsangnam-do provincial government is investing a total of 750 million won ($550,000) to improve energy efficiency for small and medium-sized enterprises and private buildings.
The province announced Sunday that it will pursue an "SME Energy Diagnosis and Facility Improvement Program" and a "Building Energy Diagnosis and Facility Improvement Program" as the Middle East crisis threatens energy supply stability and high prices and a weak won add to corporate operating burdens.
Under the SME program, energy specialists visit workplaces to analyze energy-loss factors in equipment. When business owners replace low-efficiency equipment with high-efficiency alternatives, the province covers facility improvement costs. SMEs based in Gyeongnam with annual energy consumption below 10,000 tons of oil equivalent (toe) in the previous year are eligible. Eligible equipment includes air compressors, boilers, waste-heat recovery systems and transformers. Each company receives full coverage of diagnosis costs and up to 10.6 million won for facility improvements. The program's total budget of 600 million won is administered through the Gyeongnam regional headquarters of the Korea Energy Agency.
Through the program, the province has supported energy diagnoses at 250 companies and facility improvements at 236 companies through last year, delivering a combined 4.4 billion won in cost savings.
The building program launched in 2024 as the first of its kind nationwide. This year, the province is allocating 150 million won from provincial funds to support 12 sites. Aging apartment complexes more than 15 years old since completion and buildings with a gross floor area of 1,000 square meters or more are eligible for up to 12 million won in subsidies. Buildings in Gimhae and Geochang can receive up to 24 million won, with additional funding from those local governments.
Program details will be posted on the Korea Energy Agency website in April. Applicants can submit applications to the agency's Gyeongnam regional headquarters.
"We aim to ease the energy cost burden on residents and contribute to carbon neutrality by shifting to a low-consumption, high-efficiency energy structure," said Lee Mi-hwa, director of the Industry Bureau at Gyeongsangnam-do provincial government.