The South Korean government will overhaul its taxation scheme related to carbon emissions and set up a fund designed to fight climate change as part of its drive to achieve carbon neutrality by 2050.

In order to launch a "proactive" response to the climate crisis by adopting new development strategies, instead of focusing on "adaptive" emissions reduction, Seoul will establish the tentatively named "Climate Response Fund".

The country's carbon pricing system will be revised after reviewing related taxes, financial burdens and carbon-emission trading scheme.

State budget and tax benefits related to carbon neutrality will be expanded next year to offer incentives to businesses that contribute to meeting the carbon-reduction goals.

As part of state support to foster green industries, the government will double its financial aid to the sector by 2030, and continue to lend a helping hand to companies that transition into a low-carbon industrial structure.