South Korea’s new $744 billion plan to combat climate change over the next decade is facing its first test of financial credibility, as the government seeks to marshal capital toward ambitious projects while limiting associated risks.

Announced on Oct. 7, the Korea-Green Transformation (K-GX) strategy combines $148.8 billion (200 trillion won) in fiscal resources with more than $587.6 billion (790 trillion won) in climate financing through 2035.

Companies separately announced approximately $163.6 billion (220 trillion won) in planned projects intended to reduce industrial emissions and strengthen clean energy industries.

Much of this framework predates the announcement. The government expanded its