Songdo in Incheon City of South Korea has been picked for establishing the headquarters for the United Nations' Green Climate Fund.

South Korea is seen as a bridge between developed and developing nations of the world.

The new United Nations Green Climate Fund has been set up to manage billions of dollars to help developing nations in tackling climate change issues, such as greenhouse gas emissions, droughts, floods, heat waves and soaring sea levels.

In the year of 2009, developed countries agreed to raise funds to tackle climate issues. Around $10 billion are collected per year, and there are plans to increase the fund to $100 billion from the year of 2020.

International charity Oxfam welcomed the United Nations' announcement to house the headquarters of the fund in South Korea.

The announcement, however, discouraged the authorities of the former German capital city of Bonn, which is the home to the United States' Climate Change Secretariat, as they had hoped that Bonn would be selected for the headquarters of the fund.

Apart from Germany and South Korea, Namibia, Mexico, Switzerland and Poland were also in the race.