A new UN fund to manage billions of dollars to help developing nations combat climate change will be based in South Korea
The Green Climate Fund is to be sited in Songdo, Incheon City, the board of the fund said.
Germany, Mexico, Namibia, Poland and Switzerland had also sought to be the headquarters.
Under definitions laid down by the 1992 UN climate convention, South Korea is regarded as still being among the developing nations.
Developed nations agreed in 2009 to raise climate aid, now about $10bn a year, to an annual $100bn from 2020 to help developing countries curb greenhouse gas emissions and cope with floods, droughts, heatwaves and rising sea levels.
So far, there has been no discussion by the fund about how to raise $100bn, from public and private sources. The fund is now empty and the economies of many developed nations are struggling.
The decision will be put to environment ministers for approval at a meeting in Doha, Qatar, from 26 November to 7 December.
Oxfam welcomed the decision to site the fund in South Korea and urged action to fill it.
"South Korea must work to get all developed countries to make immediate pledges to the Green Climate Fund at Doha," Oxfam climate change program manager David Waskow said.
"The millions of poor people who need help coping with extreme weather events and destroyed harvests cannot afford for another UN Climate Conference later this year to close with the question of funding for adaptation still unresolved," he said.
South Korea has been favoured partly as a bridge between rich and poor nations, diplomatic sources said.