deputy minister for industry ministry of knowledge economy ... · ministry of knowledge economy,...

2010. 3. 5

Seok ChoDeputy Minister for Industry

Ministry of Knowledge Economy, Korea

Korean Economy : Now and Future Works

A New Vision of Korean Economy : Low-Carbon Green Growth

2

Greening the Industries

3

1. Manufacturing-Centered Industry Structure

3. Declining Growth Potentials

2. Economic Structure Vulnerable to Energy Crisis

Korean Economy : Now and Future Works

4

Ⅰ. Korean Economy : Now and Future works

30

20

10

Korea

28.1%

Germany

23.1%

11.5%

USA

12.4% (‘07)

England

19.4%

Japan

Unit : %

• Production : 528 TriWon• Employment : 1.23 Mil• Export : 291.5 Bil$• Import : 141.8 Bil$

Display(Rank 1)

Shipbuilding(Rank 1)

Petrochemicals(Rank 1)

Semiconductors(Rank 3)

Mobile Phone(Rank 2)

Automobile(Rank 5)

• production, Employment in 2007, Export, import doran in 2008

10 main industries contribute to over 50% of production, employment, export & imports

In world markets, shipbuilding, display, semicondutors, mobile phone lead

Ⅰ. Korean Economy : Now and Future Works

* Industries consuming 38% of total national energy

OECD Korea

3223

38

22

’97 ’06 ’97 ’06

(billion $]

49.666.7 85.6

2004 2005 2006 2007 2008

95.0141.5

△13.0

29.4 23.116 14.6 Trade Balance

Energy Import

0

As Oil Price rises,

Consumer Goods

0.23%p

GDP Increase△0.35%p

Sales Profit△0.2%p

Samsung Economic Research Institute(’07)2008 Energy import(141.5Bil$) more than Total Exports of Semiconductors, Automobiles, shipbuilding(110.9Bil$) 5

* 80% of energy consumption in manufacturing sector

6

Since 90s Economic Growth Rates gradually decreasing

Low Birth Rate & Aging PopulationFurther diminishing production population

Decrease in Equipment & Plant Invest.Shrinking Economic Capital

GDP Growth Rate(%) Production Population Increase (%) Equipment and Plant Investment(%)

7.19.0

5.7 4.6

2.31

1.491.05

0.50

18.06

11.40

4.63 2.40

’71~’80 ’81~’90 ’91~’00 ’01~’07 ’80~’89 ’90~’96 ’97~’00 ’01~’06 ’86~’90 ’91~’96 ’97~’00 ’01~’06

Yearly Export Increase Rates

19.3

31

12 14.4 14.1 13.6

2003 2004 2005 2006 2007 2008-13.8

2009

2010 Korean Economic Growth Forecast

5.5 4.3

4.4 4.5

5 4.7


6

As new growth engines, green transformation of main industries lead national economy

(Private) Adopt new processes for green innovation, plan and practice proactive investments such as developing new green technologies

(Public) Support front-runner R&D and new market creation to mitigate uncertainties and risks of private businesses

Opportunity to Improve Global Competitiveness

Public-Private Partnership Sharing Roles

7


Manufacturing-centered

Industry Structure

National Economy

Vulnerable to Energy crisis

Declining National

Growth Potentials

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1. Transitioning to the Green Growth Paradigm

3. Transformation to Low Carbon Economy

2. Policy Paradigm Change In Green Growth Era

5. Green Transformation of Industries

4. Green Energy Industry Promotion

A New Vision for Korean Economy: Low-Carbon Green Growth

Fostering of Green growth and new growth enginesKnowledge-based, innovation-driven approach

Investment in IT industries and R&DRestructuring of large companies

Investment in semiconductors and automobilesMarket opening to the global economy

Investment in heavy chemical industries Overcoming

Crisis

Ⅱ. A New Vision : Low-Carbon Green Growth

9

2009 Green Policies(Major Progresses)

0.96 mil new jobs 17 New Growth Engines

27 Key Green Tech

Green R&D Investment

(to double by 2012)

3 Strategies and

10 Policies

Jeju Test Bed project

commenced

30 major conglomerates

Announcing 13.3tril won

investment by 2013

To reduce by 30%

by 2020

Relative to BAU

Selected as NAMA

Registry Mediation

Resolution (COP15)

Collective discipline

for Economy, Industry,

Land in General

Green New Deal Policy

Comprehensive Measures for Green Tech R&D

New Growth Engines: Vision and Action Strategy

[Private Sector] Large Investment Plan In Green Industry

Enforced Global LeadershipIn Green Growth

Fundamental Law of Low Carbon Green Growth Approved

Mid-term Greenhouse Gas Reduction Plan Initiated

National Strategy for Green Growth and 5-Year Action Plan

29 Commissioner and

3 subcommittees:

industry, Energy,

Sustainable

Development

PresidentialCommittee onGreen Growth established

10

3 Strategies and 10

Policies finalized

2009. Jan 2009. Jan 2009. Jan 2009. Feb 2009. July

2009. July

Korea as LeadingSmart Gridannounced

2009. Nov 2009. Dec 2009. Dec

Market oriented R&D

Strategic selection of 9 promising techRoadmap for strategic technology development

Promoting commercialization thru new market creation

Establishing infrastructure in supporting new growth engines

Significant Improvement of energy efficiencyTransformation to low energy consuming societyEco-friendly energy mixLow carbon life infrastructure

Improving fossil fuel dependency

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Transformation to low-carbon industrial structureGreening main industries

Production of low power & highly efficient IT goods

Eco-friendly, highly efficient and innovative materials development

Eco-friendly green cars and other transport vehicles development


1. Low Carbon Social/Economic Structure 2. Green Energy Industry 3. Greening the Industries

’07 ’30 ’07 ’30 ’07 ’30

43.4%33%

2.5% 11%26%

40.6%

Low Carbon & High Efficiency Transport System

- Reinforce Fuel Consumption Standards. - Develop Green cars, Intelligent Traffic SystemsImproving Energy Efficiency of Buildings and Electric ProductsGovernment as role Model for Low Carbon

- Supporting 10,000 SMEs for energy consumption Examination and investment in energy efficient equipments

Mandatory generation & use of Renewable Energy- Application of RPS to Energy Suppliers- Supply 1 mil Green Homes- Mandatory Use of Renewable Energy in Public Buildings

- Develop wind & tidal power resources(e.g. Tidal power – Shihwaho, Garorimman)

Early Development of Next Generation Nuclear Power Plants for Future Export

12

Unit:Million TOE


Solar, Wind, Hydrogen Fuel Cell, IGCC

CTL & GTL, CSS(CO2 Collection & Storage)

LED, Energy Storage, Heat Pump, Superconductor, etc

Early Application : Solar, Wind, LED, Electric IT* Comparison to Advanced Nations: 65%(LED)~85%(Elec.IT)

For Next Generation: Hydrogen Fuel Cell, IGCC, Coal·Gas Liquefaction, Energy Storage, CCS

Invest 3 tril. Won in 5 years(’08~’12), Achieve technology level of advanced countries

Set Goals for Technology Development and prepare technology Roadmap for Mid & Long-Term Technology development

Encourage Private Investment through Generating Demand in Public sectors

Renewable Energy: Increase Offshore Wind Energy to 1GW by 2012Green Energy Research Center, “Renewable Korea” (2010), etc.

Green Energy Investment Funds

Prepare Professionals Training programs, Establish Specialized Educational Institutionfor Climate Change, Renewable Energy, and Resources* Goal: 15,000 Specialized Masters and Doctors by 2012

Innovate Green Energy R&D systems

13


Green Tech Invest. Main industry Green innovation

Increase Invest. in Green Tech for New Growth engines

Tax Benefits for Green Tech Industries, Loan Support

Adopt Green Certificate System

Greener Manufacturing Industry

Low Carbon Working Environment through IT

Infra-structure for Intelligent Electricity Network

Industry-specific differentiated green Strategies

Reduced GHG and New Growth engines

Transition to Low Carbon Industrial Structure

14

High Energy Intensive: Steel, PetrochemicalTransportation

: Green cars, Shipbuilding IT : Semiconductors, Display

Eco-Friendly & High Efficiency Materials


“ ”Energy Saving

through Green IT

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1. Green Tech Investment Increase

3. Main Industry Green Innovation

2. Green IT

Greening the industries

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“17 New Growth Engines in 3 areas ”

Ⅲ. Greening the industries

Enhancing Investment of Green Tech in New Growth Engines

Broadcasting and communications IT convergence systems Intelligent robots Nanotechnology Biopharmaceuticals, medical devices Food industry

New and renewable energy Low-carbon energy Advanced water processing LEDs Green transportation systems High-tech green cities

Global healthcare Global education Green financing Content, Software Conventions, Tourism

6

* Nuclear energy, CarbonCapture & Storage Techs

Domestic Production : (’08) 0.5B Won => (’13) 33 Trillion Won=>(’18) 194 Trillion Won

Global Carbon Market Size : (’05) 10T Won => (’10) 150T Won

World Market growth rate 30%,Market Size :

(’07) USD 14B => (’15)USD 100BLED Firms in Korea :

(’04) 174 Firms=> (’08) 469 Firms

Global Water Market : (’04) USD 855.6B (’15) USD 1.5433T

• IT tech applied to world cities- Europe(Intel City), Dubai(Internet

City),Hongkong(Cyber Port)

- Hanoi(Vietnam), Bouinan(Algeria), etc.

• Enhancing Market Dominance in Ships & Ocean Transportation (1st in world MKT,2009)

Encourage Private Funds to Participation

Green SMEs Business Funds Expand Credit Guarantee

Increase Policy Loans for Green SMEs

Increase Financial Support & Private Capital InvolvementSupport Green Tech R&D

Support R&D linked with Business

Support Investment-Linked R&D

Establish Mechanism for Long-Term Funds Using Capital MarketGreen Funds

Measures to Mitigate Investment Risks

Private leadership role and green financing infrastructureCarbon Financing Green Insurance

Green Firms' Overseas Mktdevelopment

Green Capital Infrastructure

Tax Incentives & Loan Support

18


Certifying whether a tech or a project is “Green.”※ Certification areas(Example) :

- Green tech: renewable energy, energy/resource efficiency, recycle, pollution reducing tech, ETC- Green project: renewable energy facility, energy reduction facility, bicycle road, ETC

Firms with Green Tech or Green Project, if certain conditions met,Can be certified as “Green Firms”

Certification Process

Evaluation by public-private “Green certification committee” For expertise & transparency, use private & overseas experts in evaluation processes

Green Certificate Introduction

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Certifying Green Firms

Certifying Green tech & projects

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Concept of Green IT

ㆍPromote Green Approach to IT Products and ServicesㆍMaximize Efficiency of Energy/Resources with Application of IT, Encouraging Transition to Low Carbon Society

World Best Green IT : Product Development and Export Strategies

Achieve Green Manufacture by IT Convergence

Transition to Low Carbon Work Environment through IT Blending

Establish Infrastructure for Intelligent Electric Power Network

Transition to Smart Green Transport & Distribution System

Intelligent Real-time Environment Watch and Early Counter Crisis System

IT Based Green Life Revolution

Core FEMS Technologies for USN-based Production Equipments and Remote Inspection

Gradually Expand Infrastructure for Green Industrial Complexes

u-Manufacturing Process Life Cycle Management System

DESIGN

PRODUCTON

DISTRIBUTION

STOCK

Corporate Systems (e.g. virtual design)

Ontime Part SupplyProcess

Tracking, Monitoring,

Real-time Stock Management

21

Green Industrial Complex


Green Manufacture by IT Convergence

- Increase Energy Efficiency by 8% and - Reduce Carbon Emission by 6.8 mil tons(2013)

with IT-Based Green Production and Green Administration

ㆍIT Tech applied to Industrial Complexes and Manufacturing

Green Manufacturing Using IT

Green Industrial Complex with IT Tech

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Use of Building Energy Management Systems: 8%(Present))20%(2013)

Promote BEMS in Public Areas

Encourage BEMS in Private Areas

Remote Working at Public Institutions

Applying to Private Sectors via Standardization of Interoperability

Use of Portable Devices (Netbooks, E-Paper) and Develop Note-Taking Solutions

Online Administration of Civil Services


Transition to Low Carbon Work Environmentby IT Convergence

- Remote cooperation Environment, Minimize Paper Consumption, etc. - Building Energy Management System : Reduce Energy Consumption by 20%

ㆍLow Carbon Green Work Environment by Changing Working Methods and Distribution of Energy Management Systems

High-Tech IT Based Remote cooperation/Paperless Work

Distribution of Building Energy Management System(BEMS)

23

Intelligent Electric Power Network Infra.

Early Commercialization of User Network Linked to

High-Speed Internet

Industrialization of Intelligent Electricity

Network

Develop Technologies and Standardize Interoperable AMI, High-Speed Internet, and Home Network(‘10~’12)

User Friendly Control ServiceProvide Services Interlinked to Home Network

Review/Revise Relevancy Laws/Systems (e.g. Real-time Electricity Dealing System, etc)

Global Standardization

Core Technology development and Test Services

* Secure Leading Position in Smart Grid Market, Reduce National Energy Consumption by 6%(’30)

Open-type Electric Power Infra• Build Two-way Electricity Market• Create Various Network Services

Test and Supply Smart Meters※ AMI : Alternate Mark Inversion


Infrastructure for Intelligent Electricity Network

ㆍEstablish Intelligent Electric Power Network, ㆍ Promote Efficient Electric Power Management

Develop & Commercialize Environment-friendly Products

Promote IT & Green Tech- Increase Energy Efficiency - CO2 Reduction

IT Industries(Semiconductors, Display,

Consumer electronics)

Industries for Transportation(Cars, Shipbuilding)

Energy-Intensive Industries(Steel, Petrochemical)

Reduce GHG and Secure New Growth Engines

By differentiated Green Strategies of various Industries

24


Product Development and Export Strategies for World Best Green IT

“ ”

[Inter-Enterprise Cooperation]cooperation among Different Industries for Raw Material/Energy Efficiency ; Maximized Use of Bi-Products

[Develop Low Energy Technologies] High-Tech Chemical Materials for Future needs

[Expand Investment in High Energy Efficiency]High Energy Efficiency Achieved by Replacing Aged Equipments, Improved Manufacture Processes

[Eco-Cooperation]Reinforce International cooperation ; Establish Domestic Partnerships[Eco-Technology]Expand Investment in Reducing Energy Consumption / CO₂Emission; Support Green Processing Technologies[Eco-Product]Reduce Energy Consumption by Steel-related industries with Development of eco–friendly, multi-Functional Steel[Foundation for Green Industry]Green Approaches to Industries ; Plan to Foster Rare Metal Industry as Core Element for Green Industrialization

World No.1 Energy Efficiency by Manufacturing Innovations

Promote Combi-Tech. Project for Eco-Industrial Complexes

Energy-intensive Industries (Steel, Petrochemical)

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ㆍDevelop Technologies for Climate Change ㆍInnovate Eco-friendly ManufacturingㆍDevelop new market for Eco-friendly Materials


Maximized Use of Bi-Products and Waste Energy within ComplexImprove Production with Cooperation System Among Different Industries (e.g. Oil-Refining, Elec. Generation, Petrochemical, etc.)

[Case] Eco Industrial Parks of Petrochemical Complexes

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Redundant Methane

Use Redundant Methane as Alternative Fuel※ Save 50 mil won/yr

(Power Plant)Petrochemical

Plant

Wasted Steam from Power Plant Utilized by Petrochemical Plants

Naphtha

Hydrogen

40 Mil Won/yr worth of Reduction; 0.2 Mil TOC Reduction

Use Vacuum Residue as Alternative fuel to B-C oil for Alcohol Production (save 4bil won/yr)

[Efficient Energy Management of Transportation and Facilities]Systemization of Energy and Resource Allocation Monitoring, Improved Effective Distributions etc.

[Improve Production Facilities and Materials]Develop New Processes ; Expand Investment in Energy Reduction Technologies

[Development of Eco-Friendly / High Efficiency Ships and components] CO2 Reduction from Energy-Efficient Shipping Materials (Minimum Resistance) and Environment-Friendly Ship Design

[Expand Support for Low Energy Motor Technology]Technologies for Environment-Friendly Green Cars and Core component development

[Support Supply of Environment-Friendly Hybrid Cars] Tax Benefit to Consumers to Create New Market- Energy Efficiency Standards (established ’09.6.29)

Commercialize Low Carbon Plug-In Car by 2013 Future ShipsㆍMaritime Systems

Industries for Transportation

27

ㆍ Resolve CO2 Emission ㆍ Encourage Investment in Green Industry by Interlinking Industries


[Case] Fuel-saving“Wing-tailed ship”Technology

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Electrical currency stabilizer wing is added to the front part of propellers, Which save 5% of fuel consumption by maintaining water flowExtensive application to 12 Large Crude Oil Carriers & 12 Containerships

SORAS a system that will give safer routing for ships while also saving fuel The optimum route selected by SORAS can reduce fuel consumption amounting to a saving of $10,000 on a trans-pacific round trip.

Applying laws of lifting force, this ship re-utilizes turning flow generated by spinning propellers.It saves ~6 % of fuel consumption equivalent to approx. USD 2.4 mil for a large containership which consumes over 300 tons per day

[Efficient Energy Management]Utilities Optimization System of High-Efficient Equipment

[Expand Energy Efficient Production Process]Expansion and Development of Low-Price TFT LCD Production Process

[Increase in Eco-Friendly Products]Production Expansion of Low Electricity/Environment-Friendly PL Green Display

[Greenhouse Gas Technology]Green Display Forum [’09.5.21] for Exchange of Greenhouse Gas Technology

[Efficient Energy Management]Efficient Energy Management System and Low-Electricity Semi-Conductor Equipments

[Expand Energy Efficient Production Process]Expansion and Development of Low-Energy / High-Efficient Production Process

[Eco-Friendly Production Increase] Low-Electricity, High-Efficiency System Semiconductor

[International Collaboration]Environmental Safety from Civil/Govt Conference among Semiconductor Producing Nations

Super Efficient Green Semiconductor Lead Aqua-Green Window Display Market

IT Industries (Semiconductor, Display)

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ㆍDevelop new businesses from Alternative Energy, core componentsㆍLead International Environment StandardsㆍAdvance into Green Markets in advanced countries


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