Korea Aims to Join Top 5 Countries in Renewable Energy Sector

The Korean government recently revealed a plan to become one of top five countries in renewable energy sector by 2015 as part of the government's policy vision of "low carbon, green growth."

As part of the green growth policy, Korea aims to transform the country's existing fossil fuel-based, environment-threatening economic growth structure into a clean energy-based one.

Currently, the international renewable energy market has had an average annual growth rate of 28 percent. The international renewable energy market recorded $162 billion in 2009. The Korean government predicts it will grow more than $1 trillion in 2020, equal to the current volume of the worldwide automobile industry.

The Ministry of Knowledge Economy announced a set of renewable energy development strategies and blueprint to become one of leading countries in renewable energy sector in October last year. According to the plan, the ministry will invest a total of 40 trillion won by 2015 to become one of top five countries in the renewable energy sector. According to the government's forecast, Korea's renewable energy industry will become one of Korea’s leading industries, worth $40 billion in 2015, up from $4.6 billion in 2009.

Korea's renewable energy industry has developed rapidly in recent years, with the government contributing nearly two trillion won over the last three years, with the government budget for the sector exceeding one trillion won for the first time ever in 2011.

* Seoul to invest in solar, wind energy 

According to research by the Ministry of Knowledge Economy, Korea had a total of 146 renewable energy enterprises as of 2009. Among them, 79.5 percent are small and medium-sized enterprises (SMEs) and 53 firms are start-ups, contributing to job creation.
The Korean government's renewable energy development strategy is focused on incubating solar energy, wind energy and fuel cell industries. 

The government plans to nurture the solar energy sector into a leading industry, just as they have nurtured the semiconductor industry. The government will concentrate on developing core technology, parts and materials at lower prices to make up for a late start in the secotr.

Korea also aims to become one of leading countries in wind power industry, backed by the country's world-leading shipbuilding and plant industries. The country supports the localization of core parts and materials so firms can focus on the large-scale marine wind power businesses.

* Seoul aims to achieve co-growth among SMEs and large firms

The Korean government plans to inject 20 billion won to build up to five test-beds to develop the solar and wind power industries by the end of 2011. It also plans to build 100-megawatt marine wind power complexes in Buan and Yeonggwang in Jeolla Province by 2013. Additionally, it aims to incubate up to 50 promising enterprises in order to achieve its goal of $100 million worth of exports in renewable energy industry by 2015.

To successfully become one of the top five countries in the renewable energy industry, Korea needs to develop core original technologies to dominate the global market. 

For this reason, the government will select ten core original technologies and invest 1.5 trillion won in them by 2015. To further strengthen the development of core parts and materials for the sector, the government will increase the volume of its support by more than 50 percent by 2012 from its current level.