The world’s fifth largest crude oil buyer and the second largest buyer of liquefied natural gas announced last week to invest 22.4 trillion Korean won (€14.6 billion) in green technologies. A quarter of the money is earmarked for the electric vehicle and hybrid electric vehicle sector.

The Presidential Committee on Green Growth announced that thirty of South Korea’s largest conglomerates will invest 22.4 trillion Korean won (€14.6 billion) in the country’s green sector over the next three years. This marks an almost 50% increase in investment compared to the 15.1 trillion won (€ 9.8 billion) invested during the past three years.

With 5.3 trillion won (€ 3.4 billion), the development of hybrid and electric vehicles gets the second biggest funding, after 9.9 trillion won (€ 6.4 billion) to be invested into clean energy and 4.3 trillion won (€ 2.8 billion) for next-generational electric device development.

A further 4.2 trillion won (€ 2.7 billion) will be used to establish a smart grid that will improve energy efficiency by electronically monitoring electricity flow in the power grid.

One of the investing consortia, the SK Group, will channel 4.5 trillion won (€ 2.9 billion) (out of 17.5 trillion won (€ 11.4 billion) total investment until 2020) to secure low-carbon energy, including solar, biofuel and rechargeable battery.

Governmental efforts

South Korean President Lee Myung-bak emphasised that the civilian sector and the development of original technology are crucial to the government’s campaign for low-carbon and green growth. The government aims to put South Korea in the forefront of the global fight against climate change. It revealed a plan to cut the county’s carbon emissions by 30% in 2020, a 4% decrease from levels projected in 2005. This fits into the five-year green growth plan adopted in 2009 that calls for 2% of the country’s annual gross domestic product to be spent on the development of green businesses and projects.  

The government is supported in its efforts by the National Assembly who passed the Basic Act on Low-Carbon and Green Growth in January this year. The law requires the government to set concrete targets and a systematic plan for national green growth. It also sets specific stipulations on climate change and an energy target management system, greenhouse gas emission reduction targets, a chief greenhouse gas information center, a low-carbon transport plan and a related tax system.