AMCHAM PresentationTuesday, 09/07/06 11:30 ~ 13:30Lotte Hotel Charlotte Room(36thFL.)

ContentsContentsContentsContents

Environmental Mgmt. Conditions &

status

Environmental Mgmt. Conditions &

statusⅠⅠ

Mid to Long-Term Environmental Policies Mid to Long-Term Environmental PoliciesⅡⅡ

Major Policy Implementations Major Policy ImplementationsⅢⅢ

1. Environmental Management Conditions1. Environmental Management Conditions

2. Pollution Status2. Pollution Status

Environmental Mgmt. Conditions &

Status

Environmental Mgmt. Conditions &

StatusⅠⅠ

1. Environmental Mgmt. Conditions1. Environmental Mgmt. Conditions

Environmental Conditions

80

60

40

20

0

S. Korea

100

Advanced countries

1.6

Envt. expenditure/GDP (%)

2.4

Nature preservation area (%)

7.115

60

30

No. of species (thousands)

85

37

Water quality standard compliance (%)

78

Sewage coverage (%)

97

22

32

NOX in metropolitan area (ppb)

46% of total population & vehicles in Seoul Metropolitan Area (11.8% of total land area)

※ Population density: 1,830/ ㎢ (4 times the nat’l average)

※ No. of vehicles: 7,110,000 (approximately 15 mil. nationally)※ Vehicle traffic per ㎞ : 290 (4.7 times higher than Tokyo; 8 times higher than Paris)

Small land & high population density (World’s 3rd, 492

persons/㎢ )

Growing environmental stress from

rapid industrialization and urbanization

FranceFranceU.S.U.S.KoreaKorea

SO2

Urban waste

151.1

1,836

19.7 17.2

203 522

Pollution factorsPollution factors

Fertilizer & pesticide use 435 114 231

(kg/ha)

Decrease of forested areas & tidal flats due to excessive developmentDecrease of forested areas & tidal flats due to excessive development

Forested areas: 65,665 ㎢ in ’92 → 64,885 ㎢ in ’04 (annual decrease of

78 ㎢ )

Tidal flats: 3,203 ㎢ in ’87 → 2,550 ㎢ in ’05 (annual decrease of 36 ㎢ )

Additional 3,838km² of urban

land expected to be used in

the next 20 years

Farmland(889 ㎢ )

Forested areas(804 ㎢ )

Urban land(1,475 ㎢ )

National land development

(’92-’04)

National land development

(’92-’04)

Changes in Environmental Mgmt. Conditions Changes in Environmental Mgmt. Conditions

Rapid industrialization & urbanization Rapid industrialization & urbanization

Environmental pollution originated from economic growth and rapid

industrialization & urbanization

Development vs. Preservation & Environment vs. EconomyDevelopment vs. Preservation & Environment vs. Economy

Social conflicts rising from large-scale development projects

(Ex.: Saemangeum Reclamation Project)

Call for eased environmental regulations due to high oil price and difficulties in biz mgmt.

More leisure time with the inception of 5 day work weekMore leisure time with the inception of 5 day work week

More environmental stress and degradation from increased outdoor activities

Environment, core factor in national competitivenessEnvironment, core factor in national competitiveness

Paradigm shift for environmental and economic efficiency and resource recycling society

Advanced countries’ strengthened environmental regulation on products

2005 ESI Rank2005 ESI Rank

ComponentComponent AdvancedAdvanced VulnerableVulnerable

Environmental Environmental SystemsSystems

Water quality Water quality (7th)(7th)Percentage of absolute Percentage of absolute preservation zone preservation zone (131st)(131st)Nox concentration in air Nox concentration in air (127th)(127th)

Reducing Reducing Environmental Environmental

StressesStresses

Waste recycling rates Waste recycling rates (10th)(10th)

Coal consumption per populated Coal consumption per populated land area land area (144th)(144th)Fertilizer/Pesticide consumption Fertilizer/Pesticide consumption (138th)(138th)

Reducing Reducing Human Human

VulnerabilityVulnerability

Infant mortality rate Infant mortality rate (7th)(7th)Percentage of Percentage of undernourished population undernourished population (1st)(1st)

Deaths from natural disaster Deaths from natural disaster (122nd)(122nd)

Social & Social & Institutional Institutional

CapacityCapacity

Environmental Environmental governance governance (23rd) (23rd) Private sector Private sector responsiveness responsiveness (18th)(18th)

Percentage of renewable Percentage of renewable energy energy (118th)(118th)Percentage of preservation Percentage of preservation area area (117th)(117th)

Global StewarGlobal Stewardshipdship

Participation in int’l Participation in int’l collaborative efforts collaborative efforts (20th)(20th)

Green house gas emissions Green house gas emissions (99th)(99th) Contribution to funding of global Contribution to funding of global environmental preservation environmental preservation projects projects (142nd)(142nd)

World Economic Forum Environmental Sustainability Index World Economic Forum Environmental Sustainability Index

2. Pollution Status2. Pollution Status

Water Quality

`̀

Tap water source quality change in

4 major rivers

Tap water source quality change in

4 major rivers Target water quality achievement rate

of national rivers

Target water quality achievement rate

of national rivers

5.0

4.0

3.0

2.0

1.0

0.0

50

40

30

20

10

BOD (mg/l)

(%)

’94 ’96 ’98 ’00 ’02 ’05 ’94 ’96 ’98 ’00 ’02 ’05

Nakdong River Yeongsan

RiverGeum River

Han River

4.6

2.6

1.3 (Han)

1.0 (Yeongsan)

0.8 (Geum)

1.9 (Yeongsan)

1.5 (Geum)

1.2 (Han)13.8

42.3

NOx pollution in Seoul and

metropolitan areas

NOx pollution in Seoul and

metropolitan areas

0’96 ’98 ’00 ’02 ’05

(ppm)

0.02

0.023

0.033 (Seoul)

0.026 (Metropolitan area)

Municipal waste treatmentMunicipal waste treatment

0

’94 ’96 ’00 ’02 ’04

(ton/day)

10,000

20,000

30,000

40,000

50,000

’98

Landfill disposal

Incineration

Recycling

47,116

8,927

2,025

24,588

7,244

18,1950.01

0.03

0.034

Air Quality Waste Treatment

1. Vision and Goals of Comprehensive Plan for Nat’l Envt.1. Vision and Goals of Comprehensive Plan for Nat’l Envt.

2. Mid to Long-Term Environmental Mgmt. Strategy2. Mid to Long-Term Environmental Mgmt. Strategy

3. Major Environmental Performance Indicator for 20153. Major Environmental Performance Indicator for 2015

Mid to Long-Term Environmental

Policies

Mid to Long-Term Environmental

PoliciesⅡⅡ

Maintaining and increasing environmental capacity Maintaining and increasing environmental capacity

of the Korean Peninsulaof the Korean Peninsula

Establishing a society for realizing environmental equity

among & within generations

Creating a sustainable resource management system

Building a stable, eco-friendly economic system

Maintaining and increasing environmental capacity Maintaining and increasing environmental capacity

of the Korean Peninsulaof the Korean Peninsula

Establishing a society for realizing environmental equity

among & within generations

Creating a sustainable resource management system

Building a stable, eco-friendly economic system

Building a more sustainable & advanced nationBuilding a more sustainable & advanced nationVisionVision

GoalsGoals

1. Comprehensive Plan for National Environment 1. Comprehensive Plan for National Environment

2. Mid to Long-Term Environmental Mgmt. Strategy2. Mid to Long-Term Environmental Mgmt. Strategy

Conservation of sustainable nature

Efficient management of natural resources

Establishing a safe and comfortable living environment

Building interdependent relationship between economy and environment

Creating a basis for environmental equity

Enhancing environmental cooperation in Northeast Asia

Taking the lead in global efforts for sustainable development

Key environmental mgmt. tasks

3 Pillars of national ecology:

Establishing integrated eco-network in the Korean Peninsula

- Baekdu Daegan mountain range, DMZ, and island & coastal areas

5 major environmental mgmt. regions: Implementing region-specific environmental management

- Seoul metropolitan area, Chungcheong region, Honam region, Yeongnam region, and Gangwon region

Environmental mgmt. of national land

Baekdu Daegan

Island,

Coastal

area

DMZ

NO2 density in Seoul (ppb)

No. of species(thousand)

Nature preservation area(%)

Population w/ public Sewage treatment (%)

3030

6060

4040

90 (U.K. ’03)

1515

7.17.1

1010

14.6 (OECD average ’03)

83839090

78.878.8

92.8 (Germany ’02)

32(’09)32(’09)

2222

22 (Paris ’01)

3838

2003 2008 (Target) 2015 (Target)Advanced countries

3. Key Environmental Performance Indicator for 3. Key Environmental Performance Indicator for 20152015

1. 2006 Major Environmental Policy Tasks1. 2006 Major Environmental Policy Tasks

2. Environmental Health Policy for Public Health2. Environmental Health Policy for Public Health

3. GHG Emission Reduction Policy3. GHG Emission Reduction Policy

4. Increased sustainability of Economic Activities4. Increased sustainability of Economic Activities

Major Policy Implementations Major Policy ImplementationsⅢⅢ

Receptor-orientedenvironmental health policy

Enhancing Protection of vulnerable people’s health

Protecting peoplefrom hazardousmaterials in the living environment

Environmental Plan before development

Strengthening environmentalhealth policy Preservation

of healthy landenvironment

Building clean &

comfortableliving envt.

Global sustainable

development

2006 Environmental Policy Tasks

2006 Environmental Policy Tasks

Clean & safeindoor air qualitymanagement

Improvementof environmentalimpact assessmentsystem

Establishing eco-network in theKorean Peninsula

Securing nat’lbio-resourcesand diversity

Blue sky andclean air

Clean & safewater

Safe drinkingwater supply

Establishing sewerage infrastructure

Groundwaterquality mgmt. & soil preservation

Comfortableliving envt.

Establishingbasis for sustainable devt.

Eco-production & consumption

Promoting futureenv’l technology

Waste recyclingsystem

Sustainable water use system

Fun environment education

Strengtheningmeasures for UNFCCC

Measures for the linkage of environmentand trade

Enhancing leadership in Int’l environmentalcooperation

Beautiful Environment & Healthy FutureBeautiful Environment & Healthy Future

Establishing SustainableRecyclingeconomy

Environmental Health 10 Year Comprehensive Plan Environmental Health 10 Year Comprehensive Plan

Reducing by half the population exposed to environmental pollution

by 2015

Reducing by half the population exposed to environmental pollution

by 2015

2. Environmental Health Policy for Public Health

2. Environmental Health Policy for Public Health

Protecting children from environmental pollutionProtecting children from environmental pollution

Monitoring system of hazardous material in children’s goods (’06-)

Measures for chemical material in playgrounds (’06)

Examining the relation between pollutionand birth defects of nursing mothers, babies, and infants (’06-’10)

Health impact assessment of infants & children

Health impact assessment of infants & children

Reducing exposure to hazardous materials

Reducing exposure to hazardous materials

Examining mercury concentration in fish & shellfish (’06-’08)

- Examining causes of atopic dermatitis, asthma, and growth disorder

- Providing advisory for daily maximum intake for children and others

- Regulation and ban on harmful materials

Environmental Health Policy ImplementationEnvironmental Health Policy Implementation

Reduction of hazardous chemicalsReduction of hazardous chemicals

Strengthening safety mgmt. of hazardous substancesStrengthening safety mgmt. of hazardous substances

Establishing treatment system for the eradication of PCBs by 2015

※ Examination on PCB pollution of 4,000 transformers in schools and hospitals (’06)

Using GPS & RFID technology on vehicles transportingtoxic materials and crack down on illegal traffickingof unregistered toxic materials on the Internet

Designating substances including malachite green, formaldehyde, lead, and 2 bromine compounds as

restricted or banned materials

Enactment of Special Act on POPs Treatment (’06-)-Regulation criteria for production, imports, use,and discharge of POPs

CzechRepublic

GermanyU.K. U.

S.Japan

16%19%

-25%-13%

-5.5%

* Compared with 1990 level* Compared with 1990 level

Biggest CO2 emission increaseamong OECD countriesBiggest CO2 emission increaseamong OECD countries

CO2 emission in ’04 (IEA)CO2 emission in ’04 (IEA)

5,652

3,270

1,503

U.S.

China

Russia...

1st

2nd

3rd

Unit: million tonUnit: million ton

(Feb. 16, 2005)(Feb. 16, 2005)

S. KoreaS. Korea 452 9th9th

Pressure for mandatory reduction in the 2nd commitment period

(2013-2017)

Estimated GDP decreaseupon mandatory reduction:

3.4 trillion Won

※ Scenario: 10% reduction of estimated CO2 emission of 2020

SouthKoreaSouthKorea

99%99%

Korea: world’s 9th largest CO2 emitter Korea: world’s 9th largest CO2 emitter

CO₂Emission CO₂Emission

3. GHG Emission Reduction Policy3. GHG Emission Reduction Policy

Korean government’s measures for UNFCCCKorean government’s measures for UNFCCC

- 1st phase (1999-’01): 36 tasks including reduction scheme, GHG reduction base system development, and technology development

- 2nd phase (’02-’04): 84 tasks including negotiation capability enhancement, response measures for Kyoto Mechanism, and PR to the public

- 3rd phase (’05-’07): 90 tasks including UNFCCC implementation projects, GHG reduction projects, and climate change adjustment project

Ministry of Environment carries out climate change impact assessment, measures for climate change adjustment, waste reduction and air quality improvement scheme.

Comprehensive measures and action plans for UNFCCC

Implementation of Environmental TasksImplementation of Environmental Tasks

Future tasks Future tasks

- mock emission trading of petrochemical and

semiconductor industry (twice a year, starting ’06)

Preparation for GHG emission trading

GHG emission management system - Calculation of emission volume and factor for

electricity generation and other industries- GHG emission estimation and reporting by cement

and chemical industry, paper manufacturers

Climate change adjustment roadmap for each field of industry and environment (’06.6-’07.6)

Expansion of voluntary GHG reduction in businessestablishments and transportation

Early entrance to carbon market through implementation of Kyoto Mechanism and utilization of accumulated know-how Early entrance to carbon market through implementation of Kyoto Mechanism and utilization of accumulated know-how

Active participation in international efforts for sustainable economic growth and preservation of global environment

Minimization of economic impact through enhancement of domestic companies’ capability to adjust to climate change

Increasing eco-product market revenue by 16 trillion Won by 2010

Mandatory procurement bypublic offices ( ￦ 0.26 trillion in

’04 → ￦ 1.4 trillion in ’10)

Preparing green procurement ordinances

Establishing eco-product information system (’06.8)

Voluntary green consumption agreementwith industries

Development & supply ofcompany-specific eco-products

Eco-product exhibition & green purchasing promotion fair

Inclusion of more items foreco-label certification

Inclusion of more items forenvironmental declaration of products

Support for sustainable business mgmt.

Eco-friendly production & consumption

Eco-friendly production & consumption

`Green ProcurementGreen Procurement `Green ConsumptionGreen Consumption `Green ProductionGreen Production

4. Enhancing Sustainability of Economic Activities

4. Enhancing Sustainability of Economic Activities

Environment industry figuresEnvironment industry figures Envt. industry nurturing strategy

Envt. industry nurturing strategy

Domestic environment industry

- Mostly SMEs (70% w/ less than ￦ 1 bil. in capital)

- Still in infant stage except for end-of-pipetreatment

※ Exports of 177 companies in ’05: ￦ 995.4 bil.

More support for domestic companies abroad

- Top priority: businesses with competitiveness

(sewage treatment, desulfurization, CNG buses)

- Dispatching envt. industry cooperation team

(China) and opening a local branch (Vietnam)

- Reviewing conditions for entering markets of

India and the Middle East

Redefining the concept of envt. industry

End-of-pipe treatment industry

Technology & knowledge-based service industry

Technology & knowledge-based service industry

- Introduction of environmental consulting

with environment review & eco-management

services

Global environment industry

ChinaWorld

3%

Asia

7%

18~20%

[Annual growth]

Advanced

countries 85%

Total$589 bil.

Total$589 bil.

S. Korea 2%[Market share]

Nurturing Domestic Environment IndustryNurturing Domestic Environment Industry

Conclusion Conclusion

Korea is making utmost efforts and investments for balanced development of economy & environment and regions under limited natural and social conditions.

For sustainable development of Korea, both the government and economic players should put in efforts and work with each other.

We invite U.S. companies in Korea to join the efforts of making our society more sustainable.