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Korea’s Strategic Roadmap of Technology and Industry

under Green Growth Paradigm

PresidentProf. June Seung Lee, Ph.D

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Green Growth and Green IndustryGreen Growth and Green IndustryI.I.

Current Situation and Investment Target Current Situation and Investment Target II.II.

Green Technology R&D RoadmapGreen Technology R&D RoadmapIII.III.

I. Green Growth And Green TechnologyI. Green Growth And Green Technology

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Changes in Future Society and Need of Green Growth

Three trends threatening our future – Global Warming (Hot), Globalization & Growing Middle Class (Flat), and Population Growth (Crowded)

Combination of all these accelerates climate change and increases demand on natural resources and deepens energy polarization.

Need to respond resource crisis and environmental problems Need to respond resource crisis and environmental problems

Regulatory support for the efficient use of resources and minimization of environmental pollution.

Regulatory support for the efficient use of resources and minimization of environmental pollution.

Need to set a policy direction on GT R&D according to the environmental changes.

Need to set a policy direction on GT R&D according to the environmental changes.

ResponseResponse

FutureThreatFutureThreat

PreoccupancyPolicy

PreoccupancyPolicy

Industry-oriented economic growth reached a limit in terms of environment and economy.

Develop a new growth engine through GT and environmental regulation.

Future-oriented low-carbon green growth was presented as a new national vision to overcome resource crisis such as high oil price and climate change. (President Lee Myungbak, in his Liberation Day speech)

I. Green Growth and Green Technology

Green growth is not an option but a must; However, Korea is facing a long way ahead.

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‘Greenization’ of industries to be accelerated

- High efficient, low pollution vehicles (Hybrid, Electric, H2, etc.) : 0.7% in 2007 → 31.4% by 2020 - Rechargeable Battery (Li-ion, Redox flow) : 30.5% in 2007 → 63.0% by 2020

Global market to show an annual growth rate of 10.2% - 1.5 trillion in 2007 → 5.7 trillion by 2020

Domestic market to show an annual growth rate of 13.2% - 37 billion in 2007 → 230 billion by 2020

Global Market

High Eff., Low Poll., Vehicles

Rechargeable Battery

’07

0.7%

30.5%24.3%

47%31.4%

63%

Domestic Market

’07 ’12 ’20

(Tri. Dollar)

3

6

1

’20’12

Market Outlook of Green Industry I. Green Growth and Green Technology

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Traditional GT : new & renewable energy, high energy efficiency technology, environmental technology, climate change adaptation technology.

Technet : Bipartisan policy network of USA

Concept of Green Technology

Traditional GT refers to eco-friendly resource technology such as renewable energy, clean energy, etc. (Technet, 07)

The concept of GT has expanded to include technological trends that support environmental sustainability and economic growth together.

Fusion GT refers to low carbon, eco-friendly technology that drives low carbon green growth through making a synergetic fusion between IT·BT·NT, etc and between these new technologies and existing products & industries.

I. Green Growth and Green Technology

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Making the best of what Korea is doing well such as IT,BT,NT to the development of fusion GT, and being able to overcome the limitations of existing technology and creating new markets.

Expansion to Fusion Green Technolgy

Technology

Industry

Overcoming limitations of

existing technology

Overcoming limitations of

existing technology

Traditional Green Technology &

Industry

Traditional Green Technology &

Industry

Enhancement of existing industry

Enhancement of existing industry

Creation of New Industry &

Employment

Creation of New Industry &

Employment

Drawing fusion technological characteristics, creative and innovative, out of

traditional green technologies which focus only on individual purpose,

function and use.

Drawing fusion technological characteristics, creative and innovative, out of

traditional green technologies which focus only on individual purpose,

function and use.

Replacing existing technology with alternative ones, for example, production & storage of hydrogen using bio-mass & sunlight.

Creating New fields via cutting-edge fusion technology like electrical power IT, new energy, etc.

I. Green Growth and Green Technology

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Pending Issues Roles of GT

Emerging low carbon green industry

Market for carbon emission reduction and green industry

expected to grow to 3 trillion won by 1220.

Green Technology Race to be more competitive among

advanced countries like the U.S., Japan and EU.

Shifting to low carbon industries via greenization of industry & space and zero-emission technologies. (Intelligent transportation & logistics, city revitalization, and virtual reality)

Worsening Energy Problems

Fossil fuel running out, Korea importing 97% of its energy.

Energy consumption per capita increases 5.8% per annum.

Improving Energy Independence by energy source and energy efficiency technologies.(Solar cell, atomic power, lighting LED, Intelligent grid(electrical power IT))

Adapting to Changes by Disturbed Ecosystem

The average temperature of Korea rose about 1.5% over

the last 100 years, while the world gets 0.74 warmer. ℃As the average temperature of the world gets 2 higher, ℃

15~40% of flora and fauna disappear.

Protecting ecosystem by preemptive investment into environmental protection technology.(prediction of climate change, CCS, water quality management, control of toxic materials)

Roles of Green Technology I. Green Growth and Green Technology

II. Current Situation & Investment TargetII. Current Situation & Investment Target

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Green Competitiveness refers to the national competitiveness to realize green growth via low-carbon and green industry.

11th11th

8th8th

13th13th

Overall Green Overall Green Competitiveness Competitiveness

Low-Carbonization Low-Carbonization Index Index

Green Green IndustrializationIndustrialization

New, renewable energy application &

energy efficiency

Science & technology,

environmental management

WeaknessWeakness

StrengthStrength

Classification Japan Germany U.K. U.S.A. Korea OECD

- Green Competitiveness Index (Rank) 112.8 (1) 109.6 (3) 109.0 (4) 103.2 (7) 97.4 (11) 104.3

- Low-Carbonization Index (Rank) 114.0 (1) 105.2 (6) 108.3 (3) 101.4 (9) 88.2 (13) 104.3

- Green Industrialization (Rank) 110.9 (1) 110.8 (2) 108.5 (4) 103.8 (7) 102.3 (8) 103.8

※comparing with major 15 countries

Korea’s Green Competitiveness II. Current Situation & Investment Target

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Steady Increase of Green House Gas Emission

Inclination to Import New technology Rather than Develop One

Korea’s leading GT is around 60% of

that of advanced countriesRenewable energy (62%)atomic energy& nuclear fusion

(64%)Hydrogen & fuel cell (55%), etc.

Level of GT Lower than Advanced Countries

16th in the world for green house

gas emission 10th in the world for CO2 emission

Import Dependency: Solar Power 75%, Wind Power 99.6%

Need to Implement the GT Need to Implement the GT

Development Strategy in Development Strategy in

National ScaleNational Scale

Korea’s Overall Conditions II. Current Situation & Investment Target

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Resource circulation and environment purification technologies do not meet international standards.

Few information DB for the evaluation of environmental hazards.

Not enough response capacity to climate change and resource circulation system in regard to domestic circumstances.

Core original technology of solar cell not secured, and need to improve localization of manufacturing equipment for greater price competitiveness and to secure an economic scale of production.

Not enough preparation for commercialization and export, to preoccupy rapidly-growing new, renewable energy market.

Intelligent grid or electrical power IT needs governmental support to build a verification complex.

For IGCC, not enough infrastructure like plants and not enough incentives to attract power companies.

Insufficient verification, distribution & core original technology for enhancing energy efficiency

Levels of eco-friendly city and city revitalization technology are 20~50%,

so that technological competitiveness is in urgent need.

Need to introduce certification system and reinforcement of regulatory standard in order to

enhance the greenization of key industries.

Urgent need to enhance green competitiveness of key industries and acquire living-based technology.

Issues by Type of GT II. Current Situation & Investment Target

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Traditional GT R&D Fusion GT

MEST

MKE

MoE

MLTM

Mid & long-term, fundamental & original technology research and training; atomic energy & nuclear fusion research

Research on energy sources such as developing new & renewable energy and enhancing efficiency of electrical power; research on high efficiency green-tech.

Environmental green technology such as

reducing air pollution, improving water

quality and waste treatment.

Research on eco-friendly method of

construction and green technology in the

field of marine energy.

Base-type Fusion GTFundamental technology applicable to every field through the fusion between IT, BT and NT.

Mission-type Fusion GT

Technology to create added vale in the

industry and products specifically

connected to each ministry’s mission

through the fusion of IT, BT and NT.

Selection of major fields for FGT in close consultation with related ministries /

Implementation of R&D by the ministries according to their division of roles.

Governmental Implementation by Department II. Current Situation & Investment Target

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Plans to double the R&D investment on green technology by 2012.

R&D investment on green technology: from estimated 1 trillion won in

2008 to 2 trillion won by 2012. 7.3 trillion won over 5 years, which is annual growth rate of 19%.

Strategically Focus on fusion green technology.

Plans to double the R&D investment on green technology by 2012.

R&D investment on green technology: from estimated 1 trillion won in

2008 to 2 trillion won by 2012. 7.3 trillion won over 5 years, which is annual growth rate of 19%.

Strategically Focus on fusion green technology.

R&D Investment TargetR&D Investment Target

Investment Target of Green Technology

2007 2012

Total investment will be

more than doubled

“Green Technology includes IT, BT, NT, CT

and goes beyond all these combined.” (Pr. Lee Myung-bak, the Liberation Day speech)

II. Current Situation & Investment Target

III. Green Technology R&D RoadmapIII. Green Technology R&D Roadmap

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Area of Strategic Focus

• Efficiency

Prediction Technology

• Climate change prediction and evaluation

• Alternative energy

Alt. EnergyResource

Technology

High Efficiency Technology

Post-Process

Technology

• Environmental load reduction and recycle

Application Technology

• Knowledge based pollutant free industry

Prediction Production Consumption

III. Green Technology R&D Roadmap

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Picking Technologies of Strategic Focus

Eco-Friendly Products &

Process

Environmental Health

Environmental Recovery

Resource Circulation

Water Treatment

Pollution Prevention

Non-CO2

Control

Future Energy (Nuclear Fusion · atomic power), CO2 Absorbent

Information based pollution free industryInformation based pollution free industry Information based pollution free industryInformation based pollution free industry

Climate Change Climate Change TechnologyTechnology

Climate Change Climate Change TechnologyTechnology

Monitoring & Prediction of Climate ChangeImpact Evaluation and Countermeasures

Monitoring & Prediction of Climate ChangeImpact Evaluation and Countermeasures

Green Home

Green Car

Energy-saving Home

Applicances

High-capacity Generation

Energy EfficiencyEnergy Efficiency

Bio Energy

Hydro Power

Maritime Energy

Geothermal Energy

Renewable EnergyRenewable Energy

CO2 Capture

& Storage

Gas To

Liquids

(GTL)

Green EnergyGreen Energy

Energy Storage

LED

Electric Power IT

Solar Power

Wind Power

Hydrogen & Fuel Cell

Coal Liquefaction &

Gasification

Basic Technology like IT, BT, NT & Other Industrial TechnologiesBasic Technology like IT, BT, NT & Other Industrial Technologies

Environmental TechnologyEnvironmental Technology

III. Green Technology R&D Roadmap

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To set investment direction in consideration of current investment scale, technologies and the timing of commercialization.

R&D investment on GT of strategic focus will be more than doubled by 1012 from 1.4 trillion won in 2008.

Short-term, intensive

investment

Technologies that require timely market entry by short-

term verification, distribution.→ silicon solar cell, advanced reactor, lighting LED, high-efficiency, low pollution vehicles (hybrid cars, etc.)

Mid-term,

intensive

investment

Technologies needed to get dominant position in the market for mid-term competitiveness.→ High efficiency low pollution vehicles (electric & fuel cell), virtual reality, green process, rechargeable battery, non-CO2 treatment, water quality management, alternative water resource, waste cut-down

Long-term,

intensive

investment

Technologies that needs to be nurtured as the world leading ones. → fast reactor, nuclear fusion reactor, hydrogen energy, fuel cell, eco-friendly plant growing, IGCC, urban revitalization, eco-friendly building, intelligent grid, CCS, toxic materials, prediction, evaluation & adaptation of climate change

Long-term,

Incremental

Investment

Fundamental and original technologies that must be acquired by steady investment. → non-silicon solar cell, bio energy, intelligent transportation & logistics

’08 ’12 ’20 ’30

’08 ’12 ’20 ’30

’08 ’12 ’20 ’30

’08 ’12 ’20 ’30

Investment Strategy for GT Development III. Green Technology R&D Roadmap

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Level of HR Required by Technological Area

Number of HR Required by Technological Area

How to Acquire GT Personnel

Demand on high quality HR are the highest in original & fundamental technology.

※High-Quality HR Ratio =

Masters & PhDs / Undergraduates + Masters & PhDs

R&D personnel in the 27 technologies of strategic focus will rise to 33,000 by 2012 from 20,000 in 2008.

Supply will be made with hiring about 7,000 unemployed people of related major and recruiting 14,000, and by re-educating 9,000 existing personnel and inviting 2,700 HR from abroad.

Job rotation of the existing personnel. - Qualitative more than quantitative recruitment is needed. (ex) green job rotation training

Offering special courses at graduate schools and GT basic track at undergraduate schools.

International projects to attract GT human resources from abroad.

High-quality HR Rate by Technology

Original & Fundamental

Verification & Distribution

Growth Engine

0.77

0.69

0.62

III. Green Technology R&D RoadmapGT-Related Human Resources

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Technology Concerned Regulation Merits

Intelligent Grid [Electric Power IT),

Rechargeable Battery

Real-time Energy Trade SystemChanges in consumption pattern, Cut-down of energy consumption

Installation of Energy Storage SystemVitalization of battery market,Stabilization of power supply

Eco-friendly BuildingReinforcing Standard for Energy Efficiency of Buildings

Acquiring state-of-the-art energy efficiency technology;More energy savings of buildings

High Efficiency, Low Pollution Vehicles

Restricting Carbon Emission from Cars No more trade barrier when exporting cars to Europe

Electric Cars Only Lanes for Short-distance Driving(120Km/h → 80Km/h)

Enable to expand consumer market for electric cars

Solar Cell, Bio Energy

Distribution System of Renewable Energy, strategically combining (FIT & RPS)

Expanding domestic market for renewable energy and boosting export

Reinforcing Standard for Renewable Products & Facilities

Increasing Reliability of the products & facilities

Green ProcessReinforcing Standard for Eco-friendly Production Design and Tax Break for Building the Facilities.

Development of plant industry and Low carbon industrial sites

III. Green Technology R&D RoadmapGT-related Regulatory Change

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LightingLED

To be a growth engine by 2012

Improving Efficiency of Lighting Devices for Home and Industry over 120lm/w from 80lm/w as of now.

Silicon Solar Cell

To be commercialized

early 2012

Completing the development of hetero-junction/ rear contact technology and high-efficiency, scalable module production technology. And raising energy conversion efficiency to around 16.5% from 15% as of now.

Hybrid

CarsTo be developed

by 2010

Completing the development of LPG hybrid cars with CO2 emission cut down by 30% and commercializing them by 2012.

Intelligent Grid

To be commercialized

by 2011

Completing the development of Smart Meter, Networking technology, distribution connection technology and commercializing Advanced Metering System by 2011.

Advanced Reactor

To be developed

by 2012

Completing the development of APR+ standard design technology, and starting to export OPR1000, APR1400, SMART, which have been already developed.

Fuel CellProducts to be out for an early entry

into the market no later than 2012

Completing the commercialization of 1kW PEMFC (Proton Exchange Membrane Fuel Cells) for home use. And starting to commercialize products for portable/ mobile devices like notebook computers.

CO2 Capture

To be develped

by 2012

Completing the development of 200~1000MW CO2 capture plant for trial service and test. And reducing the capture cost to 10$/ CO2 ton by 2020 from 30$/CO2 ton of 2008.

7 Core Technology & Products to Be Developed or Commercialized by 2012

Challenges to Yield Results in Short Time III. Green Technology R&D Roadmap

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Securing World Class GT Ahead of Others.

- GT will grow from 51% in 2008 to 94% by 2030.

Sscience & Technology

Sscience & Technology

Drastic Cut-down of CO2 and Preservation of Environment

- Less CO2 emission thorough lessening dependency on fossil fuel and improving energy efficiency

EnvironmentEnvironment

Making GT Next Generation Growth Engine.- Soaring growth of domestic market and occupying the world market in advance.

EconomyEconomy

Technological Advancement

’08 ’12 ’20

51

8090(%)

Job Creation

’07 ’12 ’20

222

481

1,185(1000)

’07 ’12 ’20

0.6

1.5

4.1 (100bil. dollars)

Cutting down CO2

’07 ’12 ’20

1

47

129(1mil. CO2 ton)

Expected Effects III. Green Technology R&D Roadmap

Expanding Export & Domestic Market

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GT Is the Key to Adapt to Climate Change

’08 ’50’12 ’20 ’30

CO

2 em

issi

on

Silicon Solar Cell

Aadvanced Reactor

Bio Energy

Hydrogen Energy

Non-Silicon Solar CellFuel Cell

Fast Reactor

Nuclear Fusion ReactorLighting LED

Intelligent gridIGCC Green Process

Eco-friendly Building

High Efficiency, Low Pollution Vehicles Energy Sources

CO2 concentration would rise 44%('00~'50),(Balanced Development(A1B) Scenario(IPCC, ’07))

Highly Efficient & Clean

Non-CO2 Treatment

CCS

369ppm(’00) 454ppm(’30) 532ppm(’50)

Future Scenario of GT Development III. Green Technology R&D Roadmap

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Green growth, contributing to Korean and Beyond

Contribution to the International Community

Improvement of the Quality of life

NationalDevelopment

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