Korea’s Strategic Roadmap of Technology and Industry under Green Growth Paradigm

1. Korea’s Strategic Roadmap of Technology and Industryunder Green Growth Paradigm President Prof. June Seung Lee, Ph.D

2. I. Green Growth and Green Industry II. Current Situation and Investment Target III. Green Technology R&D Roadmap

3. Green Growth And Green Technology

4. Future Threat Preoccupancy Policy Changes in Future Society and Need of Green Growth I. Green Growth and Green Technology • Need to respond resource crisis and environmental problems 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. • Regulatory support for the efficient use of resources and minimization of environmental pollution. Response Industry-oriented economic growth reached a limit in terms of environment and economy. Green growth is not an option but a must; However, Korea is facing a long way ahead. • Need to set a policy direction on GT R&D according to the environmental changes. 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)

5. Global Market Domestic Market Market Outlook of Green Industry I. Green Growth and Green Technology • 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 (Tri. Dollar) 6 3 1 ’07 ’12 ’20 Rechargeable Battery High Eff., Low Poll., Vehicles • ‘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 63% 47% 31.4% 30.5% 24.3% 0.7% ’07 ’12 ’20

6. Concept of Green Technology I. Green Growth and Green Technology Traditional GT refers to eco-friendly resource technology such as renewable energy, clean energy, etc. (Technet, 07) • Traditional GT: new & renewable energy, high energy efficiency technology, environmental technology, climate change adaptation technology. • Technet : Bipartisan policy network of USA 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.

7. Technology Overcoming limitations of existing technology Creation of New Industry & Employment Enhancement of existing industry Traditional Green Technology & Industry Industry Expansion to Fusion Green Technolgy I. Green Growth and Green Technology Drawing fusion technological characteristics, creative and innovative, out of traditional green technologies which focus only on individual purpose, function and use. 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. 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.

8. Roles of Green Technology I. Green Growth and Green Technology Roles of GT Pending Issues Worsening Energy Problems Improving Energy Independenceby energy source and energy efficiency technologies. (Solar cell, atomic power, lighting LED, Intelligent grid (electrical power IT)) • Fossil fuel running out, Korea importing 97% of its energy. • Energy consumption per capita increases 5.8% per annum. Protecting ecosystem by preemptive investment into environmental protection technology. (prediction of climate change, CCS, water quality management, control of toxic materials) 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. Shifting to low carbon industries via greenization of industry & space and zero-emission technologies. (Intelligent transportation & logistics, city revitalization, and virtual reality) Emerging low carbon green industry • Market for carbon emission reduction and green industry • expected to grow to 3 trillion won by 1220. • Green Technology Raceto be more competitive among • advanced countries like the U.S., Japan and EU.

9. Current Situation & Investment Target

10. 11th 8th 13th Korea’s Green Competitiveness II. Current Situation & Investment Target Green Competitivenessrefers to the national competitiveness to realize green growth via low-carbon and green industry. ※comparing with major 15 countries Overall Green Competitiveness New, renewable energy application & energy efficiency Weakness Low-Carbonization Index Science & technology, environmental management Strength Green Industrialization

11. Korea’s Overall Conditions II. Current Situation & Investment Target Level of GT Lower than Advanced Countries Steady Increase of Green House Gas Emission • Korea’s leading GT is around 60% of that of advanced countries • Renewable energy (62%) • atomic energy& nuclear fusion (64%) • Hydrogen & fuel cell (55%), etc. • 16th in the world for green house gas emission • 10th in the world for CO2 emission Need to Implement the GT Development Strategy in National Scale Inclination to Import New technology Rather than Develop One Import Dependency: Solar Power 75%, Wind Power99.6%

12. Not enough preparation for commercialization and export, to preoccupy rapidly-growing new, renewable energy market. • 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. Insufficient verification, distribution & core original technology for enhancing energy efficiency • 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. Urgent need to enhance green competitiveness of key industries and acquire living-based technology. • 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. Not enough response capacity to climate change and resource circulation system in regard to domestic circumstances. • Resource circulation and environment purification technologies do not meet international standards. • Few information DB for the evaluation of environmental hazards. Issues by Type of GT II. Current Situation & Investment Target

13. Governmental Implementation by Department II. Current Situation & Investment Target Fusion GT Traditional GT R&D Base-type Fusion GT Mid & long-term, fundamental & original technology research and training; atomic energy & nuclear fusion research Fundamental technology applicable to every field through the fusion between IT, BT and NT. MEST Research on energy sources such as developing new & renewable energy and enhancing efficiency of electrical power; research on high efficiency green-tech. Mission-type Fusion GT MKE 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. Environmental green technology such as reducing air pollution, improving water quality and waste treatment. MoE Research on eco-friendly method of construction and green technology in the field of marine energy. MLTM 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.

14. Total investment will be more than doubled 2007 2012 Investment Target of Green Technology II. Current Situation & Investment Target R&D Investment Target 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 onfusion green technology. “Green Technology includes IT, BT, NT, CT and goes beyond all these combined.” (Pr. Lee Myung-bak, the Liberation Day speech)

15. Green Technology R&D Roadmap

16. Area of Strategic Focus III. Green Technology R&D Roadmap Consumption Production Prediction • Environmental load reduction andrecycle Post- Process Technology Prediction Technology Application Technology High Efficiency Technology • Efficiency Alt. EnergyResource Technology • Knowledge basedpollutant free industry • Climate change • prediction • and evaluation • Alternative energy

17. Picking Technologies of Strategic Focus III. Green Technology R&D Roadmap Basic Technology like IT, BT, NT & Other Industrial Technologies Information based pollution free industry Climate Change Technology Monitoring & Prediction of Climate Change Impact Evaluation and Countermeasures Future Energy(Nuclear Fusion· atomic power), CO2 Absorbent Green Energy Environmental Technology Renewable Energy Eco-Friendly Products & Process Environmental Health Environmental Recovery Resource Circulation Water Treatment Pollution Prevention Solar Power Wind Power Hydrogen & Fuel Cell Coal Liquefaction & Gasification Bio Energy Hydro Power Maritime Energy Geothermal Energy Non-CO2 Control CO2 Capture & Storage Energy Efficiency Energy Storage LED Electric PowerIT Green Home Green Car Energy-saving Home Applicances High-capacity Generation Gas To Liquids (GTL)

18. ’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 • 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.

19. GT-Related Human Resources III. Green Technology R&D Roadmap Level of HR Required by Technological Area High-quality HR Rate by Technology • Demand on high quality HR are the highest in original & fundamental technology. • ※High-Quality HR Ratio = • Masters & PhDs / Undergraduates + Masters & PhDs Original & Fundamental 0.77 Verification & Distribution 0.69 Growth Engine 0.62 Number of HR Required by Technological Area • 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. How to Acquire GT Personnel • 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.

20. GT-related Regulatory Change III. Green Technology R&D Roadmap

21. Challenges to Yield Results in Short Time III. Green Technology R&D Roadmap • 7 Core Technology & Products to Be Developed or Commercialized by 2012

22. Securing World Class GT Ahead of Others. Sscience & Technology - GT will grow from 51% in 2008 to 94% by 2030. • Drastic Cut-down of CO2and Preservation of Environment Environment • Less CO2emission thorough lessening dependency on fossil fuel and improving energy efficiency • Making GT Next Generation Growth Engine. Economy - Soaring growth of domestic market and occupying the world market in advance. 129 (1000) 90 (%) 1,185 (1mil. CO2ton) 80 51 481 47 222 1 ’07 ’12 ’20 ’08 ’12 ’20 ’07 ’12 ’20 Cutting down CO2 Technological Advancement Job Creation Expected Effects III. Green Technology R&D Roadmap 4.1 (100bil. dollars) 1.5 0.6 ’07 ’12 ’20 Expanding Export & Domestic Market

23. Future Scenario of GT Development III. Green Technology R&D Roadmap GT Is the Key to Adapt to Climate Change CO2 concentration would rise44%('00~'50),(Balanced Development(A1B) Scenario(IPCC, ’07)) 369ppm(’00) 454ppm(’30) 532ppm(’50) Aadvanced Reactor Highly Efficient & Clean Non-CO2Treatment Eco-friendly Building CO2 emission Hydrogen Energy CCS Fast Reactor High Efficiency, Low Pollution Vehicles Energy Sources Nuclear Fusion Reactor Lighting LED Bio Energy Silicon Solar Cell Green Process IGCC Intelligent grid Fuel Cell Non-Silicon Solar Cell ’08 ’12 ’20 ’30 ’50

24. Green growth, contributing to Korean and Beyond Contribution to the International Community Improvement of the Quality of life National Development

25. Thank You!