5 Major Industry Associations "Low-Carbon Development Strategy... 1.3 Million Jobs Will Disappear"

[Asia Economy Reporter Park So-yeon] As the government has officially begun the process of establishing the '2050 Long-term Low Carbon Development Strategy (LEDS)' to be submitted to the United Nations (UN) by the end of this year, concerns have been raised that up to 1.3 million jobs could disappear if the recommendations announced by a related private forum in February are finalized as is.

On the 8th, five major industry associations?steel, petrochemicals, cement, semiconductors, and displays?jointly held the '2050 Long-term Low Carbon Development Strategy Industry Forum.' This forum was organized to gather industry opinions on the recommendations of the '2050 Low Carbon Society Vision Forum' announced in February and submit them to the government.

At the forum, Lee Sang-yeop, General Secretary of the '2050 Low Carbon Society Vision Forum' (Research Fellow at the Korea Environment Institute), explained, "The private forum's recommendations created five scenarios to reduce Korea's greenhouse gas emissions in 2050 by a maximum of 75% (Scenario 1) to a minimum of 40% (Scenario 5) compared to 2017, based on the feasibility of each greenhouse gas reduction method."

Industry experts evaluated that the private forum's recommendations failed to reflect the realities of Korea's key industries and the fundamental characteristics of reduction methods, and they unanimously agreed that a comprehensive review incorporating opinions from industry and technical experts is necessary.

Nam Jeong-im, Director at the Korea Iron & Steel Association, said, "The European Union (EU) and Japan, which have already submitted their 2050 LEDS, stated they would reduce greenhouse gases by 5% and 10%, respectively, through hydrogen reduction steelmaking technology that produces steel using hydrogen. However, the private forum's recommendations propose a reduction of up to 45%," adding, "The targets for reduction methods are too detached from reality."

Kim Ki-young, Head of the Korea Petrochemical Industry Association, pointed out, "The core reduction method for the petrochemical industry proposed in the private forum's recommendations is the production of high value-added products. However, producing high value-added products requires additional processes and energy, which inevitably leads to an increase in greenhouse gas emissions."

Kim Ui-cheol, Team Leader at the Korea Cement Association, also stated, "The key reduction method for the cement industry is the recycling technology of waste concrete. Considering that the recyclable cement fine powder in waste concrete is around 2%, following the forum's recommendations would require large-scale imports of waste concrete from overseas."

Kim Hyo-su, Team Leader at the Korea Semiconductor Industry Association, criticized, "According to the private forum's recommendations, all companies producing semiconductors must install 100% of process gas reduction facilities and maintain a 100% operation rate of these facilities. While installing 100% of the reduction facilities is possible, maintaining a 100% operation rate means that maintenance, which takes about 30 days annually, cannot be performed."

The Korea Institute for Industrial Economics and Trade analyzed that, according to the private forum's recommendations, manufacturing production could decrease by up to 44%, and jobs could decline by up to approximately 1.3 million.

Jeong Eun-mi, Head of the Korea Institute for Industrial Economics and Trade, who participated as a discussant, expressed concern, saying, "If implemented as recommended without alternatives for reduction methods, manufacturing production would have to be reduced by up to 44% by 2050. This implies the contraction or closure of domestic companies that hold global competitive advantages."

Jeong added, "The employment reduction effect, considering upstream and downstream industries of domestic manufacturing under the five recommendations, would range from a minimum of 860,000 to a maximum of 1.3 million people. There must be a public discussion on how to handle the domestic production base of manufacturing, which emits a large amount of greenhouse gases."

Lee Yeon-gyu, Director at the Korea Display Industry Association, said, "Domestic key industries, including the display sector, already possess the world's best energy efficiency and technological capabilities, so additional reductions with current reduction technologies are difficult. The low carbon development strategy should be reviewed from more multifaceted perspectives, including industrial realities and the pace of reduction technology development."