<산업 1차관, 산업·통상·에너지분야 성과 및 계획 발표>
Deputy Minister of Industry Announces Achievements and Plans in Industry, Trade, and Energy Sectors
The government plans to establish a "semiconductor ironclad alliance" next year connecting South Korea, the United States, Japan, Taiwan, and the European Union (EU). It will begin selecting sites for new nuclear power plants such as Small Modular Reactors (SMRs) and aims to provide contracts worth 11 trillion won related to nuclear power by 2027. The government also intends to lay the foundation for a 50 trillion won offshore wind power investment and establish the CFE (Carbon-Free Energy) initiative as an international carbon neutrality platform.
Park Seong-taek, First Vice Minister of the Ministry of Trade, Industry and Energy, announced this during a briefing on the "Key Achievements and Future Plans in Industry, Trade, and Energy under the Yoon Seok-yeol Administration" held at the Government Complex Sejong on the 13th. At the briefing, Vice Minister Park stated, "We will promptly respond to changes in the trade environment following the U.S. presidential election results and continue proactive outreach to reduce uncertainties for companies investing in the U.S."
Amid expectations that the new Trump administration will exert stronger pressure on China than the Biden administration, Vice Minister Park explained that efforts will focus on stabilizing the business environment for semiconductor companies. He said, "We will work to minimize global business uncertainties for our companies through enhanced cooperation with the new U.S. administration and hosting multilateral semiconductor meetings," adding, "We will support our advanced technology companies' global business by resolving trade issues related to semiconductors and other high-tech industries through various channels and strengthening global cooperation."
The Ministry of Trade, Industry and Energy announced plans to fully implement the previously announced "Comprehensive Support Plan for the Semiconductor Ecosystem," including the launch of low-interest loans worth 17 trillion won, and to push for the extension of the investment tax credit expiration until 2027. It also explained that by enacting the Power Grid Act, it will strengthen national responsibility for infrastructure in specialized complexes and continue expanding policy financing for advanced projects to invigorate private investment.
Vice Minister Park stated, "Since 2019, SK Hynix's Yongin industrial complex, which had been stalled due to various permits and approvals, is now nearly complete in site preparation and is set to begin construction of the first fab early next year," adding, "We are also pushing to designate additional advanced strategic zones as early as the end of this year." Furthermore, he emphasized that next year, as the chair country of the "Semiconductor Producing Countries Conference," South Korea will lead the establishment of the "semiconductor ironclad alliance" connecting South Korea, the U.S., Japan, Taiwan, and the EU.
Vice Minister Park evaluated that the domestic nuclear power industry ecosystem, which was on the brink of collapse due to the Moon Jae-in administration's nuclear phase-out policy, has recovered and contributed to strengthening energy security through the resumption of construction of Shin Hanul Units 3 and 4 and the selection of a preferred bidder for the Czech nuclear power plant construction. He said, "The draft of the 11th Basic Plan for Electricity Supply and Demand includes the construction of three large nuclear power plants and one SMR, and once the remaining procedures such as reporting to the National Assembly are completed, we will begin site selection."
The government plans to normalize the nuclear power ecosystem by issuing additional contracts worth over 11 trillion won by 2027 and to enact the "Special Act on Nuclear Industry Support" to establish a legal and institutional foundation that can support the nuclear power ecosystem stably and consistently regardless of political circumstances. It also plans to develop a "2050 Mid-to-Long-Term Nuclear Industry Roadmap" to present a mid-to-long-term vision for the nuclear industry.
Regarding renewable energy, Vice Minister Park stated, "We will expand the distribution of solar power mainly in industrial complexes with high local acceptance, and focus on offshore wind power by enacting the Offshore Wind Power Special Act and preparing an investment base worth 50 trillion won through 7 to 8 GW of bidding over the next two years."
Vice Minister Park explained, "Next year, South Korea will serve as the chair country for APEC and the Clean Energy Ministerial Meeting," adding, "We will use this opportunity to firmly establish the CFE initiative as an international carbon neutrality platform."
The government also plans to select 10 culture-leading industrial complexes by 2027, support the creation of branded industrial complexes as a package project, and encourage voluntary cultural projects by forming public-private cooperation bodies for each industrial complex.
Vice Minister Park said, "Our industry stands at a turning point of industrial transformation represented by carbon neutrality and artificial intelligence (AI)," adding, "The Ministry of Trade, Industry and Energy will take the lead in removing uncertainties and leveling the playing field for companies." He also announced plans to establish an Industrial Artificial Intelligence Division to lead industrial AI policies soon. Additionally, he revealed plans to operate a task force (TF) within the ministry to propose new industrial policies suited to the new era in the near future.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
