[Interview] "Taiwan ESG Demand Surges... Korean Companies Must Seize the Opportunity"

Lee Youngki, Head of KOTRA Taipei Trade Center:
"Taiwanese Companies Show Interest in Carbon Reduction Technologies"
Power Shortages Also Present Opportunities for Korean Companies

Editor's NoteTaiwan's TSMC, which has quietly grown in the semiconductor market, is reorganizing its 'silicon shield' lineup in response to tariff pressures from U.S. President Donald Trump. Recently, by announcing a surprise investment of $100 billion (approximately 145.9 trillion KRW) in the United States, TSMC is simultaneously responding to the Trump-induced tariff bomb and focusing on its production bases in Taiwan to enhance its deterrence against China. In particular, it is accelerating the establishment of ultra-fine semiconductor process facilities to quickly respond to market demand. Once solely focused on unnamed (無名) industries for survival, TSMC is now actively defending its position as the world's number one semiconductor foundry. Asia Economy analyzes TSMC's strategies, risk factors, and opportunities for Korea in four installments through on-site reporting in Taiwan and expert interviews regarding the global trade war.

<Series Order>
<1> TSMC, the God... Visiting the '2nm' Holy Land
<2> The '6 Constraints' Holding Back TSMC and Technology Security
<3> The Opening of Unnamed Taiwan
<4> Korea-Taiwan, Between Deterrence and Cooperation

On the 21st, Lee Young-gi, the head of KOTRA Taipei Trade Center, is being interviewed by Asia Economy Daily at his office inside the TWTC International Trade Building located in the heart of Taipei, Taiwan. (Photo by Kim Hyun-jung)

"Taiwan is currently like a grand stage for ESG (Environment, Social, Governance). Especially under President Lai Ching-te's administration, which focuses on renewable energy, the opportunities are endless. Even in Taiwan, where there is clear competition and deterrence against Korea, our companies are welcomed in this field."

On the 21st, at the TWTC International Trade Building located in the heart of Taipei, Taiwan, Lee Young-ki, head of KOTRA's Taipei Trade Center, repeatedly emphasized 'Taiwan as a market.' Along with the surge in interest in Korean consumer goods such as cosmetics and clothing riding the wave of K-culture, he stressed the need to quickly enter strategic industries like infrastructure.

Lee said, "Taiwanese companies are gradually becoming sensitive to carbon emissions and are continuously compiling a list of companies that possess technologies with excellent carbon reduction effects." He introduced, "One Korean company was listed on the company list managed by TSMC and, after about ten years of effort, became a supplier." He added, "If you devote yourself over a long period, opportunities will surely arise, and once you have an opportunity, given the Taiwanese companies' tendency to avoid changing partners, you can become a joint destiny partner and settle stably in the market for a long time." Lee described this as a 'Taiwanese relationship.'

Taiwan's power shortage issue can also serve as an opportunity for domestic technology companies to enter. President Lai Ching-te, who took office in May last year, mentioned plans to diversify renewable energy sources as a measure to strengthen the resilience of the power system. According to the '2050 Carbon Neutrality' policy established in 2022 when he was vice president, Taiwan aims to cumulatively install 3 to 6.2 gigawatts (GW) of geothermal power, 1.4 to 1.8 GW of biomass, 1.3 to 7.5 GW of marine energy, and 7.3 to 9.5 GW of hydrogen energy by 2050. For solar and offshore wind power, the plan is to increase installed capacity to 40 to 80 GW and 40 to 55 GW, respectively.

In line with policy goals, Taiwan is promoting legislative reforms and pilot projects to create development conditions by sector. In this process, Korean and Japanese companies, which are one step ahead, are expected to benefit. In May last year, CS Wind, a manufacturer of wind towers and offshore wind substructures, signed a contract worth 60.1 billion KRW to supply wind towers to Taiwan. In the same month, a Taiwanese delegation visited Korean companies HD Hyundai and Hyosung Heavy Industries to discuss cooperation in hydrogen and offshore wind power sectors with working-level officials.

He said, "Most infrastructure development projects are directly promoted by Taiwan, but in fields such as power and energy, there is a lot of collaboration with overseas companies." He added, "There is a long history of technological exchange and much cooperation with Japan, but in terms of social overhead capital (SOC), once references are accumulated, there are no restrictions."