Difficulties Communicated to Both Major Parties
Policy Agreement Signed with the Democratic Party
Laying the Foundation for Industry Development
The Korean battery industry has launched its first joint response through an official policy agreement with major political parties amid intensifying global competition. While previous interactions with the political sphere had been limited to meetings or opinion hearings, the presidential election period has transformed these connections into institutional cooperation, raising expectations that this will serve as a policy foundation for the future development of the battery industry.
On the 16th, the Korea Battery Industry Association and the Democratic Party of Korea Central Election Countermeasures Committee's Professional Headquarters held a policy agreement ceremony to enhance the competitiveness of the domestic battery industry at the 3rd Seminar Room of the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul. Provided by the Democratic Party of Korea Central Election Countermeasures Committee Professional Headquarters
According to the industry on May 21, the Korea Battery Industry Association recently collected the difficulties faced by major cell and material companies and requested both the Democratic Party of Korea and the People Power Party to incorporate these issues into their presidential campaign pledges.
With the entire industry under pressure due to factors such as attempts by hardliners in the U.S. Republican Party to end the Inflation Reduction Act (IRA) tax credits early, and China's efforts to integrate supply chains and strengthen price competitiveness, the association has effectively appealed to both parties, which have identified "fostering advanced industries" as a key agenda item.
Among them, the Democratic Party of Korea officially signed a joint policy agreement with the association on May 16, outlining four policy tasks as part of the 21st presidential election. This agreement goes beyond mere policy proposals or meetings, taking the form of a joint policy declaration that presumes the inclusion of these issues in the next administration's national agenda. It is significant as the first official document in which the association and the political sphere have pledged to pursue concrete legislative and institutional improvements and have codified future tasks.
The agreement includes the following key points: revitalizing domestic battery production and investment to achieve balanced regional development and job creation; securing energy sovereignty through independent battery supply chains; achieving global economic leadership through next-generation battery technology; and advancing to a leading economic powerhouse through the commercialization of next-generation batteries.
The battery industry has long requested various forms of support from the government and the National Assembly, such as amendments to the Restriction of Special Taxation Act, application of temporary investment tax credits, stabilization of industrial electricity rates, and production subsidies. However, these requests have never led to substantive legislative discussions.
An industry official stated, "While there has been a consensus on the difficulties faced by the battery industry, this is the first time there has been an official promise such as a policy agreement," adding, "We hope that the government will provide active support going forward."
Song Jaebong, a Democratic Party of Korea lawmaker who attended the agreement ceremony, said, "Amid growing concerns across the industry, this agreement comprehensively addresses the policies needed by the sector," and added, "We plan to further develop these policies through working-level meetings in the future."
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