[Gyeongju APEC] Cho Seok, HD Hyundai Vice Chairman: "Energy Security Is Most Urgent"... Leaders Seek Decarbonization Strategies

Keynote Speech on Carbon Neutrality
"New Responses Needed for the Era of Electrification"
Energy Sector Leaders Gather for Discussion

Cho Seok, Vice Chairman of HD Hyundai, emphasized the necessity of ensuring energy security as a core task in the era of electrification and energy transition at the CEO Summit, a side event of the Asia-Pacific Economic Cooperation (APEC) Summit.

On the second day of the APEC CEO Summit, held on October 29 at the Gyeongju Arts Center in Gyeongbuk, Vice Chairman Cho delivered a keynote speech during the session titled "Carbon Neutrality and the Survival of the Planet: Strategies for Future Prosperity." He stated, "Many people say we are living in an era of great energy transition, and it is precisely in such times that energy security is desperately needed." He continued, "Traditionally, the goals of energy policy are to achieve a balanced 'Triple E'-energy security, economic efficiency, and environmental protection. However, in reality, energy security is the most urgent." He cited the oil shock of the 1970s as an example.

He stressed the need to move beyond the traditional fossil fuel-based concept of security and adopt new responses suitable for the electrification era, identifying the following as key challenges: expanding power grids, securing critical minerals, and advancing digital transformation. In particular, with power demand surging due to the proliferation of artificial intelligence (AI) data centers and electric vehicles, he noted, "To supply electricity stably, it is crucial to ensure reliable grid connections that can meet the explosive demand."

HD Hyundai Electric's ultra-high voltage transformer business is also growing rapidly. Vice Chairman Cho shared, "Due to explosive global demand, order slots for delivery in the United States and Europe are already filled up to 2028, and we are now taking orders for 2029." He added, "In 2024, the grid queue in the United States stands at 2,600 gigawatts (GW), with 95% of this capacity being carbon-free power such as solar and wind." He explained that grid stability is becoming a new pillar of security.

He also highlighted the need for international cooperation to ensure stable supplies of key electrification materials such as copper, lithium, nickel, and rare earth elements. "I hope this APEC meeting will yield collaborative measures to secure the stability of critical mineral resources," he said.

Cho Seok, Vice Chairman of HD Hyundai, is delivering a speech on "Carbon Neutrality and Energy Security for a Sustainable Future" at the Asia-Pacific Economic Cooperation (APEC) CEO Summit held on the 29th at the Gyeongju Arts Center in Gyeongbuk. Photo by Kang Jinhyung

He also identified digital transformation as an essential factor. Vice Chairman Cho explained, "Renewable energy is characterized by intermittent and decentralized generation, so the electricity market needs flexibility." He added, "Integrating digital technology is essential for demand management, such as rate plans, efficiency, and peak control."

In closing, Vice Chairman Cho stressed, "New energy security cannot be achieved by any single country alone; international cooperation is essential." He added, "I hope this APEC Summit will produce tangible results in the field of energy security."

The subsequent panel discussion featured Vice Chairman Cho, Kim Kijun, Vice President of Korea Zinc, Bernhard Lorentz, Deloitte Global Climate Infrastructure Leader, and Lee Youngjun, Executive Vice President of HS Hyosung, who engaged in a lively debate on carbon neutrality and public-private cooperation strategies.

Vice Chairman Cho stated, "At the government level, the challenge is how to supply fuel-based electricity stably." He continued, "As we transition to electricity, we must also consider how to utilize decarbonized and carbon-free power sources." He emphasized that, for the private sector, switching to low-carbon power is becoming not a choice but a necessity.

Executive Vice President Lee explained, "At Hyosung, we are focusing on 'carbon intelligence,' which involves analyzing data to understand and streamline the decarbonization process." He added that using 'carbon fiber composites' to replace metals in vehicles and aircraft can reduce both weight and carbon emissions.

Leader Lorentz cited European examples to underscore the importance of circularity and public-private partnerships. He said, "Just as the concept of 'freedom energy' has emerged in Germany to achieve independence from fossil fuels, energy security and decarbonization must go hand in hand." He suggested that government involvement is necessary in areas such as battery storage and AI infrastructure investment.