At the November 3 Press Briefing
Moon Sin-hak, Vice Minister of the Ministry of Trade, Industry and Energy, stated on November 3, "It is difficult to predict the impact that the annual 20 billion dollar investment in the United States will have on domestic industries."
At a press briefing held that day, Vice Minister Moon said, "The effect on domestic industries will depend on how the annual 20 billion dollar project, which Korea has decided to invest in the United States, is carried out."
The United States and South Korea reached an agreement on a 350 billion dollar investment in the United States during a summit held on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit on October 29. The investment consists of 200 billion dollars in cash and 150 billion dollars in shipbuilding cooperation. The cash investment will be divided and executed over ten years, with an annual cap of 20 billion dollars, taking into account Korea's foreign exchange spending capacity.
Vice Minister Moon explained, "Among the 20 billion dollar projects, there will be plans desired by the U.S. government, projects discussed with our (Korean) government, and initiatives that Korean companies want to pursue. Once the specific investment methods are determined, the Ministry of Trade, Industry and Energy will continue to review and analyze how investments in the United States will affect existing corporate investments, what changes may occur, and what impact this may have on Korea's strategic industries. We plan to announce response measures in the near future."
The ministry also plans to enact a special law on RE100 industrial complexes, which are industrial complexes powered 100% by renewable energy, within this year, and to begin establishing the first such complex in the first half of next year. Vice Minister Moon said, "The special law on RE100 industrial complexes has already been proposed by an assemblyman, and we aim to finalize the bill through consultations with the National Assembly by the end of the year. We will strengthen incentives such as corporate and income tax benefits so that 'anchor companies' leading the industrial ecosystem can move into these complexes."
He refrained from commenting on the location and scale of the RE100 industrial complexes. Vice Minister Moon stated, "Our goal is to decide on the location for the RE100 industrial complex in the first half of next year. However, the number of sites and their specific locations have not yet been determined."
He also noted that the government is in the final stages of inter-ministerial agreement on the 2035 Nationally Determined Contribution (NDC) target for greenhouse gas reduction. The 2035 NDC is a target that each country must establish and submit to the United Nations (UN) by the end of this year under the Paris Agreement. Since last year, the government has been working on formulating the 2035 NDC, and since September of this year, it has held six rounds of public discussions and is now conducting inter-ministerial consultations. On November 2, Prime Minister Kim Minseok presided over a meeting attended by Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol, Minister of Trade, Industry and Energy Kim Jeonggwan, and Minister of Climate, Energy and Environment Kim Seonghwan to discuss the NDC formulation plan.
Vice Minister Moon said, "We must reduce carbon emissions as much as possible to respond to climate change, but we cannot allow industrial competitiveness to decline in the process. Achieving both goals simultaneously is a difficult challenge, which is why there are intense discussions within the government. I believe we will soon reach an agreement that can be discussed externally."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
