Posted by Senior Director, Juliette Terzieff:
South Korea, a long-standing competitor in the electronics and automobile industries with companies like LG, Samsung, and Hyundai, has entered the renewable energy market with the same vigor that catapulted it to competition status in the above industries beginning almost five decades ago.
When President Lee Myung-bak came into office four years ago, “Green Growth” was his top priority for his country. On its way to becoming one of the top carbon-emission producers in the world, South Korea has taken measures, made commitments, and created committees over the last four years to change its “policies—from waste-management to air- quality to renewable energy. And—this being South Korea—exports are a central part of that.”
“Exports are very important for us,” said Joo Hyunghwan, head of Korea’s Presidential Committee on Green Growth. “We are not well-endowed with renewable resources but we need to increase our energy mix. And we want to develop renewable technologies into a strategic export industry.”
According to Bloomberg’s New Energy Finance’s lead wind analyst, Justin Wu, South Korea “is starting its wind industry at a difficult time, with falling prices and shrinking demand.” But, says Wu, the country’s firms are good at “leapfrogging.”
It’s not the first time South Korea has had to jump forward to attain newer technological capabilities. In the 1980s, the country was able to match competition from Western and Japanese automobile manufacturers by investing in European expertise.
When the wind turbines are most common in Europe, because Europe is the established leader in the market, along with China, buying up European expertise or companies makes sense. Nearly every wind turbine in South Korea is European-made.
Since South Korea has a great deal of industrial experience in things like shipbuilding and steel, it has valuable production skills that can be transferred to the manufacture of green products such as solar panels or wind-turbines. The country’s conglomerates, which hold strong, well-disciplined values, are “tightly knit into the rest of the economy,” and Justin Wu says that such conglomerates “have a strong desire to move into this new business area.”
To remain competitive in the green technology market, South Korea has begun opening factories in China, though China is steaming ahead in the market. By 2020, South Korea has its eyes set on gaining 10 percent of the world’s renewable technology market. It has also said that by 2030, 11 percent of its total energy will be from renewable energy. Unison is one of South Korea’s turbine manufacturers, and is getting ready to compete with China by setting up a factory there. “Korea is basically an export-driven country,” Unison’s international head, Ham Bom-sik, says. “When we developed wind turbines, our main focus was overseas.” Unison’s exports to Jamaica and the Seychelles, as well as South America, have started off slow, but South Korea isn’t a country to back down from challenging market development opportunities.
South Korea is also looking into tidal power—a green energy obtained from tidal waves—with plan already underway to create more tidal plants after the success of its first tidal plant, and world’s largest, was completed off its western coast. The proposed projects have drawn some criticisms, especially from fishermen and environmental groups.
Ernst & Young, which updates its Country Attractiveness Indices quarterly, reports that “South Korea aims to generate 5% of energy from renewables by 2011, increasing to 11% by 2030. This is compared with a current figure of 2.4%; therefore achievement of these targets would more than double energy from renewables by the end of next year.”
The reports indicates that South Korea is not only looking into wind turbines as a renewable technology to be used within its borders, but it is also looking into offshore wind power, solar power, and hydro power with its Four Rivers Project.
As South Korea expands into the renewable energy arena, its use of “green technology growth to boost the economy” is a new strategy and one that may, given its success, encourage other countries to follow its lead.







