 “The world is Flat”(2005) - globalization of the economy, society, and culture  “Hot, Flat, and Crowded”(2009) - globalization + α - weather is hot - world is overpopulated Thomas L. Friedman, The New York Times, Columnist 4

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 From battery to electric car  Export to US market in 2010  Better than the world leading car manufacturers in the production of electric cars  New opportunities for prepared Source:

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Environmental Performance of Korea $1.2 trillion(14 : OECD) 45.2% of GDP(12 : OECD) 4.4%(5 OECD) th Source : OECD Factbook 2009 Source : IEA Statistics ‘CO 2 Emissions From Fuel combustion’, 9

10th most energy spending country in the world 97% of its energy from overseas Paradigm Shift 10 “economic growth based on input expansion model” is not viable anymore Green growth = Sustainable growth Greenhouse gases / environmental pollution  Integrative Approach:  Technology + Way of Living + Mind

Development of new growth engines  Investment and marketing Three Elements of Green Growth Strategy 11 Minimization of the eco-burden materials with the same energy and resources  Reduction of CO 2 Minimization of energy and resources without sacrificing economic growth  Maximization of Energy Efficiency

Existing industries + green technology to reduce carbon emissions and create new markets 3G strategy for key industries in Korea Enhancing energy efficiency + introducing knowledge-service industry + advancing industrial structure to make low-carbon industrial structure Adding green values from production to consumption to meet international standards and contribute to global environmental issues 12

3 strategies are connected Green Restructuring 13 Green Value Chain Green Value Chain Green Innovation

1. Green Innovation Strategy(1) 14 POSCO FINEX Steel Plant

1. Green Innovation Strategy(2) - FINEX 15

2. Green Restructuring(1) 16

2. Green Restructuring(2) – Solar Power Plant 17

18 2. Green Restructuring(3) – Smart Grid

3. Green Value Chain(1) 19

3. Green Value Chain(2) – Homeplus 20

Source : Saving Energy Eco- Mileage Incentive Provided Re- investment Voluntary Program Incentives Green Value Chain(3) – Eco-Mileage

Mid-term Plan for Greenhouse Gas Reduction 22

SeoulSeoul DaeguDaegu BusanBusan BeijingBeijing % 266% [Unit : $ billion] 5.5 million GyeongbukGyeongbuk 24

Location : 11 districts (6 in Daegu, 5 in Gyeongbuk) Total Area : 39.6 ㎢ Gumi Digital District Gumi Digital District Seongseo Industry District Seongseo Industry District Daegu Technopolis Daegu Technopolis International Culture Industry District International Culture Industry District Suseong Medical District Suseong Medical District Pohang Fusion Tech District Pohang Fusion Tech District Daegu International Fashion District Daegu International Fashion District Daegu Sinseo District Daegu Sinseo District Gyeongsan Academic District Gyeongsan Academic District Yeongcheon Industry District Yeongcheon Industry District Yeongcheon High Tech Park Yeongcheon High Tech Park Gumi Daegu Gyeongsan Yeongcheon Pohang 25

Vision Automotive -Shipbuilding- Bicycle Solar- Wind - Fuel Cell Medical - Fashion - Culture - Academic Gumi Daegu Gyeongsan Yeongcheon Pohang LED - Mobile - Medical Devices - Robotic s 26

To become a world leading Free Economic Zone of Green Energy Green Energy Belt 27

Poly-silicon, Special Gas, New Materials Close proximity to end users such as Electronics, Automotive and Shipbuilding Companies Designation of Green Energy as the Daegu-Gyeongbuk’s Leading Industry 2% of GDP in Green Energy Investment ($85.5 billion USD) over 20 years Global expansion - Establishing foreign facilities to provide energy (Chile, Cambodia, etc.) - Exporting Green Energy parts and materials Establishing and/or increasing current production capacity - Establishment of fuel cell production plant - Transformation to Solar PV by IT and chemical companies 28

The Global Supply Base for Green Transportation components 29

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431 manufacturers including Samsung and LG 49,000 employees 431 manufacturers including Samsung and LG 49,000 employees DGIST, Daegu Center of ETRI, NCNT, PIRO, PAL MTCC (Mobile Technology Convergence Center) ROBIC (Robot Business and Industry Promotion) DGIST, Daegu Center of ETRI, NCNT, PIRO, PAL MTCC (Mobile Technology Convergence Center) ROBIC (Robot Business and Industry Promotion) IT Convergence & Fusion as the Daegu - Gyeongbuk Leading Industry $151.2 Billion in IT development investment by 2012 IT Convergence & Fusion as the Daegu - Gyeongbuk Leading Industry $151.2 Billion in IT development investment by

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