1. KCCI-BISD, President Tae-Jin PARK Opportunities & Challenges of Green Growth in Korea Opportunities & Challenges of Green Growth in Korea November 24, 2009

2. CONTENTS I II III Low Carbon Green Growth in Korea Green Industry in Korea Green Future of Korea

3. Presidential VISION Creating New 60 years (announcement of a new national vision in the 60 th anniversary of the founding of the Republic on August 15 th 2008) More than just an environmental policy - a new paradigm of progress - changing people’s behavior and way of thinking Next 60 years Green growth Last 60 years Economic growth I. Low Carbon Green Growth

4. Why is Korea striving for Green Growth? Climate Change Energy security vulnerability Economic slow-down - average temperature rise 1.7 ℃ (2 times more than world average) - 140 billion USD/yr for energy import - growth rate declining since the Asian economic crisis in late 1990s - growth without rise in employment “New path is needed” “New path is needed” I. Low Carbon Green Growth

5. How can we achieve Green Growth? Green Growth Increased Awareness & Participation Technology Policy Tool (Regulation & Incentive) I. Low Carbon Green Growth

6. key roles of the Presidential Committee on Green Growth Sustained Drive Committee on Green Growth - inherits the spirit of the “Economic Development Plan” in the 60~80s * 5 year implementation plans - new “green saemauel movement” Strategy Plan - Green New Deal - 2% of GDP government spending on Green Growth policy Green Budget legislation of the Basic Act on Green Growth Legal Framework National midterm GHG reduction target: BAU -30% (-4% 2005 level) I. Low Carbon Green Growth

7. Green New Deal Background & Key projects - Green New Deal announced on Jan. 2009 - 9 key projects and supporting projects - focused on job creation as well as building the foundation for low carbon economy transition I. Low Carbon Green Growth

8. New Engine for Growth Background -Selected 3 key sectors (17 areas) as the new engine for economic growth (Jan 2009) * Key sectors: green technology, advanced convergent technology, high-value service - Implementation Plan: 6.7 trillion won investment on 79 measures to promote green technology development (May 2009) I. Low Carbon Green Growth

9. Strategy & 5-year implementation plan Objectives 10 Key Agenda Low Carbon Society And Energy Security New Engine for Growth Enhanced Quality of Life & Int’l Leadership Effective mitigation of GHG Reducing use of fossil fuel & Improving energy security Adopting to Climate Change R&D for Green Tech. Greening existing industries Advancement of Industrial structure Lay the Foundation for Green Economy Green Transportation & Land Management Green Life-style International leadership Finalized July 2009 - a multi-agency + research institute participating project - Government investment of 2% of GDP per year (totaling 86 billion USD in the next 5 years) Key Framework I. Low Carbon Green Growth

10. To share ‘Green Growth’ vision with our neighbors East Asia Climate Partnership - announced at G8 Extended Summit Meeting (Toyako Japan 2008) - 200 million USD for 5 years (2008 ~ 2012) I. Low Carbon Green Growth

11. Green Industry in Korea: SK Energy Source: SK Energy II. Green Industry in Korea

12. Green Industry in Korea: Doosan Heavy Industries Source: Doosan Heavy Industries, ‘Green Technology Roadmap’ II. Green Industry in Korea

13. The Importance of CCS Source: IEA 2008, Energy Technology Perspectives : Scenarios and Strategies to 2050 II. Green Industry in Korea

14. 450MW IGCC/CCS Huerth plant : CO 2 pipeline II. Green Industry in Korea Source: Frank Schwendig, RWE Power AG (2009)

15. II. Green Industry in Korea Source: Frank Schwendig, RWE Power AG (2009) 450MW IGCC/CCS Huerth plant : Capital costs

16. Green Industry in Korea: KC Cottrell type 1 Market- Oriented Technology (Korea) + Market (China) type 2 Manufacturing -Oriented Technology (Korea) + Manufacturing (China) + Market (Overseas) type 3 Technology- Oriented Technology (Korea, China) + Market (Korea, China, Overseas) II. Green Industry in Korea  Technology-oriented cooperation since 2008: Technology (Korea, China) + Market (Korea, China, Overseas) Taiwan Hsinta EP, FGD and Ash handling project Chile Guacolda, ESP project Source: KC Cottrell

17. Green Industry in Korea: KC Cottrell II. Green Industry in Korea South Jeju Power Plant, EP Source: KC Cottrell

18. Green Industry in Korea: KC Cottrell II. Green Industry in Korea Hadong Power Plant, FGD Source: KC Cottrell

19. KC Cottrell : Market-Oriented Model II. Green Industry in Korea Project Outline Project Outline  China, Paper Manuf. 320T Co-gen plant FGD  Location : Chong Qing, China  320 ton/hr CFB Co-gen Plant x 2 Unit  Dust collection system & FGD  Project period : 2007. 05 – 2008. 05 Special Feature Special Feature  GSA Technology  Minimize the formation of secondary pollution & water consumption & water consumption Collaboration Collaboration  KC Cottrell : Basic design  KC Cottrell China : Detail design, Production & Installation & Installation Source: KC Cottrell 구룡제지발전소 九龙纸业发电厂

20. II. Green Industry in Korea KC Cottrell : Manufacturing-Oriented Model Project Project  Asia Specialty Steel, Bag Filter for 60t AC Elec. Furnace  Location : Kitakyushu, Japan  Customer : Posco Construction  Project Period : 2008. 2 – 2009. 6 Project Feature Project Feature  Reverse Type Bag Filter designed by KC Cottrell  Main equipments manufactured in China Collaboration Collaboration KC Cottrell: Bag Filter Design, Management, Test Operation KC Cottrell: Bag Filter Design, Management, Test Operation China Supplier: Equipment Manufacture China Supplier: Equipment Manufacture Source: KC Cottrell

21. II. Green Industry in Korea KC Cottrell : Technology-Oriented Model Project Overview Project Overview ESP for 152MW Guacolda Power plant ESP for 152MW Guacolda Power plant Location : Huasco, Chile Location : Huasco, Chile Client : Empresa Electrica Guacolda S.A. Client : Empresa Electrica Guacolda S.A. Customer : MHI Yokohama Customer : MHI Yokohama Period : 2007. 11 – 2009. 01 Period : 2007. 11 – 2009. 01 Special Feature Special Feature Export to South America, Technology of China & Korea Export to South America, Technology of China & Korea ESP Design developed by China ESP Design developed by China Collaboration Collaboration Preparation of Proposal : KC Cottrell, China Preparation of Proposal : KC Cottrell, China Information, Strategy, Technical Review : KC Cottrell, Korea Information, Strategy, Technical Review : KC Cottrell, Korea ESP Basic Design & Project Management : KC Cottrell, Korea ESP Basic Design & Project Management : KC Cottrell, Korea Detail Design & Equipment Fabrication : KC Cottrell, China Detail Design & Equipment Fabrication : KC Cottrell, China Source: KC Cottrell

22. Green Future of Korea effect on production inducement: 182-206 trillion KRW (‘09~’13) - annual avg.: 36.3-41.2 trillion KRW (3.5-4.0% of ‘09 GDP Estimate) effect on employment inducement: 1.18-1.47 million jobs(‘09~’13) - annual avg.: 0.23-0.29 million (26-32.4% of total unemployment of 1 st quarter of 2009) Production inducement (unit: trillion KRW) Value added inducement (unit: trillion KRW) Employment Inducement (unit: 10 thousand people) Scenario (if productivity is raised due to green tech. investment) Total206.094.9146.9 Annual Avg. 41.219.029.4 4.0% level of ‘09 GDP Estimate (*’09 gdp estimate: 1,029.5 trillion KRW) 1.8% level of ‘09 GDP Estimate 32.4% level of total unemployment (*total unemployment: 0.9 million, 1 st Q of ’09, Statistics Korea) Source: Presidential committee on Green Growth III. Green Future of Korea