- Information Center
- Investment News
The government will inject 373.7 billion won (US$318.8 million) into research
and development (R&D) this year to help the country expand its sustainable
energy infrastructure, officials said Tuesday.
The plan calls for money going into projects that can permit the country to acquire basic technology in eco-friendly energy generation, promote research tie-ups between large conglomerates and smaller businesses, and lay the foundation for commercial development for green power generation, the Ministry of Knowledge Economy said.
Funds will be used to help the country build 1 million private homes that use solar and thermal energy by 2020, and to establish so-called renewable fuel and portfolio standards, it said.
A renewable fuel standard aims to promote greater use of clean biofuel in the transportation sector, while the renewable portfolio standard is designed to increased production of energy from renewable sources.
In addition, the ministry said it will help South Korean companies raise their competitiveness in the building of large wind power turbines that can be exported abroad.
The R&D fund that will be matched by money from the private sector is expected to help push up exports by 8.61 trillion won and create 16,000 new jobs this year compared to 2011 when state R&D stood at 373.8 billion won. It can also stimulate private sector investment in this field that could go up by 3.55 trillion won in 2012 vis-a-vis the year before.
The ministry, meanwhile, said that from 2007 through 2011 renewable energy related R&D helped bolster private investment by 6.6-fold to 4.65 trillion won. It also said exports and the local job market benefited from the injection of state funds.
Exports related to renewable energy reached 6.92 trillion won last year, up from just 700 billion won in 2007, while jobs in this sector totaled 15,000 from 3,600 four years earlier, it said.