Domestic and Foreign Environment of Our EconomyDomestic and Foreign Environment of Our EconomyI.I.

Industrial Policy for Green GrowthIndustrial Policy for Green GrowthII.II.

Building the Foundation of the Green EconomyBuilding the Foundation of the Green Economy1.1.Supporting the Spread of the Green ManagementSupporting the Spread of the Green Management2.2.

Strategy for Green Growth and Industrial Development Strategy for Green Growth and Industrial Development II

I.III.

Motorizing the New GrowthMotorizing the New Growth3.3.

32

33

Domestic and Foreign Environment of Our EconomyDomestic and Foreign Environment of Our Economy

34

Unification between the variety of Technologies or Industries is adding higher value to businessesElectric Cars (Machines + Batteries), Smart Phones (IT+Contents), etc.

New Industries such as IT, BT, and NT are promising industries with potential power to grow

U-health(Remote-Diagnosis using IT), Telematics(IT Service Industry with Automobile Base)

The Axis of Growth moving toward the Green Energy and Green Technology : The world is Green-Racing!

(U.S.) Investing150 billion dollars for the next 10 years (Jan. 2009), (Japan) Planning for Innovation Of Energy Technology such as Fuel Cells, LED, etc. (May 2008)(GE) "Green is Green!" : Investment on Wind Power, Water Industry, (Sharp) Ranking the First Place on Sunbeam

35

Environmental regulation is becoming an obstacle to trade technologically

• EU and other major advanced countries are reinforcing the environmental regulations on the chief exports like electric and electronic products, automobiles

* Restriction on Hazardous Substances (RoHS), Enforcing Environment-friendly Plan (EuP), Recycling scrapped cars (ELV), etc.

36

EUROPEASIA

S. AMERICA

OCEANIA

AFRICA

N. AMERICA

JAPAN

AMERICA

CHINA

한국

Expanding to Developing countries such as China, Southeast Asia, etc. (Increasing Agreement

of Restriction on Product Environment)

Arrival of new Era of Amalgamation

Arrival of new Era of Amalgamation

Period of Energy and Climate Change

Period of Energy and Climate Change

Reorganizing the Order of Global Economy

Reorganizing the Order of Global Economy

Rapid change of Business Management EnvironmentRapid change of Business Management Environment

70s70s 80s80s 00s00s

Heavy Chemicals

Heavy Chemicals

Cars & Electronics

Cars & Electronics

IT ManufacturingIndustry

IT ManufacturingIndustry

Using amalgamation, green, etc. as the opportunity to grow

Revealing Entrepreneurial Spirit such as Emerging Markets, etc.

Providing the SustainableInnovative EnvironmentManagement of Global Risk and Fostering Human Resources

37

Reinforcement of International Environmental Regulation For reducing Greenhouse Gas

- Adopting the Frontier Actions like Tariff on Carbon

- U.S. Reinforcement of Regulations on Fuel Efficiency

and CO2

(Supply) limited amount of oil deposit and immanence of the political risk

- Current consumption, the none existent amount of

standard energy:

Fossil Fuel(40years), Natural Gas(60years), Coal(150years)

- Many unexpected risks like U.S. Oil spill accident

in the Gulf of Mexico

-The prospect of Energy consumption(0830 MToe):

China 1,970 3,827 India 12,013 16,790

Creating business opportunity by switching to the idea of Carbon Advantage

Adopting the whole course of Green Business in manufacture, distribution, marketing, etc.

Reinforcing the new business on new recycled energy such as sunbeam or wind power

Developing new businesses such as Energy Saving Service Organization(ESCO), Carbon Banking, etc.

Overseas resources development and expansion of energy plant business

Adopting the whole course of Green Business in manufacture, distribution, marketing, etc.

Reinforcing the new business on new recycled energy such as sunbeam or wind power

Developing new businesses such as Energy Saving Service Organization(ESCO), Carbon Banking, etc.

Overseas resources development and expansion of energy plant business

Reinforcement of Regulations on Product Environment(RoHS, EuP, ELV, etc.)

Spreading to Developing Countries

38

(Demand) Rapid increase in demand in China, India, etc.

39

Industrial Policy for Green GrowthIndustrial Policy for Green Growth

10

Promotion of recycling resources in various

industries

Vitalizing

dissemination of

Green Business

Promotion of Green

Business

City mining production

Remanufacturing

Eco-Industrial complex

Energy Greening

Action on International

Environmental Regulation

Green Partnership

District-Eco

Green business system

Innovation of main industry

Promotion of new business

Establishing Foundation for Green BusinessEstablishing Foundation for Green Business

311

Establishing the Master plan for Reduction on Greenhouse GasAnd Energy Goal Management SystemEstablishing the Master plan for Reduction on Greenhouse GasAnd Energy Goal Management System

Amount of Greenhouse Gas Emission in

Industry and Electricity Generation is

69% of the national total emission amount

Amount of Greenhouse Gas Emission in

Industry and Electricity Generation is

69% of the national total emission amount

Setting up the goal by sector : international competitive edge of industries, national burden, etc.(Energy and Greenhouse Gas Goal Management) Focus on business premises that are over-consuming energy

Expansion of Low Carbon energy source (nuclear power, new recycling, etc.)Develop and supply New reduction Technology(CCS, Smart-Grid, etc.) Supporting on Greening of main industry and improving energy efficiency

[unit : million t CO2]

312

The Concept of the Resources Cycle

Boosting Productivity of Resources (value-added/resources

input) of the industrial activities in various industries

313

The Concept of City Mining

Metallic minerals that are industrial raw materials 1.

widely dispersed in small amount 2. having the scale

of a mine around the living space

* 5g of gold extracted from 1ton of gold ore, 150g of gold

and 1.5kg of silver from 1ton of cell phones

The Concept of Remanufacturing

Making a used product to recover and maintain its

original quality through a series of process

* The market size : Korea 0.7trillion won, U.S. 63 trillion

won

The Concept of the Eco-Industrial Premises

Forming the ecosystem using by-products of businesses,

wastes, produced energy to be used as raw materials in

other organizations

Increased pollution

Depletion of natural resources

Reinforced international Environment Regulation

Construction of Recycle System

Green Growth in Reduced CO2

314

System Improvement: mitigation of requirements for permission on city mining business

Revitalization of the City Mining Industry

Technology Development : Expansion of City Mining R&D (’7.7 billion won in 2010 → 9.6 billion won in 2011)Statistics foundation: operating an analysis of materials flow on 61 industrial metals

Making the infrastructure to create remanufacturing market effective on saving energy resources

Expanding, technology development, and supply on items with certified quality in remanufacturing Promoting various system upgrade on remanufacturing products

Activation of the Remanufacturing Business

Step 1 (2005-2010): Applying the ecological industrial complex on five regions: Ulsan, Yeosu, Pohang, Banwolsihwa, Cheongju, etc.

Promotion of resources circulation in the industrial premises

Step 2 (2010-2014): Adding 3 other regions(8 Hub complex): Busan, Daegu, Jeonbuk, etc. for conurbation of ecological industrial complex(total 38 complexes) by connecting with industrial complex (SPOKE) of 3-4 regions each

15

Promote development and production activities of companies and Institutes on green technology that the users prefer

Provide nation with accurate information On the Green Technology and Green business through Green certification

3.0% increase in yearly energy consumption between 2006-2010

Efforts on maintaining the energy consumption rate to a reasonable level

(Services and Buildings) Making it mandatory to set room temperature to 26℃ in a large building with the energy

consumption of more than 2,000 tons

(Industrial Sector) Carbon Partnership of large and smaller businesses Supporting smaller businesses in energy saving * Establishing the Energy Cycle Network in 8 Eco-Industrial complexes

(Motorization of Energy Saving Industry Growth ) Mandatory ESCO and financial support on Old public buildings

(prevail the public to participate) Induce to participate in driving habit or power insulation in their daily lives

(Services and Buildings) Making it mandatory to set room temperature to 26℃ in a large building with the energy

consumption of more than 2,000 tons

(Industrial Sector) Carbon Partnership of large and smaller businesses Supporting smaller businesses in energy saving * Establishing the Energy Cycle Network in 8 Eco-Industrial complexes

(Motorization of Energy Saving Industry Growth ) Mandatory ESCO and financial support on Old public buildings

(prevail the public to participate) Induce to participate in driving habit or power insulation in their daily lives

316

260

240

220

200

180

260

240

220

200

180

million TOEmillion TOE

’00’00 ’01’01 ’02’02 ’03’03 ’04’04 ’05’05 ’06’06 ’07’07 ’08’08 ’09’09 ’10’10

Supporting in Proliferation of Green BusinessSupporting in Proliferation of Green Business

317

1818

19

Green Partnership Outline for Large-Smaller Enterprises

Green Growth of smaller and Large businesses together

Consulting Organizatio

n

The business partner

Establishing the Green Business System Producing the Green

components and materials

Certain business

Green guidelines on purchases Operating the

support program

Passing down tips on Low carbon and Green Business Support on Low Carbon and Energy efficiency

Supplying Green components and materials Providing information on Green components and materials

22 Consortia in 13 types of business 2003-2010

Promotion of Carbon partnership since 2008

Contents of Core Business

Outline forRegional eco-innovation Business

Supporting regional Smaller businesses with green business

and clean production through Supplying and support from the

Ministry of Knowledge Economy and the local government

Expansion of the Clean Production such as Material

substitution, Improving operation method and process, etc.

Introducing the Green Business and supporting on

environmental regulation action

Contents of Core Business

대구, 인천, 부산, 울산, 대전 등 총 5개 지역 추

진

(참여업체 누계 : 300여 중소기업)

대구, 인천, 부산, 울산, 대전 등 총 5개 지역 추

진

(참여업체 누계 : 300여 중소기업)

Central Gov/local gov

ParticipatingSmall and medium

businesses

Consulting Institution

Monetary aidPromoting

experts

Technical aid,

Promoting environment

experts

With Daegu, Incheon, Busan, Ulsan, Daejun, promoting total 5 regions(participating companies: about 300 small and medium businesses)

20

민간주도 녹색경영 추진체계 구축Implementing Certification of the Green Business System

Implementing Certification of the Green Business System with voluntary and optional private certifying

method (the second half of 2011)* Addition of Reduction on greenhouse gas, energy reduction, and social responsibilities related to the environment based on

the existing environmental management(ISO 14001)

Evaluation on the Green Management Level completed for 344 companies affiliated to KCCI

- The evaluation committee executed visit/introduction evaluation according to the voluntary request of the company

Implementing evaluation on the Green Management Level

Issuing Environmental management system certification when certified with the Green Business System

to reduce the financial burden of the company

- The company can choose either one

Building the Green Business Website

Building and Operating the Green Business Website for Green Business support of a company

- Provide information on the Evaluation on the Green Management Level or Green Industry/Company

* Website address : http//green.korcham.net

At the end of 2010, the International Environmental Agreement from 164 countries concerning areas

such as the atmosphere , water quality, etc. will take effect

EU is leading the International Environmental regulation and the partner country is copying the

similar system.

Present Status of domestic and foreign environmental regulation

•31 of them include the trade regulation measure like import restriction for securing the actual effect

< The present status of the International Environmental Agreement in effect >

Atmosphere

Weather

Fresh water

protection

Maritime

Fisheries

Nature

Life protection

Atomic

Security

Toxic material

wasteThe rest Total

Taking Effect 10 9 66 40 12 8 19 164

Signed in Korea 8 - 23 8 7 3 7 56

* RoHS(Restriction on Hazardous Substance) 4 countries (China, Japan, Korea, the U.S.)·REACH( Registration, Evaluation,

Authorization, and Restriction of Chemicals ) 4 countries (China, Japan, the U.S. Turkey)·WEEE(Waste Electrical and

Electronic Equipment) 4 countries (China, Korea)

* reference : RoHS : Restriction of the use of certain Hazardous Substance in electric and electronic equipment

REACH : Restriction, Evaluation, Authorization and Restriction of Chemicals

WEEE : Waste Electrical and Electronic Equipment

(Environmental Division 「Environmental White Book」, 2009 )

Environmentally advanced countries establish the non-tariff barrier by expanding the environmental

regulation based on the leading green technology

* As enactment/Amendment of environmental law is increasing annually, burden on national companies is getting heavier.

21

Current Action from the government by the environmental restriction (Centering the EU restriction)

22

Name Restriction Contents Current action form the government

REACH(Restriction, Evaluation,

Authorization and

Restriction of Chemicals)

Target Items : All products except agricultural,livestock, and fishery products

Registration, Report. Authorization, Restrictionof Chemicals

the related authorities (environment division,agency) holding the Expo together andexecuting the support project of the realregistration

Supporting companies with education,consultation, and publicity by operating theInternational environment regulation supportcenter

RoHS(Restriction of the use of

certain Hazardous Substance)

Restriction of the use of certain HazardousSubstance containing lead, mercury, cadmium,hexad chrome, PBB, and PBDE

Supporting smaller businesses with the testanalysis, field diagnosis, etc

Operating the Help Desk in 6 bases regionally

WEEE( Waste Electrical and

Electronic Equipment)

Waste Electrical and Electronic Equipment

Operation and support of the recycling ratecomputing system

* Computing system calculating the recycling rate byentering the product information (components,weight, etc.)

ErP(Energy-related Products)

Expanding the target range to the environment-friendly Products, make performing environment-friendly design attach the CE mark, andproviding environment-friendly informationcompulsory

Publishing the booklet with the hands-on workereducation and the performance plan for thecorrespondence on ErP guidelines

ELV(End of Life Vehicle)

Manufacturer’s duty in disposal of scrapped carsand recycling

Prohibit using the 4 heavy metals (lead, mercury,cadmium, hexad chrome)

Re-resourcing technology of scrapped cars foracting on environmental restriction of EU

Motorizing the New Growth Motorizing the New Growth

23

24

Industry of uncovering Climate Change Forming strategies of the systematic development for Green Growth

Other Industries Lacking the systematic approaches for switching to Green Growth paradigm

• Technology counterplan on

Climate Change

• Innovation on environment - friendly

process

• Creating the market for

environment-friendly materials

• Solving CO2 problems caused by

transporting

• Investment on Green industry

induction using the connection of

the front and the rear industry

• Connecting to creation of new

industries such as alternative energy,

part development, etc.

• Pioneering the international

environmental regulation

• Targeting the environment-friendly

market in developed countries

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The global market with rapid growth

* 2.8 trillion dollars will be invested by 2030 (IEA)

The industries are expanding their investment and the Outcome is on track

* investment(trillion won): (’07)1.0 (’10e)3.9

* exports(100million dollars) : (‘04)0.65 (’10e)46

Dispersion of the power demand and the expansion on supply ofnew recycled energy, possible

* Reducing 1 trillion won on investment of

the mew development

* 6% of consumers’ voluntary reduction

Obtaining high quality technology such as IT

With the acceleration of competition in development, full-fledged market-forming is expected

* Mitsubishi, Subaru in Japan (July 2007), Hyundai

automobiles(Aug. 2010), BYD in China(2012), GM

in U.S. (not known)

Completed domestic cars can enter into the leading group using the technology power on batteries

Completed domestic cars can enter into the leading group using the technology power on batteries

Improvement of Supplying

system of new recycled energy * Introduction of compulsory system for supply (RPS) (2012)

* 100 Green Homes, pioneering dissemination of public sectors

Technology development and fostering

companies making parts and materials

*supporting the development of next-generation solar batteries, large-sized wind generator, and main parts for fuel batteries

Establishing the intelligent power grids law* Long-term investment and finance and

incentive support, and arranging the regulation basis

Construction and operation of the proof industrial complex (Jeju, 2013)

support smart grid to expand abroad

* establishing collaboration with theState of Illinois in the U.S.

developing the pilot production and the proof business * producing 30 electric cars and proof

Improving related laws and systems

Establishing supply infrastructures

such as charging stations

* Safety, performance evaluation standard, arrangement of basis for installing the charging stations

수요창출 기반확대

26

The Concept of the Policy Target Green Business

New green business altering the efficiency of usage in resources and energy while providing

the user with product quality and function as a service or applying them in industry

* Foreign Cases : selecting 0 promising Green Servicizing of EPA in the U.S., establishing

the supporting network for the Servicizing of the Environmental Administration of EU, the

Green Servicizing project business of the Ministry of Economy, Trade, and industry in

Japan.

Switching the method of consumption and use into

product service and form such as rental or management

services

- Servicizing : Reducing pollution form product consumption and

providing the quality and the function of the goods in a service

form to boost the efficiency of the use

Servicizing products

Eco-E

ffic

iency

Eco-Design

27

Green Business to create an industrial power

Promote industrializing

Technology development for realizing a

business

Demonstration Project for the early

establishment

Improving the business condition

Certification, Standardization, and Banking,

etc.

Improve the system for

Fostering the talented

Globalization, Creating Demands

Developing new business model for elevating environmental performance Prepare measures for finding and promoting the green business in private markets Establishing the collaboration system and Improving the whole process of greening level through spreading and

dissemination of technology Find the measure of diffusing green business through diagnosing the level of the green business and actualizing the

implementation plan

Expansion of Industrialization infrastructure

Establishing the EU product service system Excavating the US green servicizing

Vitalizing Japanese eco-business

Korea Institute of Industrial TechnologyKorea Green Business Association

Business Institute for Sustainable Development

Head of the BureauConsultative

Committee

Secretary of Bureau

(Department of Industrial

Environment )

Depart-

ment(Policy

Strategy)

Excavating

And

Diffusion

Expansion of

the basis for

Greening

Diffusing

the base

Work Crew

Assistant

administrator

Korea

Industrial

Technology

Association

Korea Institute

of Industrial

Technology

Ministry of

Knowledge

Economy

Fostering experts in the industrial circleDeveloping both product servicizing and new business model Green Business Expert Committee

28

Bidet for home medical checkupproduct rental service

(Woongjin Coway, EcoI)

Furniture for 1 person, dream space according to child

growth(,Livart, EcoI)

Green Bicycle with q secondary cell

(Samsung SDI, Ecosian)

Baby care product rental system(Aekyung, Yuhan-Kiimberly)

29

Akari E Support at Panasonic Corporation

(Background) The amount of fluorescent light waste at Japanese workplaces and homes isabout 400 million (about 60,000 tons) yearly. Currently 10% is properly disposed, but90% is being buried.(Business Method) Switching the business from the existing ‘fluorescent light sales’ to aservice called‘ a lighting maintenance ’recycling rate change after switching: 10% → over 90%energy savings from the demanding business 36%, and the cost reduction on maintaininginventory and the maintenance fee 15-20% (SERI, 2010)

Recycle of lighting equipment(recycling of resources)Recycle management firms

Otics Env Inc Recycle ONE Inc(collecting and transporting firms·

network of processing firms

Electric wiring company ·payment agency

Businesscooperation

Equip payLighting equip. SaleProduct paySale

Service Charge Service signing contract Long Term Repairment(Performance Assurance)

CO2 Reductionapproval·Compesation

Registration evaluating organization Of

Credit certification committee

산업폐기물처리수집운반처리위탁

cONTRACT

Mitsui Sumimoto Finance & Lease Inc Panasonic電工㈜

Panasonic電工Techno Service Inc

Contractor

Long-term Loan·Long-term repairment·CO2 Reduction ·Recycle

30

Car-Sharing from Zipcar, Inc. (Background) In big cities like New York or Boston, the density of population is too high that finding parking space is hard, and people spend over $800 for the parking and maintenance fee.

(Business Method) Zipcar owns cars, pays for the parking and maintenance fee, and lease cars per hour. * When using the service, the car usage reduced by 44% and the usage of transfer service for public transportation increased.

Woonjin Coway Cody(Coway Lady)(Background) the producer of water purifier solely responsible for product sales and the consumers do the maintenance and care (changing filters, etc.)

◇ After using, over 70% of purifier recycled (other services: 10-20%)◇ 1,5000 new employment created as business models for Cody (1998-2010, Korea)

* It expanded its business overseas in the US, China, Japan, Thailand, Malaysia, etc.

31

(Business method) provide manufacturing, rental, as well as the maintenance and repairing services

Pest Control Service at CESCO

(Background) Consumers purchase the pesticide

◇ The usage amount reduced by maximum of 90% (EPA, USA) ◇ Holding about 60 sales offices nationally and around 2,000 experts, went into the Chinese market

since 2003

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(Business Method) A pest control service by the experts maximizing its pest control effect and reducing the amount of use with the continuous management

Developing and manufacturing of Pest preventing

Chemical and equipment

Developing and managingUnmanned verminTermination system

Research onRat and vermin extermination

Pest Preventing businessOf residential

environmental sanitary

Vermin extermination business forapartments

Vermin extermination business for restaurants

Vermin extermination business for Industrial

area

333

Green Growth Industrial Development StrategiesGreen Growth Industrial Development Strategies

34

Dispute between Environment and Economy is meaningless

The era of the green paradigm indicating that the environment is the key to the economic

growth has already arrived.

Reinforcement of competitive edge on manufacturing businesses through diversification and higher value-added business area

Green business, as the reinforcement of the new growth power :

Creation of new jobs through vitalization of new businesses

Actions on natural resources depletion through prevention of misuse, enhancing the product usage efficiency

Thank You