Dignitaries, including MOTIE Minister Joo Hyung-hwan, attend a New Year’s gathering for people in the Korean energy industry community at the COEX Intercontinental Hotel on Jan. 24. Also present were LG Electronics President Lee Sang-bong,; SK Gas  President Lee Jae-hoon,; Daesung Group Chairman Kim Young-hoon,; S-Oil CEO Othman Al-Ghamdi,; Yesco Chairman Koo Ja-cheol,; Chaimran Ha Young-gu of the Koreas Federation of Banks, KOGAS President Lee Seung-hoon,; and President Kim Jung-rae of Korea National Oil Corp.,’ and Chairman Park Jong-geun of Korea Energy Foundation.

MOTIE Minister Joo gives a speech at the event. (Photos: MOTIE)

Minister Joo Young-hwan of the Ministry of Trade, Industry and Energy (MOTIE) expressed his determination to implement a policy paradigm shift to focus on eco-friendly, new energy industries despite uncertainties, including protectionist moves and crude oil fluctuations. Minster Joo made the remarks at a New Year’s gathering for people in the Korean energy industry community at the COEX Intercontinental Hotel on Jan. 24. 

Joo said the government has decided to pour 11.6 billion won into installing eco-friendly facility investments for the energy industry by 2030.

Among about 150 people on hand at the event were MOTIE Minister Joo; LG Electronics President Lee Sang-bong; SK Gas  President Lee Jae-hoon; Daesung Group Chairman Kim Young-hoon; S-Oil CEO Othman Al-Ghamdi; Yesco Chairman Koo Ja-cheol; Chaimran Ha Young-gu of the Korean Federation of Banks; KOGAS President Lee Seung-hoon; President Kim Jung-rae of Korea National Oil Corp.; and Chairman Park Jong-geun of Korea Energy Foundation. 

“Uncertainties, including the strengthening of protectionist moves, U.S. interest rate hikes, and international crude oil fluctuations are forecast to get exacerbated this year, but investments should continue to be made to brace for an era of new energy industries, despite these conditions,” Minister Joo said.

Initially, the government plans to set aside 11.6 trillion won by 2030 to decommission 10 decrepit coal-fired power plants, and implement projects to overhaul environment facilities at 43 existing coal-fired units and improve their efficiency. The government will strengthen energy standards of seven items, including electric cookers, refrigerators for commercial use, multi-electric heat pump systems, and air purifiers. These are part of the the government’s steps to expand eco-friendly production and induce the development of energy high-efficient products. 

The MOTIE will conduct a survey into all new and energy projects to fine and solve complaints and grievances the energy industry community has experienced, while implementing policies, including one to offer incentives to residential solar energy projects to ease difficulties in securing new and renewable energy project sites. These are designed to accelerate the development of new energy industries by expanding the spreading of solar energies and the installation of energy storage systems (ESS), smart meters and rapid EV chargers.

The ministry plans to establish such mid- and long-term energy supply and demand plans as the 8th Basic Plan for Electricity Supply and Demand between 2017 and 2031 and the 13th Natural Gas Supply Plan between 2017 and 2031. It plans to diversify energy import channels by importing shale gas from the United States. 

The MOTIE plans to consider the introduction of a system in which electricity charges are interlocked with power purchasing costs, including power generation unit prices. The ministry also plans to allow direct natural gas importers to deal with transactions independently to improve market efficiency.