Posts tagged ‘industry’
A report carried by Yonhap on 23 January cited Ministry of Unification figures showing that production at the Kaesong Industrial Complex expanded 14.4 percent year-on-year with total production reaching USD369.9 million during the January-November period in 2011, up from USD323.3 million worth of production for all of 2010.
Full Title: Measuring the Information Economy
File: ITU-20110915
Source: International Telecommunications Union
Publication Date: 15 September 2011
Relevance: Data released in ITU annual ICT report ‘Measuring the Information Society 2011’, ranks ROK as the world’s most advanced ICT economy, followed by Sweden, Iceland, Denmark and Finland. Read more
On 30 August 2011, Grand National Party (GNP) Chairman, Hong Joon-Pyo was reported by Yonhap news as stating that the construction natural gas and energy transmission infrastructure from the Russian Far East and Siberia, through North Korea to South Korea has the potential to unite the two Koreas behind a joint project. Read more
On 18 May 2011, Iraqi Electricity Minister Raad Shallal announced that STX Heavy Industries Co. had agreed to install 25 power plants to generate a total of 2,500 megawatts in Iraq. The diesel-fired plants will be built within a total period of 13 months. Read more
On 10 February 2011, Minister for the Knowledge Economy, Choi Joong-Kyung, stated that the proposed carbon trading scheme to be implemented by 2013 may not proceed as planned in order to avoid ‘adverse repercussions’.
This reiterates the 7 February 2011 statement by Presidential Secretary for Green Growth, Kim Sang-Hyup, that the scheme could be delayed following substantial industry lobbying. Key industry lobby groups, including the Federation of Korean Industries (FKI), have called for the implementation of the scheme to be postponed until after 2015, claiming it will lead to substantially higher costs and loss of international competitiveness.
The government affiliated research institute, the Korea Institute for Industrial Economics and Trade (KIET), has issued a report detailing potential implications. These include a rise of 1.27 percent in domestic production costs; a 0.18 percent contraction in exports; and 0.58 percent contraction in gross domestic product (GDP); which could result in 0.40 percent reduction in employment. The steel, cement and petrochemicals sectors would be hardest hit, with a contraction against business-as-usual of 7.0-9.0, 2.0-3.0, and 0.8-0.9 percent, respectively.
The United States and Japan have postponed indefinitely plans to introduce carbon trading schemes, amidst concerns regarding economic recovery and growth. However, a carbon trading scheme was considered a central platform in the Lee administration’s plans to establish Korea as leader in the ‘green growth’ era.
China, a key competitor in ‘green growth’, is set to announce a range of green initiatives in its 12th Five Year Plan (2011-2015) to be announced in March 2011. This is rumored to include a carbon trading scheme to be implemented by 2014, with pilot schemes in economic zones and/or industrial sectors to commence as early as 2012.
On 24 January 2011, President Lee met with leaders of the country’s top 30 companies at a luncheon hosted by the Federation of Korean Industries (FKI).
The meeting was marked by announcements that the companies would aim to invest more than USD98.3 billion, create 100,000 new jobs and achieve an export target of USD500 billion in 2011. A key component of the investment plans is the creation of research and development centres to incubate technologies to provide future economic growth.
Also notable was the companies appreciation of Lee’s statement that partnerships between conglomerates and small-and medium-sized enterprises (SMEs) to create sustainable economic growth should come through voluntary action rather than government regulation.
The meeting with the top 30 companies was the sixth since taking office and will be followed by a meeting with leaders of SMEs on 26 January 2011, which will focus on increasing both competitiveness and cooperation. The success of the meeting with SMEs will influence public perceptions of Lee, reflecting concerns that the CEO-turned-President has vested interests in protecting the top companies’ positions in the market.
