(Unofficial Translation)

Leaders of businesses at the forefront of carbon neutrality, I am glad to meet you all. It is meaningful to hold this strategy presentation meeting with you to mark the first anniversary of Korea’s Declaration of 2050 Carbon Neutrality.

The Government made the declaration, but businesses are the main players ushering in the era of carbon neutrality. Our businesses’ pacesetting efforts have been a great boost for upgrading our Nationally Determined Contribution and preparing carbon neutrality scenarios. I am deeply grateful to our business leaders. I hope this meeting will serve as an opportunity for the private and public sectors to combine insights and capabilities, so we can move toward becoming a leading carbon neutral country.

Business leaders,

As I have always stressed, manufacturing is the root of our economy. Despite the COVID-19 crisis, our manufacturing has achieved a great leap forward and laid the groundwork for accomplishing the fastest economic recovery among the members of the G20. On the strength of manufacturing’s takeoff, our exports and trade have recorded all-time highs this year, making it possible for Korea to stand tall as one of the ten largest economic powerhouses and the eighth largest trading nation in the world.

Even in the age of carbon neutrality, manufacturing still remains our economy’s main player. Countries around the world are already working on turning their carbon neutrality policies into opportunities to make their manufacturing sector more competitive. Major countries are expanding eco-friendly investments as part of their efforts to strengthen competitiveness and reconfiguring carbon-intensive industries into low-carbon ones. Consumers are also choosing eco-friendly products even though they are expensive. Global businesses are demanding carbon neutrality even from their clients and suppliers.

Korean businesses have been bracing for carbon neutrality while transforming their business structures into low-carbon new industries. They have been reorganizing their business lines expeditiously with an understanding that carbon neutrality is an essential investment needed for sustainable growth.

Rather than making new investments in oil refining, SK Innovation is investing earnestly in the battery sector, the key to future cars. Hyundai Motor Company declared its goal of achieving carbon neutrality by 2045 in all stages – from the manufacture and operation of vehicles to their disposal – and began the full-fledged pursuit of that goal along with its suppliers. SsangYong C&E, formerly SsangYong Cement, has added “environment” to its name and is now leading that industry’s low-carbon transition.

Corporate efforts to innovate are showing results in many fields. Our hydrogen-powered cars consistently maintain their No.1 position globally, leading the hydrogen economy with the rapid distribution of hydrogen fueling stations and fuel cells. When it comes to eco-friendly ships, domestic shipbuilders account for more than half of the global market share. The Government will respond with bold support for businesses that take on audacious challenges and innovate.

First, we will increase the competitiveness of the carbon-neutral industrial ecosystem. Assistance for the rapid commercialization of breakthrough technologies will be provided, and technology investments will be expanded across all fields to help achieve the Nationally Determined Contribution. Facility and R&D investment-related tax credits will be increased, and green finance will be revitalized. We will abolish regulations that hinder carbon neutrality and reorganize public procurement and other processes so that carbon reduction efforts can be compensated accordingly.

Second, we will foster carbon neutrality-related industry and technology into new export growth engines. The technologies and experiences accumulated in a transition process are themselves export products as well. We will provide you support, so you can take the lead in eco-friendly engineering, procurement and construction processes as well as in the capture and utilization of carbon and other green technologies. Strong support will be rendered to help secure commanding leads in new industries where we’ve already gained dominant positions such as biohealth; rechargeable batteries and other low-carbon materials, parts and equipment; the hydrogen ecosystem; and eco-friendly transportation.

Third, we will devise customized support strategies for SMEs, middle-market companies and local areas and ensure that the benefits of carbon neutrality are distributed evenly. Since carbon neutral technology is still a future technology, the initial costs are considerable. Developing this technology entails huge burdens because its success is uncertain. The Government will share the burden. Moreover, it will prepare customized support strategies for those likely to suffer during the transition to carbon neutrality and preemptively respond to crises that may occur to vulnerable and local industries in this period of change.

We will promote an ultra-strong carbon neutral ecosystem transition and use it as an opportunity for balanced national development. To this end, the nation’s energy transition will be implemented in a stable and swift manner. The Government will boldly reduce coal-fired power generation with the goal of stopping it completely by 2050. At the same time, we will boldly invest in infrastructure for new energy sources, including power grids, hydrogen and renewable energy, therefore expanding the basis for supplying carbon-free electricity and clean hydrogen. The energy market will be reorganized to make it eco-friendly, and energy prices will be maintained at a reasonable level through technological innovation. We will also do all we can to ensure economic security by securing stable supply chains for rare minerals, hydrogen and other key resources.

Distinguished business leaders,

We have the eco-friendly digital capabilities needed to take the lead in a low-carbon economy. We have the world’s best human resources and technology to spearhead the great carbon neutral transformation as well as the passion and wisdom that have helped us leap from a developing country to an advanced nation. I am confident that we are fully prepared to lead a carbon-neutral era. Businesses are the main players. The Government will assist corporate efforts and become a reliable buttress for carbon neutrality. Let us together build a Republic of Korea that leads the carbon-neutral era.

Thank you.