Democratic Party Includes Eco-Friendly Renovation of Aging Rental Housing in Green New Deal

Interview with Kim Seonghwan, Head of the Democratic Party New Deal TF

Kim Seong-hwan, Member of the Democratic Party of Korea./Photo by Yoon Dong-joo doso7@

[Asia Economy Reporter Park Cheol-eung] The project to renovate old rental housing nationwide into energy-saving types will be included in the government and ruling party's 'Green New Deal.' Additionally, plans are being opened for residents to directly participate as shareholders in renewable energy power plants such as wind power, and energy transition special zones will be established in areas where coal power plants are scheduled to close or where employment crises are severe.

Kim Seong-hwan, head of the Korean New Deal TF of the Democratic Party's COVID-19 Crisis Overcoming Committee, stated in an interview with Asia Economy on the 26th, "The green remodeling project to improve energy efficiency is expected to be included in the third supplementary budget, and rental housing will also be a target."

Kim added, "By improving the insulation performance of old rental housing, replacing windows with triple glazing, and simultaneously carrying out wallpaper and flooring replacement, there will be significant job creation and housing welfare effects. I believe the renovation of rental housing will not have a major impact on the real estate market." Since the 1988 plan to build 2 million households, the stock of public rental housing reached 1.46 million households as of the end of 2017.

Until now, the Ministry of Land, Infrastructure and Transport has supported renovation construction costs only for old public buildings through public contests or provided loan mediation and interest support projects in the private sector. While support has been limited and indirect so far, going forward, the scope will be greatly expanded to include rental housing and schools, with financial investment.

Kim said, "In the case of school remodeling, we will create models of 'Digital Green Schools' that reduce cooling and heating while equipping ventilation systems and transforming classrooms into smart classrooms applying IT technology."

To promote renewable energy generation such as wind and solar power, regulatory innovation will be accompanied by plans for local residents to participate as shareholders. Kim said, "We will delegate authority to each local government and enable participation in renewable energy generation projects through small-scale village-level cooperatives. This is a plan to discover energy sources and restructure so that profits return to residents."

Currently, many regulations consider the impact on local residents because external operators conduct renewable energy projects, but in the future, the structure will shift to resident-led projects where residents engage in agriculture while becoming power producers.

Kim also said, "We will promote energy transition special zones as new growth engines in cities centered on coal power or areas where nuclear power projects have been canceled. This is a concept based on renewable energy, and we will prepare business directions suitable for each region through research projects."

He believes it is time to start discussions on introducing a carbon tax that taxes fossil fuel power producers. Kim said, "In Europe, carbon taxes are collected while lowering other taxes. The purpose is not to increase tax revenue but to foster industries that do not emit carbon. After the urgent COVID-19 economic crisis phase passes, Korea should also discuss this."

However, he believes that expansions of subsidies for purchasing future vehicles such as electric and hydrogen cars and mandatory sales systems for future vehicles in the completed car industry should be applied only after sufficient consultation with the industry.

Kim said, "There is a saying that we are heading toward extinction faster than the extinction speed of dinosaurs in the Anthropocene. The 21st National Assembly will create a Green New Deal Basic Act and lay the foundation to achieve carbon neutrality by 2050. We must respond urgently."

Kim Seong-hwan, Member of the Democratic Party of Korea./Photo by Yoon Dong-joo doso7@

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