"Full-Scale Discussions Next Year on Large Corporations' R&D Support for 'Carbon Neutral New Technologies'"

Support Unavoidable in Areas Requiring Large Corporations' Capabilities, Such as Hydrogen Reduction Steelmaking Technology

Choi Jung-woo, Chairman of POSCO. (Photo by POSCO)

[Asia Economy Reporter Moon Chaeseok] Starting next year, plans will be actively pursued to provide research and development (R&D) support to large corporations such as POSCO for new technologies essential to carbon neutrality, including hydrogen reduction steelmaking technology. Discussions will focus on attracting investment for equipment replacement necessary for new technology development, research institute locations, and easing chemical regulations.

On the 22nd at 4 p.m., the Ministry of Trade, Industry and Energy held a 'Carbon Neutral Industrial Transition Committee Working Meeting' at the Korea Chamber of Commerce and Industry on Sejong-daero, Seoul, to discuss carbon neutrality promotion plans in the industrial sector. Attendees included representatives from the Ministry of Trade, Industry and Energy, the Korea Chamber of Commerce and Industry, the Korea Federation of SMEs, the Korea Association of Mid-sized Enterprises, steel, petrochemical, cement, and petroleum associations, and the Korea Institute for Industrial Economics and Trade.

At the meeting, industry and economic organizations requested ▲promotion of large-scale national R&D projects for innovative technologies such as hydrogen reduction steelmaking ▲construction of large-scale green energy (hydrogen, electricity) supply infrastructure ▲financial and tax support through green funds ▲expansion of tax credits for investment in carbon reduction facilities ▲cost support for restructuring traditional industries such as coal after energy transition.

The government is reportedly positive about providing R&D technology support to large corporations. The rationale is that the capabilities of large corporations are essential to advancing carbon-neutral related new technology R&D, so some level of support is inevitable.

An official from the Ministry of Trade, Industry and Energy said, "Since the demand for (carbon neutrality) R&D comes from large corporations, we plan to promote R&D policies on the premise that large corporations will naturally participate."

He added, "For example, in the case of hydrogen reduction steelmaking, full replacement of equipment is required, so large-scale investment is necessary, and research institute locations, chemical regulations, and various charges may be burdensome, but we will try to ease regulations as much as possible. Although nothing has been concretized yet, we will actively discuss R&D, tax, and financial support next year."

However, tax support issues require consultation with tax authorities and regulatory bodies, so it may take some time. Generally, tax law amendments are submitted to the regular National Assembly session in September, so it is said that creating new support measures before then may not be easy.

This content was produced with the assistance of AI translation services.