[Biden and Korean Companies] Top Export and Investment Prospects: Eco-friendly and Renewable Energy Sectors

Our Newspaper's Survey of 20 Leading Companies by Major Industry Sectors

[Asia Economy Reporter Yu Je-hoon] The industries that Korean companies have identified as promising sectors for exports and investments to the U.S. under President Joe Biden's administration are eco-friendly vehicles and renewable energy industries. This is analyzed to be positively influenced by the Biden administration's announcement of a $2 trillion (approximately 2,200 trillion KRW) budget allocation for climate change response and the Green New Deal, which are policy priorities.

On the 8th, Asia Economy conducted a survey (multiple responses allowed) targeting 20 major companies in representative domestic industries regarding promising sectors for exports and investments to the U.S. under the Biden era. As a result, 16 companies, accounting for 43.2%, pointed to "eco-friendly vehicles such as electric cars and parts."

The second most promising sector was renewable energy, including wind and solar power, with 12 companies (32.4%) selecting it. The bio-health and semiconductor-display sectors also accounted for 13.5% (5 companies) and 10.8% (4 companies), respectively. In contrast, no companies identified traditional heavy industries such as refining/petrochemicals, steel, or shipbuilding/shipping as promising sectors.

Korean companies' selection of eco-friendly vehicles and renewable energy industries as promising sectors for U.S. investment is interpreted as reflecting the Biden administration's strong climate change response and Net Zero (carbon neutrality) policies. Previously, President Biden and the U.S. Democratic Party adopted the "Biden Plan for a Clean Energy Revolution and Environmental Justice" last year, proposing to invest $2 trillion in federal government budgets over four years and mobilize $5 trillion (approximately 5,500 trillion KRW) through private and state governments.

An electronics and semiconductor-related company that responded to the survey said, "Since President Biden's inauguration, the U.S. has strengthened eco-friendly policies, including rejoining the Paris Climate Agreement," adding, "This trend is expected to lead to policy support in related fields." Another logistics company also stated, "The Biden administration appears to focus on transitioning to a green economy and securing future technological supremacy."

Specifically, the Biden administration plans to add 500,000 electric vehicle charging stations nationwide by 2030 and replace 3 million public sector fleet vehicles with eco-friendly vehicles. It is evaluated that not only automakers and related parts companies strengthening eco-friendly mobility but also vehicle battery companies and semiconductor companies following the electrification trend are likely to benefit.

Additionally, in the renewable energy sector, to achieve net zero by 2050, the plan is to increase the share of wind power in total electricity demand to 20% by 2030 and 35% by 2050, and to encourage renewable energy production by providing various tax credit benefits. Companies related to hydrogen energy, solar power, and wind power are also expected to be beneficiaries. A materials company that identified eco-friendly vehicles and renewable energy as promising sectors responded, "We believe that the market conditions for materials and products related to eco-friendly energy and mobility will improve."

Companies in the food and beverage and health sectors are also anticipating the Biden administration's policies related to the bio-health sector. The impact of COVID-19 remains, and with the elderly population aged 65 and over reaching 50 million, there is abundant demand for food. A company in the health sector stated, "Considering the Biden administration's policy direction to strengthen public healthcare functions, market expansion related to this is also expected."

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