30 Trillion Won Economic Reconstruction Project Opens... "Focus on Poland's Contract Market"

KCCI-KOTRA, 'Poland Online Briefing' Open on 29th
Sharing Investment and Entry Information in Poland's Energy and Infrastructure Sectors

[Asia Economy Reporter Hwang Yoon-joo] The Korea Chamber of Commerce and Industry (KCCI), in collaboration with the Korea Trade-Investment Promotion Agency (KOTRA), held an online briefing on the theme of "Poland Green Deal and Public Projects" on the 29th.

This briefing was held to understand the trends of the Green Deal policies accelerating in the European region following the European Union's carbon neutrality declaration, and to share investment entry information for Poland, which plans to carry out various public projects such as energy diversification based on EU funds.

Poland is one of the beneficiaries of the EU's 7-year long-term budget plan (2021?2027) and the economic recovery fund to overcome COVID-19, expected to receive approximately 136.4 billion euros (182 trillion KRW) in grants and 34.2 billion euros (45 trillion KRW) in loans. The Polish government announced the economic reconstruction (KPO) program in February this year, investing about 23.6 billion euros (approximately 31 trillion KRW) of the EU funds received by Poland to foster the green energy industry, improve inefficient energy industry structures, promote eco-friendly smart transportation industries, and digital transformation.

On the Korean side, Woo Tae-hee, Executive Vice Chairman of KCCI, Kwon Chang-ho, Head of KOTRA Warsaw Trade Office in Poland, and Lee Cheol-won, Senior Researcher at the Korea Institute for International Economic Policy (KIEP), participated. On the Polish side, Piotr Ostaszewski, Ambassador of Poland to Korea, and Anna Wagozi?ska, Head of the Poland Trade and Investment Office in Seoul, were present.

Poland Trade and Investment Office: Interest Needed in Technologies Applied to Planned Nuclear Power Plants and Infrastructure Projects

Anna Wagozi?ska, Head of the Poland Trade and Investment Office in Seoul, introduced Poland's investment incentives and major projects. She stated that after selecting the technology to be applied to nuclear power plants units 1 and 2 this year, contracts with technology and EPC (Engineering, Procurement, and Construction) contractors will be signed next year. She urged, "Please also take an interest in transportation infrastructure projects such as roads, railways, shipping, and aviation, as well as water supply and sewage network construction projects associated with power plant development."

Additionally, the Poland Trade and Investment Office introduced the Polish government's investment incentives. She said, "They offer exceptional incentives such as up to 15 years of corporate tax reduction, cash support of more than 25% of strategic project investment costs, and property tax reductions for over 5 years." Poland's basic corporate tax rate is 19%, but newly established companies and SMEs with sales under 1.2 million euros (about 1.4 billion KRW) also benefit from a reduced corporate tax rate of 9%.

Following this, Kwon Chang-ho, Head of KOTRA Warsaw Trade Office, and Lee Cheol-won, Senior Researcher at KIEP, forecasted Poland's economic trends and promising entry sectors in line with the European Green Deal promotion.

Kwon Chang-ho, Head of KOTRA Warsaw Trade Office, presented major projects expected to be tendered after this year, including "the waste-to-energy plant in Ł?d? city, solar power renewable energy projects, Gdynia port construction, intelligent transportation system in Wrocław city, and the establishment of the Polish railway GSM-R system," and suggested, "We should seek entry strategies by expanding project orders through strategic alliances with local companies, focusing on globally competitive products."

Lee Cheol-won, Senior Researcher at KIEP, evaluated, "Since joining the EU in 2004, Poland has maintained steady economic growth with increased exports and foreign direct investment, and its macroeconomy is stable." He proposed, "Considering the eco-friendly policies and investment directions of the EU, Poland, and Korea, promising cooperative industries include electric vehicles and batteries, wind energy, industrial robots, and smart cities. It is also recommended to actively utilize public-private partnership (PPP) projects using EU funds in the government procurement sector."

"Korea is the Largest Asian Investor in Poland... Expecting Project Orders Utilizing EU Funds"

Woo Tae-hee, Executive Vice Chairman of KCCI, said, "Poland is a country with very high growth potential due to its large domestic market, relatively low labor costs, and proactive economic development and investment attraction policies," and added, "Except for the impact of COVID-19 last year, it has been the only country in Europe to sustain positive growth since 2005, and solid growth is expected this year as well."

Vice Chairman Woo stated, "Korea invested about 4.8 billion dollars in Poland last year on a cumulative basis, making it the largest investor among Asian countries," and expressed hope that "our companies' orders will further expand in EU fund-utilized projects in the fields of Green Deal, power facilities, and transportation infrastructure to respond to environmental issues."

Piotr Ostaszewski, Ambassador of Poland to Korea, said, "Poland faces the challenge of creating a new energy system within 20 years through the '2040 Poland Energy Policy (PEP 2040),' which includes reducing fossil fuel use, introducing renewable energy such as wind power, and nuclear power," and added, "Poland's energy transition strategy will be a new opportunity for economic cooperation between Korea and Poland."

Meanwhile, Kang Seok-gu, Head of the International Trade Division at KCCI, said, "With the upcoming proposal for legal amendments necessary to achieve the EU Commission's 2030 greenhouse gas reduction targets in June, the transition to a low-carbon economy within EU member states will accelerate," and emphasized, "To expand our companies' participation, it is necessary to continuously monitor and respond to Green Deal policy trends."

The briefing can be viewed from 2 p.m. on Thursday, April 29, through the Korea Chamber of Commerce and Industry website and KOTRA Business YouTube channel. Companies interested in investing in Poland can contact the KOTRA Warsaw Trade Office at biuro@kotra.pl.

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