Korean Climate Change Mitigation Technology Patents at One-Third the Level of Japan

Significantly Lagging Behind Leading Countries Like the US, Japan, and Germany
Calls for Revolutionary Carbon Reduction Efforts

[Asia Economy Reporter Jin-ho Kim] An analysis has raised concerns that South Korea's level of securing climate change mitigation technologies is insufficient compared to so-called leading countries such as the United States, Japan, and Germany. In particular, the number of related patents was only about one-third of Japan's. There is a call for the government to actively support research and development (R&D).

The Federation of Korean Industries (FKI) announced this on the 17th through a report titled "Status and Implications of Climate Change Mitigation Technology Patents." The report was prepared based on data from the Organisation for Economic Co-operation and Development (OECD).

According to the report, South Korea has fewer climate change mitigation technology patents compared to leading countries in climate change mitigation such as the United States, Japan, and Germany. From 2014 to 2018, the cumulative number of South Korea's climate change mitigation technology patents was 8,635, which is about one-third of Japan's total.

In key areas such as hydrogen reduction steelmaking and greenhouse gas capture, utilization, and storage (CCUS), which are breakthrough reduction and absorption technologies, South Korea's competitiveness was also found to be low. The number of patents in South Korea's CCUS sector during the same period was 98, accounting for only 7.1% of the total OECD patents (1,375). The CCUS shares of the United States and Japan were 38.2% and 15.5%, respectively.

Among six major technology fields, South Korea ranked lowest among the United States, Japan, and Germany in five fields except for the energy production, transmission, and distribution sector (3rd place). The six major technology fields are ▲greenhouse gas capture, utilization, and storage ▲wastewater treatment and waste ▲buildings ▲transportation technology ▲product manufacturing and processes ▲energy production, transmission, and distribution.

The FKI analyzed that South Korea's support for large corporations' R&D, which ranks lowest among OECD countries, has significantly affected the securing of climate change mitigation technologies. As of 2021, South Korea's tax reduction rate for large corporations' R&D expenditures ranked 31st out of 37 OECD countries, indicating a lack of incentives. The tax reduction rates for large corporations' R&D in major countries were 19% in Germany, 17% in Japan, and 7% in the United States. South Korea's rate was only 2%.

The report also stated that South Korea's R&D spending is inefficient and government support is insufficient. Although South Korea's R&D expenditure relative to GDP (as of 2020) ranks second in the world after Israel, the qualitative level of patented technologies is low. Particularly, the proportion of government R&D patents excluding the private sector was found to be even more serious.

Accordingly, the FKI emphasized the urgent need to secure technological capabilities in key areas such as CCUS for breakthrough carbon reduction. It explained that expanding R&D investment resources and support in related fields is necessary. The FKI suggested, "In addition to government-led R&D, more active incentives such as tax support are required to promote research and development by the private sector, including large corporations."

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