"‘Korean Version of IRA’ Needed to Revitalize Green Industry"

National Assembly Climate Crisis Green New Deal Research Group Holds Series of Seminars

[Asia Economy Reporter Kiho Sung] Amidst the global trend of countries strengthening protection for their domestic green industries, including the United States' Inflation Reduction Act (IRA), there are calls for a "Korean-style Inflation Reduction Act." In particular, it is advised that active policy support is necessary, as the survival of manufacturing industries in Korea is impossible without the expansion of renewable energy.

On the 22nd, the National Assembly Climate Crisis Green New Deal Research Group held a "Series Seminar for the Preparation of a Korean-style Green Stimulus Plan" at the National Assembly Members' Office Building. This research group is a gathering of 12 lawmakers engaged in research activities on domestic and international Green New Deal policies, markets, industry trends, and prospects. The group aims to develop national policies and legislative improvements to enhance climate crisis response capabilities and facilitate a smooth transition to a green economy.

At the seminar, Byunghwa Han, a researcher at Eugene Investment & Securities, presented on the topic "The Reality of the U.S. IRA, Its Impact on Green Industry Promotion, and the Green Industry." Han first explained the background of the U.S. Inflation Reduction Act, stating, "With Biden's election, the expansion of the U.S. green industry is accelerating," and added, "As Biden emphasizes jobs to secure electoral victory, especially with a shift toward green industry jobs, the nurturing of the U.S. green industry has become urgent."

The problem is that this movement in the U.S. is spreading worldwide. Especially with the energy crisis triggered by the Russia-Ukraine war, the momentum for green industry growth in the European Union (EU) is also expanding. Han said, "The U.S. and EU are aggressively pushing green initiatives," and added, "The U.S. mandates climate change risk disclosures for listed companies, and Europe is advancing renewable energy plans through 'REPowerEU.'"

Regarding domestic countermeasures, Han emphasized the urgent need for a "Korean-style Inflation Reduction Act." Since the U.S. and Europe link job creation with green industry, the Korean government should also actively support policies. He pointed out, "Although Korea's renewable energy market is growing, the pace is too slow," and noted, "According to the Yoon Suk-yeol administration's 10th Basic Plan for Electricity Supply and Demand, the share of renewable energy is only 21.6%, which is significantly lower compared to the EU's 69% and the U.S.'s over 50% by 2030."

He also stressed that since domestic companies have competitiveness in the green industry, active policy support is necessary to expand domestic jobs.

Han said, "Korean electric vehicle companies are already prepared, and battery manufacturers are expected to maintain a global leading position with growth entering both the European and U.S. markets," and emphasized, "Along with policy support for these companies, the government must actively intervene to reduce dependence on battery minerals."

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