"New Growth Engine Possible Through Climate Tech, Long-Term Investment Needed in Basic Research"

As international demands to address the climate crisis increase, there is a claim that South Korea can create new growth engines through long-term investment in climate technologies (Climate Technologies).

According to the report "Path to a Carbon-Neutral Economy: The Current Status and Challenges of Climate Technologies in South Korea," released by the Bank of Korea on the 12th, the importance of climate technologies for transitioning to a carbon-neutral economy is being highlighted worldwide as the climate crisis worsens.

Climate technologies are key elements supporting the transition to carbon neutrality by reducing greenhouse gases and adapting to climate change while generating economic profits.

The report pointed out that although South Korea's climate technology innovation performance ranks among the top globally, it shows limitations such as concentration in specific companies and technologies and insufficient qualitative outcomes.

Analyzing patent data registered with the United States Patent and Trademark Office, South Korea ranked third worldwide in the number of climate technology patent applications from 2011 to 2021, indicating a high level. However, South Korea's climate technology patents are concentrated in specific companies and technologies and are evaluated as lacking in qualitative achievements such as follow-up ripple effects, creativity, and versatility.

In particular, more than two-thirds of climate technology patents are concentrated in four major domestic companies?LG Energy Solution, LG Chem, Samsung Electronics, and LG Electronics?and four technology fields: secondary batteries, electric vehicles, renewable energy, and information and communication technology, revealing limitations.

This is mainly attributed to prioritizing short-term results over medium- to long-term needs, insufficient inducement of innovation by government research and development (R&D) support and carbon pricing policies, and weak conditions for securing innovation funding.

The report emphasized that to overcome these issues and leap forward as a first mover in climate technologies, it is necessary to strengthen government support for climate technology R&D, enhance the effectiveness of the carbon pricing system, and expand conditions for supplying innovation funds.

Choi Iseul, a senior researcher at the Bank of Korea Economic Research Institute who authored the report, stated, "If these policies can be expanded by 40%, the innovation performance of climate technologies, reflecting both quantity and quality, will reach the level of the top countries."

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