Size of Domestic Environment Market

Now it is the time to strengthen competitiveness in the global market, to improve the quality of life for the people and to make an effort to pre-occupy the means for participation in the conservation of the global environment by fostering the environmental industry with indefinite possibility for domestic and international growth as the environment became the key word for restructuring the international market. The number of businesses related to the environment in Korea is 34,196 as of 2011 and the number of employees in the environment industry are 183,538. Some KRW 60 trillion in revenue in the environment industry and about KRW 4.9 trillion of environment industry export were accomplished (2011 Survey of Environment Industrial Statistics, Korea Environment Industry and Technology Institute). According to the result of the survey, it was estimated that there are 34,196 businesses related to the environment, 183,538 employees in the environmental area and about KRW 59.3 trillion in revenue in the environmental sector.     

Status of Nurturing Environment Sector by Ministry of Environment

The Ministry of Environment has been implementing specialized supporting projects for environment sector by establishing an exclusive organization, the Korea Environmental Industry & Technology Institute (KEITI) in April 2009 to systematically nurture the environment industry. 

Korea ① has revised the Support For Environmental Technology and Environmental Industry Act (previously, the Development of and Support for Environmental Technology Act) in April 2011 ② has provided the institutional foundation to foster the environmental industry including the mid and long term comprehensive plan for fostering the environmental industry and advancing overseas. The Ministry of Environment has assisted the mutual cooperation such as technology alliance between large, medium and small companies by hosting a 'resolution rally for environmental companies to grow together' (April 2011) to improve the competitiveness of the small and medium environment companies that are relatively weak in the commercialization of new technologies, brand value, information network, fund operation, and marketing capability. In addition, Korea will induce a specialized and scaled up environmental industry to realize the economy of scale and scope by establishing a 'comprehensive technology support center for the environmental industry' as well as 'the test-bed for environmental industry'. In addition, KEITI has been supporting the 'environmental industry promoting loan’, ‘environmental improvement fund’, and ‘recycling industry promoting loan’ and supporting other projects to develop business from promising new technologies of environmental companies.

Fostering and Supporting Policy for Environmental Industry in Korea
① Establishment of Environment Industry Association

The ‘Korea Environment Industry Association’, which will open a new chapter for the environmental industry in Korea, was launched in December 2012. It will perform a pivotal role in the pre-occupancy of the global environmental market and the fostering of domestic environmental industry. In the future, the Korea Environment Industry Association will perform ① change of information and protection of rights between members, ② research on the system to foster environmental industry, ③ information survey for the overseas market, and ④ operation of the overseas market development group. At the same time, it performs the mid-long term tasks such as ⑤ surveying of performance, ⑥ certification of environmental technology, and ⑦ education for the environmental technologies and its scope of work will be gradually expanded in the future. The Ministry of Environment ① expects to maximize the synergy effect by linking the KEITI and ‘Korea Environment Industry Association in the project for fostering the domestic environmental industry and advancing into the global market by ‘the Third Plan for Fostering Environmental Technology and Industry' (2013~2017) and ② announced the plan to establish a successful model to grow together in the environment sector by inviting some 500 companies in large, medium, and small size as member companies of Korea Environment Industry Association by 2017.

②  Appointing super companies for environment industry

The designation of good environmental companies is a system first introduced in 2012 under the slogan of expanding the environmental industry and strengthening the inroads into the global environmental market, providing various benefits to selected promising environmental companies. The Ministry of Environment and the KEITI prepared systematic institutional framework for the operation of the system including the enactment of related notices by Minister of Environment on the basis of Support for Environmental Technology and Environmental Industry Act. Four stage evaluations including pre-review, evaluation committee meeting, site inspection, designated evaluation are performed, and good environmental companies are selected based on indictors, business accomplishment, superiority of the technology competence, growth, profitability, export competitiveness and employment creation.
The Ministry of Environment selected final 10 companies as the ‘good environmental companies in 2012’ to expand their competitiveness in the global environmental market and to lead the domestic environmental industry based on such an institutional system.  The companies were selected among small-and-medium sized companies and leading companies, which lead the environment industry of Korea throughout many fields such as the water quality, air, waste, soil and energy. Those selected companies ① will be supported for the overseas marketing and management consulting along with brand advertisement in Korea and overseas besides direct support, and ② will receive indirect support such as interest reduction for the environmental policy promoting fund. The average employees of these good companies are 60 and they employ 10 times more manpower compared to the average of environment industry (about 6 workers), contributing to the creation of workplace with 29% of employment increase. The Ministry of Environment plans to provide multi directional support to the selected good environmental companies so they can grow further in the overseas market at the time when the global environmental market is rapidly growing primarily centered in developing countries.
③ Report on the environment industry Statistics

With the increased interest for realization of a green country, the Report on the Environment Industry Statistics is prepared ① to strengthen the national competitiveness by intensively fostering the environmental technology and industry ② to promote the wealth and employment creation as an economic activity area, and ③ to provide the basic data for the comprehensive diagnosis and systematic analysis on the alternatives for the national environmental industry and technology policy by identifying the structure and status of the Korean environmental industry. The Ministry of Environment and Statistical Office jointly prepared a report as a sub-task of the Environmental Industry Development Strategy since 2001.   
④ Support the fund for fostering the environment industry

Funding to foster the environmental industry has been granted in the magnitude of KRW 10 billion per year since 2009 for the revitalization of environmental businesses and production of technology business. The KEITI has supported the fund to strengthen the infrastructure of the environmental industry and to support projects contributing to the promotion of waste reuse and environment conservation according to Clause 3, Article 6 of the Development of and Support for Environmental Technology Act, Article 56 of the Framework Act on Environmental Policy (Support of the Environment Control for Business Providers), Article 31 of the Act on the Promotion of Saving and Recycling of Resources (Support of the Fund).

  Environmental improvement industry promoting fund

The ‘environmental industry promoting fund’ amounting to KRW 10 billion per year has been provided to revitalize businesses and to produce technology businesses for the environmental industry. The loan can be made for the areas such as cost for facilities, cost to produce business with developed technology, cost to advance into the overseas market, cost to prepare basis for growth, and cost to support logistics and sales. The supported areas for loans include ① the cost for production, purchasing, installation, and construction of the environmental companies or environmental facility production companies, ② cost for production, purchase, and installation of equipments, devices, and facilities required for the business development of environmental technology, ③ cost for the information gathering, advisory consulting and marketing promotion for advancement  abroad, ④ cost to prepare base of growth for environmental industry, and ⑤ cost for logistics and sales to promote the purchase of green products.

▲  Environmental improvement fund
Korea Environment Industry and Technology Institute (KEITI) has supported KRW 40 billion per year through the operation of the environmental improvement fund to install environmental pollution control facilities from 1984. The supported areas for environmental improvement fund include the installation of environmental pollution control facilities to treat air, water quality, soil, and odor within the limit of KRW 3 billion, and the fund for technology development within KRW 400 million.

  Recycling industry promoting fund
The KEITI has supported the recycling industry promoting fund in the magnitude of KRW 65 billion per year for the management of environmental companies and production of business for the technology. Supported areas for the recycling industry include the cost for facilities, cost for making business with developed technology, cost for technology development, cost for management stabilization, and cost for logistics and sales support. The funding is available within KRW 2.5 billion, KRW 1 billion, or KRW 400 million is available depending on the area of support.
⑤ Environment industry test-bed

Korea is planning to establish the 'environment industry test-bed' to provide a total service for the entire cycle of the environmental industry from the development of environment technology, demonstration test, production of test products, creation and  nurturing of business, and overseas marketing for the period of 4 years from 2013 to 2016 in 119,300 m2 of land and 52,808 m2 of building with the national treasury of KRW 156 billion. The construction of the environment industry test-bed is reflected in 'The Third 5-year Plan for Environment Technology and Environment Industry', which consists of a demonstration research support center, a demonstration laboratory, and a production support center. It is expected to be the center of the environmental technology and industry in Korea.
⑥ Fostering specialized manpower for environmental industry

The Ministry of Environment has been conducting a project to support the innovation of environmental technology education by investing KRW 20.8 billion from 2005 till 2014 (10 years). This project is being implemented with the purposes ① to support courses on industry-academia cooperation in graduate schools to foster an advanced level workforce, ② to nurture 10 hub graduate schools for the manpower in environment technology, and ③ to foster qualified manpower with cutting edge expertise, complex environmental technology in response to the demand of environmental industry. Accordingly, the Ministry of Environment: ① has implemented 9 environmental manpower fostering projects including a specialized graduate school for climate change; ② has been implementing a project to foster customized manpower for on-site work such as greenhouse gas control, soil, ground water, and reuse of wastes since 2011; ③ has fostered the field application oriented advanced manpower to supply qualified personnel for the environmental industry in the future; ④ has extended educational programs for environment services such as climate change, risk management, and international environmental restrictions, and has established a human resource management system to respond to the demand of industry through the database for all environment professionals in each part; and ⑤ plans to forster 10,000 high quality experts with master's and doctoral degrees and field oriented experienced professionals by 2013 by operating specialized graduate schools and special educational programs.
⑦  Establishment of comprehensive technology support center for the environmental industry

The establishment of the comprehensive technology support center for the environmental industry for each region is being established to actively foster the environmental industry in line with job creation and strategic export of the environmental industry, which are major projects of the new government.

The comprehensive technology support center for the environmental industry for each region is being established to actively foster the environmental industry in line with  job creation and strategic export of the environmental industry, which are major projects of the new government. The comprehensive technology support center for the environmental industry is a system to support the entire process of the project from the provision of basic technology for environmental industry, joint use of equipments by providing a shared laboratory, and technology development to product development and sales, and it is expected to contribute to the creation of national benefit from the systematic fostering through the integration of the environment industry.
① The Honam center is being built in the land area of 40,000m2 and the total floor area of 8,000 m2 in Gangjin, Cheonnam with the project cost of KRW 29 billion  (KRW 14.5 billion from national treasury) from 2009 till 2012. ② Yeongnam Center will be constructed in the land area of 11,000 m2 and the total floor area of 10,000 m2 in Daegu with the project cost of KRW 39.6 billion (KRW 19.8 billion from national treasury) from 2011 till 2014.

⑧ Support the Advancement of Environmental Industry to Overseas 
    1)  Support to the localization of international consortium project for environmental technology
         Introduction of the localization of international consortium project
      -  Support local demonstration of optimal technology and making business suitable for the local
          environmental conditions jointly with foreign cooperative institutions to expand the advancement
          of the Korean environmental  technologies overseas
      - Supported areas: Practicalization technology for 8 areas of application technologies to solve the
         current environmental issues for each country
       ▸ Measurement and analysis of air, drinking water, sewage and wastewater, wastes, soil, ground
           water, reduction of greenhouse gases, replacement of the hazardous materials
      - Targeted countries: Entire world (Asia, Middle East, America, Europe and Russia)
       ▸ China before 2006 → China and South East Asian countries in 2007 → Entire world after 2011
        Status of support for international consortium for each year

Last modified : 2013-10-24 20:40

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