S. Korea plans $84.5B in cleantech investments

The South Korean government said today it's planning to invest 2 percent of its annual GDP, or 107 trillion won ($84.5 billion), on environment-related industries during the next five years, according to Reuters.

The cleantech investment is a significant portion of Korea's GDP, especially when compared to other countries. The entire U.S. stimulus package represents 2 percent of GDP, while Beijing's stimulus represents 4 percent of GDP (see Germany, U.S., Australia inject stimulus spending into cleantech). 

South Korea’s presidential office said it thinks the investment—intended to encourage cleantech growth and technology development including renewable energy, LEDs, smart grid, and hybrid vehicles—could jump start as many as 1.81 million jobs.

According to Reuters, under President Lee Myung-bak's regime, Seoul's Blue House has been looking to boost the country’s economy by capitalizing on the global movement to reduce greenhouse gas emissions. However, the government wasn’t specific about how it would fund its new plans.

Reuters also reported that the government intends to require automakers including Hyundai Motor and Kia Motors to raise the average fuel efficiencies of their vehicles or reduce GHG emissions (see Hyundai to start mass producing hybrids in 2009 and Hyundai plans fuel-cell car for 2012).

In January, the South Korean government said it intended to spend 100 billion won ($72.2 million) to spur renewable energy production (see S. Korea plans $72M for renewable energy). The renewable energy fund was expected to attract private investment in solar, wind and hydroelectric power generation. The money was also expected to be used to build renewable projects, including 26 wind power generators on the country's east and west coasts in 2009.

A 2008 JP Morgan report said South Korea is going to be one of the fastest growing solar markets during the next four years, potentially growing power generating capacity 89 percent to nearly 1 gigawatt from solar (see Spain leads 2008 solar market).

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