Announcement of’K-New Deal Globalization Strategy’ jointly by related ministries… Financial support of 30 trillion won for 5 years
Target 30GW of overseas orders for the Green New Deal in 2025… Discovering projects by strategic market
[에너지신문] Over the next five years, the government will expand overseas orders to 30GW by 2025 through total support such as 30 trillion won in export financing and ODA expansion in the field of green and digital new deals.
On the 13th, the Ministry of Trade, Industry and Energy (Minister Sung Yun-mo) and the Ministry of Science and Technology Information and Communication (Minister Ki-Young Choi) held the 26th Emergency Economy Central Countermeasures Headquarters Meeting and the 9th Korean New Deal Ministers’ Meeting in the overseas market in the field of green and digital new deals. It announced’K-New Deal’s Globalization Strategy’, which establishes a virtuous cycle structure to preempt domestically and expand domestic jobs.
The’K-New Deal Globalization Strategy’ was designed to preemptively respond to the growth of related markets and increased demand for cooperation due to the spread of the global green-digital economy after Corona 19. It was promoted to establish a virtuous cycle structure for spreading the results of’expanding domestic job creation’ through preoccupation.
The government believes that the related markets will grow significantly and the demand for global cooperation for the formation of a new international order will increase according to the transition of the green and digital economy of major countries.To this end, the globalization strategy is paralleled from the initial stage of the New Deal to preoccupy the overseas market. The goal was to establish a virtuous cycle for spreading performance, which expands the creation of domestic jobs.
This strategy aims to achieve 30GW of overseas orders for the Green New Deal by 2025, and to establish a total power support system jointly with the public and private sectors to discover and support promising projects for each of the four strategic markets, including advanced and emerging markets, including the US and EU. did.
First of all, there are 8 tasks in the Green New Deal. Foundation, etc.
Looking at each industry, green energy has high potential for growth in related markets due to the declaration of carbon neutrality in major countries and strengthening response to climate change, and it is predicted that the entry and demand of domestic companies with competitiveness will increase significantly as the global green energy transition spreads. have.
In the green mobility industry, the share of electric and hydrogen vehicles in the global new car has increased sharply from 2% last year to 20-30% in 2030, and eco-friendly ships are also expected to increase to 100% of newbuildings in 2050.
Moreover, Korea’s electric/hydrogen vehicles and eco-friendly ships have excellent performance, such as efficiency and mileage, and batteries are also the world’s best, so they have excellent competitiveness. Therefore, the demand for exports of electric and hydrogen vehicles and eco-friendly ships and local investments by domestic battery companies is expected to increase significantly with the transition to future mobility in response to climate change.
In this regard, in order to expand overseas market entry in the Green New Deal field through analysis of competition conditions by sector, the government is △discovering promising projects by strategic market △Strengthening financial support for exports and orders for Green New Deal △Expanding overseas expansion of green small and medium-sized companies △Strengthening G2G cooperation. Four initiatives were drawn, including promotion of overseas expansion through the project.
First of all, the government will focus on discovering promising projects according to the characteristics of four strategic markets, such as △advanced maturity △Emerging growth △distributed power supply △energy diversification, and intensively support exports and orders.
Advanced mature markets that are actively investing in renewable energy, electric and hydrogen vehicles such as the U.S. and EU expand cooperation such as joint R&D and investment, focusing on promising fields such as electric and hydrogen vehicles and offshore wind power, and expand orders for using IPP (private power generation). It is a policy to do.
In addition, emerging markets with high market growth potential due to new and renewable energy conversion policies such as Southeast Asia and Latin America are connected with Green New Deal ODA, multilateral development banks (WB, ADB, IDB, etc.) and PPP (public-private partnership). Promote energy supply and transmission and distribution network construction projects.
In the promising market for distributed power, which has formed an independent grid-type market in small island regions linked to ESS such as Indonesia and the Philippines, the microgrid business is promoted to support new and renewable energy facilities (solar power, wind power + ESS, etc.) and system facilities in packages. In the energy diversification market that will show high growth in the green energy market, centering on solar power with low power generation costs such as Saudi Arabia and UAE, advance into desalination facilities linked to solar power, offshore wind power, and solar power, and desalination through solar water electrolysis and renewable energy. It is planning to discover projects such as R&D cooperation.
In addition, the Green New Deal TF was installed at the’Overseas Order Support Council’ to establish a joint public-private overseas expansion support system, and support for solving difficulties of entering companies through consultations with local governments focusing on spaces excluded from the four major markets.
In addition, financial support for the Green New Deal will be strengthened, recognizing that financial support is important for expanding overseas expansion. It supplies export/order loans worth 30 trillion won for 5 years (2021~2025), extends the loan limit (up to 10%p), and provides additional interest rate benefits (middle △0.3, small and medium △0.5%p).
In addition, we will establish export insurance tailored to the project, provide mid- to long-term financial guarantee limits on the premise of Korean companies’ participation in outstanding overseas clients, and expand production facility expansion, working capital, and export guarantee and insurance support for monetization of export bonds.
The plan is to expand investment in promising projects such as New Southern and New Northern by first utilizing Global Infrastructure Fund (GIF) No. 7 (103 billion won), which has been established to support overseas investment development projects by expanding support for the Green New Deal Promising Project Fund.
The government expands the proportion of ODA for the Green New Deal from 6.4% to the OECD average (22.7%) among ODAs with high participation of SMEs and mid-sized companies, strengthening the foundation for entry into the developing markets in the Green New Deal. In addition, the establishment of an F/S support system when pursuing orders for follow-up ODA projects of small and medium-sized companies expands the connection of ODA support and orders for follow-up projects, and establishes a collaboration system or consortium between various entities such as large corporations, small and medium-sized enterprises, financial consulting companies It is a policy to spread opportunities for overseas expansion through this.
Lastly, the G2G export contract (domestic company-KOTRA-foreign government) system, which is currently mainly used in the defense industry, is applied to the green sector to increase the possibility of exports and orders by ensuring reliability for domestic companies.
In particular, the establishment of the’Global H2 Alliance’ led by the private sector among major countries will proactively establish a stable global hydrogen supply chain by expanding multilateral hydrogen cooperation such as joint R&D and demonstration and government policy recommendations.
At the same time, the plan is to strengthen cooperation in the Green New Deal by establishing and expanding bilateral consultative bodies by key regions and countries such as the US, EU, New Southern and New Northern regions, establishing green partnerships between governments, joint research on promising technologies, and resolving difficulties for corporate investment. .
On the other hand, in the field of Digital New Deal, it proposes a goal of expanding digital exports from $180 billion in 2019 to $250 billion by 2025.To this end, by major industries such as DNA fusion business, digital government, smart social overhead capital (SOC), and non-face-to-face industries. To strengthen customized overseas expansion support.
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