Samsung, LG, Hyundai Motor to Invest 8 Trillion won in New Energy Biz

Eight business groups including the Hyundai Automotive Group and Samsung Group will invest a total of 8,179.4 billion won in the new energy industry for two years until next year.

According to the Ministry of Industry, Trade and Resources on February, such an investment plan was finalized by LS Industrial Systems, LG Electronics, Hanwha Q Cells, SK E&S, POSCO ICT, Samsung SDI, KT and Hyundai Motor

The investment can be broken down to 496.6 billion won for energy saving systems (ESSs), 6,205.1 billion won for electric vehicles, 997.1 billion won for solar power generation and 480.6 billion won for smart grids and others. By years, this year’s investment will grow more than 40% to 4,057.2 billion won from 2,820.1 billion won from 2015. In 2017, they will invest 4,122.2 billion won.

The Ministry of Industry, Trade and Resources will give support to such companies’ investment by easing regulations and expanding government-run companies’ preemptive investment. In particular, the ministry is moving forward with “convergence alliance with a view to create new business models through exchanges between business sectors and secure future competitiveness by way of fusion and convergence R&D.

Automakers, battery developers, telecommunications and information technology (IT) companies and insurers are already pulling together in an alliance in the electric/smart car sector. A zero-energy building development project is now involving High-efficiency appliance manufacturers, new and renewable energy developers, architectural designer and construction firms

Specifically, the ministry is putting forward an improvement to systems to enhance companies’ profitability and reduce investment risk such as easing regulations on electric power trade, disclosing big data in the electric power sector, easing regulations on the domestic ESS market and expanding the opening of electric car charging stations to the private sector.

Source: www.businesskorea.co.kr/english

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