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November 10, 2009
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| The country’s steel industry agreed to invest a total of 18.7 trillion won ($16.1 billion) over the next three years in capital projects, focusing primarily on installing environmentally friendly technologies. Knowledge Economy Minister Choi Kyung-hwan met with top officials of Korean steel companies - including Chung Joon-yang, chairman of Korea’s largest steelmaker, Posco, as well as Han Kwang-hee, chief executive of Dongbu Steel - at the Grand InterContinental Hotel in southern Seoul yesterday. The steel companies agreed to spend 6.9 trillion won next year and 5.8 trillion won and 5.9 trillion won in 2011 and 2012, respectively. “In order to speed up our recovery from the economic crisis, the steel industry has to play a significant role by increasing investment, expanding exports and finding new markets overseas,” Choi said during the meeting. He also asked the steel industry to participate in cutting down on greenhouse gas emissions as international regulations get stiffer. In response, the steel companies said their facility investment will be focused on implementing technologies that will not only reduce greenhouse gas emissions but also increase the efficient use of energy. However, the industry also proposed that the government continue the temporary tax benefit on investments in order to promote more capital projects by the private sector. Choi emphasized that the government will try to maintain the current tax benefits on investments, adding that now is not the time to abolish such a system. The steel industry also raised concerns over higher costs for electricity used for industrial purposes, which the government recently announced. By Lee Ho-jeong [ojlee82@joongang.co.kr] |
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