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  • Fair Trade Commission Issues Corrective Order to Line Construction for Delayed Subcontract Payments
    Fair Trade Commission Issues Corrective Order to Line Construction for Delayed Subcontract Payments Line Construction, known for the apartment "Easy the One," has faced sanctions from the Fair Trade Commission for failing to pay interest on delayed subcontract payments.On July 27, the Fair Trade Commission announced it would impose a corrective order on Line Construction for violating its obligation to pay interest on delayed subcontract payments while outsourcing stonework, gas installation, and telecommunications work for apartments.According to the commission's investigation, Line Construction did not pay a total of 1.16 billion won in interest for delayed payments to 64 subcontractors from October 2019 to July 2024, exceeding the 60-day limit from the date of receipt of the goods.The commission explained that this constitutes a violation of the Subcontracting Act. Under current law, if a primary contractor pays subcontractors more than 60 days after receiving the goods, they must also pay interest for the excess period at the rate announced by the commission.However, after the investigation began, Line Construction paid the entire amount of unpaid interest, totaling 1.16 billion won. Although the initial violation amount was deemed minor enough to warrant a warning, the commission decided to issue a formal corrective order due to the significant number of affected subcontractors and the substantial amount of unpaid interest, emphasizing the need to prevent future occurrences.A commission official stated, "With the establishment of a new construction subcontracting investigation team in the second half of the year, we will strengthen monitoring of unfair subcontracting practices among construction companies ranked below 50 in construction capability assessments."* This article has been translated by AI. 2026-07-27 12:12:00
  • Renewable Energy Stalled by Power Grid and Funding Issues, KDI Says Bottlenecks Must Be Resolved
    Renewable Energy Stalled by Power Grid and Funding Issues, KDI Says 'Bottlenecks Must Be Resolved' As investments in advanced industries, including semiconductors, increase and global sanctions on carbon neutrality tighten, the need for renewable energy deployment is growing. However, two bottlenecks—power grid issues and capital procurement—are hindering the expansion of renewable energy, necessitating a rationalization of subsidy systems, according to research findings.In a report released on July 27, the Korea Development Institute (KDI) stated that to achieve the government's target of 100 gigawatts (GW) of cumulative renewable energy capacity by 2030, an average of over 6.8 GW of new installations must be deployed every six months. This figure is four times higher than the performance over the past 5.5 years.However, the current performance has resulted from the investment of tens of trillions of won in subsidies. The Renewable Portfolio Standard (RPS) alone saw 4.5 trillion won invested last year, with a total of 28 trillion won spent since its introduction in 2012.An analysis of the cost-benefit of the renewable energy subsidy system revealed that the current system incentivizes operators to deploy renewable energy by providing additional revenue from the sale of renewable energy certificates (RECs) alongside generation profits. This combination increases the incentive for power producers to expand their capacity.On the other hand, there has been no investigation into how much benefit this increased deployment provides to consumers who ultimately bear the burden of the settlement subsidies. KDI evaluated the cost efficiency of the RPS-REC system.KDI researcher Lim Hee-hyun stated, "As of 2020, the estimated social benefit per won of subsidy was 1.33 won for solar power and 1.18 won for onshore wind power, indicating that both technologies have confirmed at least minimal economic feasibility as their social benefits exceed costs."However, KDI's analysis warns that if REC prices rise, this benefit could decrease, highlighting the need for fundamental improvements in cost efficiency.In South Korea, the pace of increasing renewable energy generation capacity has outstripped the expansion of the transmission network. From 2003 to 2023, generation capacity increased by 154%, while the expansion of the transmission network was only 26%. The construction of transmission lines has faced challenges, including site selection, community acceptance, and regulatory hurdles.Market conditions to bridge the supply-demand gap are also lacking. Although a legal framework for decentralized energy production, which reduces transmission burdens by generating power near consumption areas, has been established, the practical effects remain minimal due to the lack of regional pricing systems.KDI also identified capital procurement as a significant obstacle to the expansion of renewable energy. The predictability of operators' revenues influences capital procurement. Under the current system, renewable energy operators' income is affected by wholesale electricity market prices (SMP) and REC prices, both of which are highly volatile, making revenue predictions difficult. Consequently, operators are exposed to a volatile market, leading to increased financing costs due to the inability to secure stable long-term revenues.The dual bottlenecks of power grid issues and capital procurement create a vicious cycle. When grid bottlenecks lead to output limitations and connection delays, the actual amount of electricity sold by operators decreases, complicating revenue predictions. Financial institutions, facing increased cash flow uncertainty, demand higher risk premiums, further raising capital procurement costs.KDI warns that if these two bottlenecks are not resolved, the previously mentioned benefits per won of subsidy cannot be guaranteed. The interconnection of power grid issues, capital procurement, and deployment support means that underperformance in one area can delay overall deployment.Researcher Lim emphasized the need to timely expand transmission networks and flexible resources to reduce output limitations and connection delays. He also called for the enhancement of long-term contract systems, increased policy financing, and improved revenue predictability.He suggested designing subsidy policies to facilitate a virtuous cycle of learning effects and supply elasticity, while regularly conducting cost-benefit analyses to maintain the efficiency of support.* This article has been translated by AI. 2026-07-27 12:08:00
  • K-SUUL Awards to Showcase Local Alcohol Producers
    K-SUUL Awards to Showcase Local Alcohol Producers Renowned alcohol brands and hidden brewing talents will compete for the title of 'National Representative Korean Alcohol.' The National Tax Service (NTS) is hosting the '2026 K-SUUL AWARDS' to expand export channels for local small alcohol manufacturers through a survival competition format.The NTS announced that it will accept applications from small alcohol manufacturers wishing to export from July 27 to July 14. Both traditional liquor companies and domestic small alcohol manufacturers can apply online or through the local tax office's excise tax team.The competition will consist of four categories: tacju (traditional rice wine), fermented beverages, soju, and distilled spirits. This year, tacju has been separated into its own category, and preliminary rounds will be held by local tax offices to ensure that award-winning products are not concentrated in specific types or regions.A unique feature of this event is the 'black and white competition,' inspired by cooking survival shows. Liquors that have been produced by intangible cultural heritage artisans or have been recognized in domestic and international competitions will be classified as 'white' and will advance directly to the final evaluation after passing a preliminary document review. A total of eight products will be selected for the final evaluation.Less well-known but competitive local liquors will compete as 'black.' After going through local preliminaries and the finals, a total of 32 products will reach the final evaluation. In the final stage, the eight 'white' products and 32 'black' products will compete, with three products from each category being selected as outstanding liquors, totaling 12 awardees.The evaluation will be conducted through document reviews and blind assessments. To discover products suitable for international markets, the NTS plans to publicly recruit foreign judges alongside domestic experts, citizens, and corporate advisors. The final results will be announced in early November.Award-winning products will receive the '2026 K-SUUL AWARDS BEST' label certified by the NTS. Support will also be provided for display and sales in overseas stores of major distributors, as well as for exhibitions and promotions at the international liquor fair 'K-SUUL Pavilion.' Domestically, collaborations with distributors will facilitate promotional events and tastings to enhance consumer awareness and expand sales channels.In its inaugural year, the K-SUUL Awards attracted 175 small alcohol manufacturers nationwide, showcasing 366 products, with 12 ultimately selected. Award-winning products were sold through online promotions at CU and GS25, as well as at a special event at the Hyundai Department Store in Pangyo.At the Hong Kong International Liquor Fair, the NTS established the 'K-SUUL Pavilion,' facilitating approximately 200 export consultations with overseas buyers. Some products are currently in discussions for export to Cambodia and supply to well-known domestic hotels, indicating ongoing efforts to expand market access.The NTS aims to continuously discover excellent local small alcohol manufacturers and support the export competitiveness and global market entry of K-alcohol through public-private collaboration and partnerships between large and small enterprises.* This article has been translated by AI. 2026-07-27 12:08:00
  • AI Transforms Manufacturing Landscape as Bank of Korea Reports Supply Chain Shifts
    AI Transforms Manufacturing Landscape as Bank of Korea Reports Supply Chain Shifts The rapid restructuring of South Korea's manufacturing production and supply chains is being driven by the spread of artificial intelligence (AI), U.S.-China tensions, and increased protectionism. The semiconductor sector is shifting towards an AI-centric supply chain, while the automotive industry is adapting to changes in eco-friendly vehicles and global production bases.On July 27, the Bank of Korea released an updated report titled 'Mapping Major Manufacturing Production and Supply Chains in South Korea.'Since the first report was published in 2023, the Bank of Korea has noted significant changes in the global industrial environment due to the spread of AI, the growth of Chinese manufacturing, heightened protectionism, and expanded eco-friendly regulations, leading to a rapid restructuring of domestic manufacturing production and trade structures.In particular, the semiconductor industry is experiencing a shift towards an AI-focused global supply chain, driven by increased investments in data centers and AI infrastructure following the rise of generative AI. Demand is moving from traditional CPUs and general-purpose DRAM to GPUs and high-bandwidth memory (HBM), solidifying the AI semiconductor supply chain involving U.S. company NVIDIA, Taiwan's TSMC, and South Korea's Samsung Electronics and SK Hynix.As a result, the structure of semiconductor exports has also changed. Taiwan, which accounted for 9.0% of semiconductor exports in 2022, is projected to rise to 19.9% by 2025, becoming the second-largest exporter after China. Meanwhile, while China maintains its status as the largest exporter, both the export value and share have decreased.With the expansion of semiconductor production, imports of materials, components, and equipment have also increased. Notably, reliance on the Netherlands' ASML, a key supplier of EUV lithography equipment essential for advanced semiconductor production, has grown, making the Netherlands South Korea's largest source of semiconductor manufacturing equipment imports. The country also shows high dependence on semiconductor materials and components from China, Japan, and the U.S.The automotive industry is also undergoing a supply chain transformation centered on eco-friendly vehicles. China now accounts for 33.8% of global automobile production, establishing itself as the world's largest electric vehicle producer. In South Korea's automotive import market, the share of Chinese vehicles has surged from 3.5% in 2022 to 37.2% in 2025. Approximately 70% of imported electric vehicles are from China, and all electric buses are sourced from there.Conversely, due to the U.S.'s increased protectionism and policies promoting local production, the share of South Korean electric vehicle exports to the U.S. has plummeted from 33.6% in 2022 to 5.2% in 2025. In response, domestic companies are expanding hybrid vehicle production and increasing local manufacturing bases in the U.S.Jung Sung-yeop, head of the Bank of Korea's Regional Research Support Team, stated, "Manufacturing competitiveness must consider production locations, global supply chains, and inter-country connections. We hope this report serves as a reference for developing policies and corporate strategies to adapt to changes in manufacturing and supply chains in the AI era."* This article has been translated by AI. 2026-07-27 12:08:00
  • Hyundai Motor Group Launches K-New Deal Academy to Train 1,000 Young Talent in Future Mobility
    Hyundai Motor Group Launches K-New Deal Academy to Train 1,000 Young Talent in Future Mobility The government and Hyundai Motor Group are collaborating to train young talent in the field of future mobility. The initiative aims to provide job training in areas such as embedded artificial intelligence (AI) and manufacturing intelligence, supporting young people’s entry into the labor market.On July 27, Minister of Labor Kim Young-hoon attended the joint entrance ceremony for the Hyundai Motor Group K-New Deal Academy 'HINT' at the Hyundai Group Talent Development Center in Gyeongju, where he congratulated the academy's opening and encouraged the trainees.The K-New Deal Academy is a program led by large corporations to design and operate vocational training and various programs tailored to specific industries, aimed at enhancing the capabilities of young people and supporting their entry into the job market. Hyundai's HINT supports the growth of youth based on experiences in the future mobility industry.HINT will operate in seven regions across the country, including Seoul, Gyeonggi, Busan, Daegu, Daejeon, Gwangju, and Cheongju, with a total of 1,000 participants. Trainees will receive foundational job training, specialized courses, career exploration, and employment support programs. The specialized courses will include embedded AI and manufacturing intelligence, along with field programs such as factory tours and hands-on training.Before the entrance ceremony, Minister Kim shared lunch with the trainees in the cafeteria, discussing their job search concerns and expectations for the K-New Deal Academy. Kim Yoo-hyun, a representative of the trainees from Ulsan, stated, "My goal is to leverage my mechanical engineering knowledge from university to secure a job in the future mobility sector. I will use this opportunity as a stepping stone for my career advancement."During the ceremony, Hyundai Motor Group CEO Sung Kim remarked, "The automotive industry is evolving towards electric vehicles and software, and it is crucial to learn and grow in line with these changes. I believe the trainees will develop not only specialized knowledge in future mobility but also problem-solving skills needed in the field."Minister Kim emphasized, "The K-New Deal Academy is a program that combines the efforts of youth with support from the government and businesses to foster their growth. We will expand the K-New Deal Academy to ensure more companies participate and more young people have access to opportunities."* This article has been translated by AI. 2026-07-27 12:08:00
  • Resident Foreign Currency Deposits Increase for Third Consecutive Month, Dollar Deposits Rise by $2.2 Billion
    Resident Foreign Currency Deposits Increase for Third Consecutive Month, Dollar Deposits Rise by $2.2 Billion Domestic resident foreign currency deposits have increased for the third consecutive month, driven by rising customer deposits at securities firms and inflows of corporate current account payments.According to the Bank of Korea's report on 'Trends in Resident Foreign Currency Deposits' released on July 27, the balance of resident foreign currency deposits at foreign exchange banks stood at $113.33 billion at the end of June, an increase of $1.08 billion from the previous month. This marks three months of continuous growth since April.Resident foreign currency deposits refer to deposits held by domestic individuals, domestic companies, foreigners residing in Korea for more than six months, and foreign companies operating in Korea.Last month, foreign currency deposits increased primarily in U.S. dollars and corporate deposits.By currency, U.S. dollar deposits rose by $2.25 billion to $97.8 billion. This increase was attributed to higher customer deposits at securities firms related to margin trading and overseas securities investments. Additionally, large corporations' receipt of current account payments contributed to the rise in dollar deposits.In contrast, yen deposits decreased by $410 million to $7.12 billion due to current account payments. Euro deposits also fell by $460 million to $5.84 billion as some companies repaid loans.By sector, corporate deposits increased by $1.58 billion to $98.99 billion, while individual deposits decreased by $500 million to $14.33 billion.* This article has been translated by AI. 2026-07-27 12:08:00
  • Tokyo Business Travelers Struggle to Find Affordable Accommodations
    Tokyo Business Travelers Struggle to Find Affordable Accommodations "These days, when I have a domestic business trip, I worry more about the hotel than the schedule," said a prominent journalist from a major Japanese newspaper. The surge in foreign tourists visiting Japan has made securing accommodations for business travelers increasingly difficult. With few available rooms and skyrocketing hotel prices, this journalist's newspaper has set a maximum lodging expense of 12,000 yen (approximately $90) per night. While it is still possible to find business hotels in smaller regional cities, this budget is often insufficient in major urban areas like Tokyo and Osaka, forcing travelers to book hotels far from their work locations or, in urgent cases, stay in capsule hotels.The average room rate for business hotels in the Tokyo metropolitan area has risen approximately 52% over the past five years, from 10,779 yen in September 2019 to 16,409 yen in September 2024. This average rate is now 4,409 yen higher than the maximum lodging expense set by the journalist's newspaper, which was previously 1,221 yen lower than the average. Five years ago, travelers could afford to stay in a standard business hotel, but now they must pay over 4,000 yen out of pocket. The upward trend continues, with the Ministry of Internal Affairs and Communications reporting a 3.1% increase in accommodation costs last month compared to the same month last year. According to private research firm Metro Engine Research, the average room rate for business hotels nationwide in April this year was 36% higher than in April 2019, with rates in Tokyo and Kyoto exceeding 40%.While hotel prices have surged, Japanese companies have not adjusted their business travel expense policies accordingly. A survey conducted by expense management firm Concur in October and November last year found that over 70% of respondents felt that company lodging expense limits were inadequate, with 77.5% of those responses specifically related to domestic travel.Even high-income professionals, such as doctors, are feeling the pinch between rising hotel costs and stagnant travel expenses. A survey by medical media outlet m3.com in April last year revealed that 50.1% of 1,767 physician members reported increased lodging costs for business trips compared to a year prior. Some doctors mentioned having to cover approximately 30,000 yen out of pocket for a single domestic conference due to high hotel prices, while others reported being pushed to locations like Hachioji or Machida when trying to attend conferences in Tokyo. Complaints about needing to leave early in the morning due to staying in the suburbs were also common. In particularly expensive Kyoto, some expressed a desire for conferences to be canceled altogether.The rise in hotel prices is not only affecting accommodation choices but also altering how conferences are attended. Some doctors are opting to skip in-person attendance for online courses required for professional certification renewal, while others are choosing to participate only online from the outset due to cost concerns. There have been reports of a significant decrease in conference travel as online streaming becomes more prevalent, indicating that rising accommodation costs are not only causing inconvenience for attendees but also reducing in-person participation.Shortage of Hotel RoomsThe increase in hotel prices in Japan is not solely due to the rise in tourist numbers. The lengthening stays of foreign visitors and a shift from group to individual travel have concentrated demand in urban hotels. For instance, the average length of stay for Chinese tourists increased from six days in the third quarter of 2019 to seven days in the same period of 2024, with per capita accommodation expenses rising from 44,583 yen to 77,783 yen. While group tourists can stay in hotels on the outskirts via charter buses, individual travelers prefer the convenience of urban locations. The number of foreign overnight stays in Japan's three major metropolitan areas rose from 6.78 million in July 2019 to 10.39 million in July 2024, creating competition for hotel rooms between tourists and domestic business travelers.The problem lies in the inability of hotel supply to keep pace with the surging demand. Economic commentator Keiichi Kaya noted that a hotel shortage was anticipated even before the influx of foreign visitors, but uncertainty about sustained demand has led the industry to hesitate on large-scale investments, delaying supply expansion. Even if construction is expedited now, it will be challenging to meet the shortfall in the short term, suggesting that high accommodation costs are likely to persist.Cost pressures are also significant. A labor shortage has driven up the cost of outsourcing room cleaning, and wage increases are being passed on to accommodation prices. Since the minimum wage was revised to exceed 1,000 yen for the first time nationwide from October last year to March this year, the pressure to transfer costs is expected to continue this year.Currently, there are no straightforward solutions. Experts suggest that business travelers may need to endure inconveniences. They recommend abandoning urban hotels in favor of roadside hotels or container hotels near highway interchanges, or expanding options to outer cities like Tachikawa, Funabashi, and Ichikawa in the Tokyo metropolitan area.The most fundamental solution would be for companies to raise their lodging expense limits to match the increased hotel prices. However, many companies are unable to adjust their travel expense policies immediately in response to rising hotel costs. Once a limit is raised, it is as difficult to lower it as it is to reduce wages.Consequently, more companies are opting to manage travel rather than increase costs. They are encouraging spending at average levels by disclosing minimum, average, and maximum transportation and lodging expenses by department or shifting in-person meetings to remote formats. For example, the consumer goods company Unicharm announced in June that it would cut domestic and international business trips by half, saving hundreds of millions of yen annually.Japan's domestic business travel system has long been designed around low and stable prices. As the premise that companies could secure urban business hotels at set lodging expenses has collapsed, the burden of excess costs has shifted to employees, leading to outer-city accommodations and long-distance travel. Companies now face a choice between adjusting lodging expense limits to reflect reality or reducing travel. The sight of business travelers searching for capsule hotels is not merely a reflection of accommodation difficulties; it underscores the disruption of long-standing travel practices that relied on the notion of 'affordable Japan' amid inflation and a surge in foreign visitors.* This article has been translated by AI. 2026-07-27 12:04:00
  • Hefei Model Gains Attention as CXMT Goes Public
    Hefei Model Gains Attention as CXMT Goes Public China's leading DRAM manufacturer Changxin Memory Technologies (CXMT), often referred to as the "Samsung and SK Hynix of China," made its stock market debut on July 27, drawing significant attention to Hefei, Anhui Province. The local state investment platform has invested over 100 billion yuan (approximately $14 billion) in CXMT over nearly a decade, leading to expectations of substantial valuation gains from the IPO.Hefei Ventures Invests Heavily in CXMT and BOEThe memory semiconductor industry is known for its high technical complexity and significant initial investment costs, with long timelines for recouping investments. Hefei has taken on this risk, acting effectively as a venture capital entity by investing heavily in CXMT. The IPO has reignited interest in the so-called "Hefei Model," where local governments act as venture investors in strategic industries.Investment platforms under the Hefei government hold approximately 45% of CXMT's shares. According to Chinese business media, the value of these shares is expected to reach around 1 trillion yuan following the IPO.This is not the first instance of such investment. In 2007, Hefei invested 17.5 billion yuan in BOE, China's largest display manufacturer, which was struggling during the global financial crisis. In early 2020, it also invested 7 billion yuan in NIO, a struggling electric vehicle startup. Additionally, Hefei has partnered with EHang, a commercial drone manufacturer, to promote the commercial operation of passenger-carrying electric vertical takeoff and landing (eVTOL) aircraft in China.Other notable companies receiving investments from Hefei's platforms include display firm Visionox and semiconductor company Nexchip. The focus of these investments has been on sectors that the Chinese government is nurturing as strategic industries, including semiconductors, displays, electric vehicles, and drones. The Hefei Model's core principle is for local governments to secure equity and provide long-term funding to grow the entire industrial ecosystem. Dan Bin, known as China's private equity investment king, has remarked that "Hefei is the largest venture capital institution in China."By utilizing investment funds to attract advanced technology companies and supply chains, Hefei has transformed from a relatively underdeveloped inland city into a prominent industrial hub over the past decade. According to Chinese media, Hefei's GDP growth rate for the first quarter of this year was 6.8%, the highest among Chinese cities with annual GDP exceeding 1 trillion yuan.Local Governments Mimic Hefei Model Amid Real Estate SlumpThe Hefei Model is now gaining traction across China. With years of real estate downturn leading to increased scrutiny from the central government on debt-fueled infrastructure investments, local government investment platforms are seeking new opportunities by funding advanced industry startups, as reported by Japan's Nikkei newspaper.For instance, Wuhan in Hubei Province recently launched a new 1 billion yuan fund focused on artificial intelligence, co-funded by the Hubei provincial government and the Wuhan municipal investment platform. In Changsha, Hunan Province, a state-owned industrial park developer has established a large industrial fund to foster advanced manufacturing in construction machinery and new energy vehicles.The deteriorating environment for overseas funding for China's advanced technology companies, exacerbated by U.S.-China tech competition, has also contributed to the growing role of local government investment platforms. As U.S. investment restrictions tighten and China becomes more cautious about foreign capital access to key technologies and strategic industries, startups in emerging sectors are increasingly reliant on local government investment platforms.However, it remains uncertain whether the Hefei Model can succeed nationwide. The Nikkei newspaper points out that while there are limited high-quality advanced technology companies to invest in, multiple local governments are competing to attract similar strategic industries, which could lead to overlapping investments and overproduction.Moreover, if local governments invest competitively in similar companies simply because they are classified as strategic industries by the central government, there is a risk that funds may flow into less productive sectors or lead to excessive competition among regions. The Chinese government, wary of indiscriminate venture investments by local governments, has recently implemented guidelines to strengthen oversight of private equity funds, strictly controlling the establishment of new investment funds by local governments. Davis Sun, a senior director at Fitch, noted to the Nikkei that the focus is on curbing excessive competition among governments and reducing repetitive investments in the same sectors.* This article has been translated by AI. 2026-07-27 12:04:00
  • South Korea Invests $24.5 Million in Biomass Solid Fuel Development from Livestock Manure
    South Korea Invests $24.5 Million in Biomass Solid Fuel Development from Livestock Manure The South Korean government is set to begin developing technology to utilize livestock manure, primarily used as fertilizer, as a power generation fuel. The initiative aims to convert manure into solid fuel to produce electricity and heat, thereby reducing environmental pollution and expanding the use of renewable energy.On July 28, the Ministry of Climate Energy and Environment and the Ministry of Agriculture, Food and Rural Affairs will hold a kickoff meeting for the 'Biomass Solid Fuel Production and Utilization Technology Development' project at the Summit One Seoul Station in central Seoul, sharing their research and development (R&D) plans.This project is designed to address environmental issues stemming from reduced agricultural land and excessive fertilizer application, while also replacing imported wood pellets and chips with domestic resources for biomass fuel. The government plans to use solid fuel made from livestock manure in power plants to generate electricity and heat, achieving both water pollution reduction and an increase in renewable energy use.From this year until 2029, the two ministries will invest a total of 29.8 billion won (approximately $24.5 million) to develop the necessary technologies for the entire process of producing and utilizing solid fuel from livestock manure. The Ministry of Agriculture will focus on industrializing solid fuel technology, while the Ministry of Climate will enhance technologies for production, utilization, and pollution prevention.The Ministry of Agriculture plans to establish a standardized system for the collection of manure and agricultural byproducts, including tracking and quality control, and to develop low-energy drying technology and dedicated fermentation and drying processes to ensure a stable production base for solid fuel. They will also work on a smart production system to manage the production process in real-time and develop solid fuel that can be used without separate compression or molding.The Ministry of Climate will establish a demonstration facility capable of producing 15 tons of solid fuel per day with a calorific value of over 3,500 kcal/kg, using livestock manure, coffee grounds, and agricultural byproducts. The produced fuel will be used to develop and demonstrate co-firing operations for 330 MW power generation facilities and a 4 MW combined heat and power boiler.Additionally, technologies to reduce environmental pollutants generated during the production and utilization processes will be developed. During production, ammonia recovery and wastewater treatment technologies will be enhanced, while during utilization, catalytic filtration technologies will be tested to reduce air pollutants and verify zero-liquid discharge wastewater treatment technologies. A life cycle assessment (LCA) will also be conducted to confirm greenhouse gas reduction effects.The two ministries aim to establish a collaborative system that links the entire process from raw material procurement and quality control to solid fuel production, utilization, and pollution reduction.Kim Go-eung, Director of the Resource Circulation Bureau at the Ministry of Climate, stated, "The method of handling livestock manure needs a fundamental transformation in response to social and environmental changes. We will actively support technology development to build a solid fuel ecosystem from livestock manure."* This article has been translated by AI. 2026-07-27 12:04:00
  • Ministry of Environment and Army Strengthen Resource Recycling in Military
    Ministry of Environment and Army Strengthen Resource Recycling in Military The government and the Army are enhancing the resource recycling system within military bases. They aim to expand soldiers' practice of waste separation and establish a foundation for securing high-quality recyclable resources.The Ministry of Environment and Energy announced on July 27 that it will sign a memorandum of understanding (MOU) with the Army Headquarters and the Korea Resource Recycling Support Center on July 28 at the Cheongam Building in Sejong City to promote resource recycling.This agreement aims to expand and develop a collaborative project that began in 2016, focusing on strengthening systems and education to help soldiers naturally practice waste separation and resource recycling in their daily lives. It also signifies an effort to enhance the practical implementation of the anti-plastic policy.Under the agreement, the Army will expand resource recycling education for soldiers and activate the waste separation system within military units. They plan to share the amount of recyclable resources generated with the Korea Resource Recycling Support Center to manage performance and increase the use of recycled products made from materials like glass bottles and paper cartons.The Ministry of Environment will continue to provide institutional support to ensure that the military's resource recycling policies are effectively implemented, along with cooperation to improve waste separation and collection systems.The Korea Resource Recycling Support Center will support the provision of necessary items for waste separation and select and reward outstanding military units for their recycling efforts, thereby promoting a culture of resource recycling within the military. They will also push for on-site education and operational improvements.The three organizations plan to continue their collaboration to ensure that the resource recycling culture established in the military spreads to the broader public.Kim Go-eung, Director of the Resource Recycling Bureau at the Ministry of Environment, stated, "The proper waste separation culture in military bases is the starting point for securing high-quality recyclable resources. We will strengthen resource recycling cooperation to actively support the transition to a circular economy society."* This article has been translated by AI. 2026-07-27 12:04:00