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  • 224 Companies Participate in Labor Ministrys 4.5-Day Workweek Support Program, Exceeding Goals
    224 Companies Participate in Labor Ministry's 4.5-Day Workweek Support Program, Exceeding Goals The 'Work-Life Balance 4.5 Project,' which supports companies reducing actual working hours without decreasing wages, has achieved its goal ahead of schedule in the first half of the year.As of the end of June, the Ministry of Employment and Labor reported that a total of 224 companies participated in the Work-Life Balance + 4.5 Project, surpassing the annual target of 220 companies. The achievement rate stands at 101.8%, with small businesses employing fewer than 50 workers making up 67.9% of the participants.The Work-Life Balance + 4.5 Project supports companies that operate a 4.5-day workweek or similar arrangements through labor-management agreements, allowing for reduced working hours without wage cuts. Various models are being implemented, including a 4.5-day workweek with Fridays off, biweekly specific day off, voluntary four-hour reductions twice a month, and a 35-hour workweek with daily one-hour reductions.The ministry explained that reducing working hours is not just about cutting hours but also leads to increased productivity and talent acquisition. For instance, fintech company WireBarley adopted a 38-hour workweek to attract top talent. By minimizing unnecessary reports and meetings and focusing on concentrated work hours, the company saw a 75% reduction in turnover and a 200% increase in new hires compared to the previous year. The reduction of two hours in standard working hours without wage cuts also resulted in a 5% increase in hourly wages.Eco World Farm, located in a regional industrial complex, implemented a 4.5-day workweek with Friday afternoons off to secure and retain staff. They addressed work gaps through process improvements and tailored AI applications for different departments. Since adopting the 4.5-day workweek, they have hired one new employee and are in the process of hiring three more. Notably, the total weekly working hours for 18 office staff decreased from 673 hours to 648 hours, a reduction of 25 hours.This initiative demonstrates that discussions about reducing working hours can extend beyond large corporations and office jobs to address labor shortages in small and medium-sized enterprises. For companies in regional industrial complexes or those struggling to attract young talent, balancing working hours and work-life balance can be as crucial as wage increases in enhancing recruitment competitiveness.The government plans to support the sustainability of reduced working hours in the workplace by enhancing productivity. A public-private joint productivity improvement support team, launched in May, will focus on supporting technological innovations such as AI adoption, redesigning work processes, and providing vocational training.Minister of Employment and Labor Kim Young-hoon stated, "Reducing working hours is not a one-size-fits-all approach; there are various methods that can suit each company's circumstances. It has been confirmed in the field that labor-management dialogue can lead to tailored systems that yield results, and we will actively support small and medium-sized enterprises in reducing working hours."* This article has been translated by AI. 2026-07-14 12:04:00
  • Exemption from Operating Record Keeping for IoT-Equipped Facilities; Ozone Advisory Standards Revised
    Exemption from Operating Record Keeping for IoT-Equipped Facilities; Ozone Advisory Standards Revised Facilities equipped with Internet of Things (IoT) measuring devices will no longer be required to maintain separate operating records. The government has also revised the standards for lifting ozone advisories to reduce the frequency of repeated advisories and enhance administrative efficiency.The Ministry of Climate, Energy and Environment announced on the 14th that a partial amendment to the 'Air Quality Conservation Act Enforcement Rules' will be announced and implemented on the 15th.The amendment allows facilities that automatically transmit measurement data to a control center via IoT devices to recognize these transmission records as their operating records. As a result, these facilities are expected to experience a reduction in the burden of maintaining daily operating records.IoT measuring devices monitor and manage real-time information such as current, pressure, pH levels, and temperature of emission and prevention facilities, automatically sending the measurement results to the control center.The standards for ozone advisories will also be improved. Previously, both the issuance and lifting criteria were set at an hourly average ozone concentration of 0.12 ppm, leading to repeated advisories and cancellations when concentrations fluctuated around this threshold.The revised enforcement rules adjust the criteria so that advisories issued at ozone concentrations above 0.12 ppm can be lifted when levels drop below 0.1 ppm. This change is expected to reduce unnecessary administrative waste and confusion on-site.Additionally, for reports on the installation and operation of fugitive emission facilities, reports on fugitive dust generation, and reports on volatile organic compound emission facilities, if the reporter is a corporation, they can list their title instead of the representative's name. This means that if the representative changes, there will be no need to file a change report as long as only the title is listed.Furthermore, reflecting the amendments made to the 'Air Quality Conservation Act' in March, the basis for administrative penalties related to fugitive dust generation has been updated, and some terms that caused confusion on-site have been clarified.This amendment is seen as a measure to reduce the administrative burden on facilities using automatic measurement systems and to rationalize the operational standards for ozone advisories, minimizing confusion in the field.Kim Jin-sik, Director of the Air Quality Division at the Ministry of Climate, stated, "We will continue our efforts to improve air quality by reducing fine dust and ozone, while actively reflecting reasonable demands for system improvements from the field to enhance regulations."* This article has been translated by AI. 2026-07-14 12:04:00
  • LG Electronics Supports AI Skill Development for Disabled Youth
    LG Electronics Supports AI Skill Development for Disabled Youth LG Electronics is taking steps to enhance the AI skills and career opportunities for disabled youth.From July 15 to 16, LG Electronics will host the 2026 Global IT Challenge for Youth with Disabilities (GITC) in Daejeon at the Ramada by Wyndham Daejeon. The event is co-hosted by LG and the Ministry of Health and Welfare, with LG Electronics and the Korea Disabled People’s Rehabilitation Association serving as co-organizers.This year’s competition will incorporate generative AI skills into the evaluation categories, further emphasizing AI education.The GITC, which began in 2011, aims to improve IT skills and support social integration for disabled youth. To date, over 5,000 participants from 41 countries have taken part. Last year, the event garnered international attention as a side event of the APEC Leaders' Meeting.Sixty disabled youth selected from 17 regions across the country will participate in this year’s Korean competition. Participants will compete in four categories: 'e-Combination,' which assesses AI-based information retrieval and document creation skills; 'e-Creative,' focused on autonomous vehicle programming; 'e-Content,' which evaluates video production skills; and 'e-Interactive,' which involves creating interactive games using AI.The top four participants will represent Korea at the world competition in Da Nang, Vietnam, from October 27 to 29.Prior to the competition, LG Electronics provided all participants with online and offline training on generative AI usage, video production, and block coding. Additional advanced training for the world competition representatives is planned for September.The competition has also led to tangible outcomes in education and employment. Shin Gi-hoon, the winner of the 2011 Vietnam competition, is currently pursuing a Ph.D. in embedded systems at Pusan National University, focusing on AI implementation in smart devices.Yoon Dae-sik, Executive Vice President of LG Electronics’ External Cooperation Division, stated, "Through GITC, we will actively support youth with dreams and talents in the IT field to grow into future talents equipped with AI skills, overcoming their disabilities."* This article has been translated by AI. 2026-07-14 12:04:00
  • Oh Se-hoon Presents Housing Supply Plan Focused on Regulatory Easing at Cabinet Meeting
    Oh Se-hoon Presents Housing Supply Plan Focused on Regulatory Easing at Cabinet Meeting Seoul City presented a housing supply expansion plan focused on easing regulations for reconstruction and redevelopment at a Cabinet meeting. President Lee Jae-myung requested a separate report on the current status of Seoul's maintenance projects and the reasons for the supply shortage.Oh Se-hoon, the Mayor of Seoul, attended the Cabinet meeting chaired by President Lee on the morning of July 14. This marked Oh's first attendance at a Cabinet meeting since his re-election and his first in about 11 months since August of the previous year.Initially, it was expected that Oh would directly explain the need for regulatory easing and housing supply expansion. However, he did not receive an opportunity to speak. During the meeting, he stated, "I have submitted the report prepared by Seoul City to the Chief of Policy, the Minister of Land, Infrastructure and Transport, and the Deputy Prime Minister. Since it seems I won't have a chance to speak today, I will refer to the report's contents instead."In response, President Lee said, "Please report on how the reconstruction and redevelopment in Seoul are currently progressing, and why there is a general shortage of supply."Prime Minister Han Seung-soo also mentioned the upcoming national discussion forum on housing stability, suggesting that the matter be discussed further.The key proposals submitted by Seoul City focus on easing regulations for maintenance projects. The city requested an increase in the loan-to-value ratio (LTV) for relocation loans related to maintenance projects to 70% and asked for a relaxation of loan regulations to secure additional contributions. They also requested improvements to restrictions on the transfer of membership status and regulations on floor area ratio and rental housing for private maintenance projects.Seoul City believes that if loan and project-related regulations remain in place, the schedule for maintenance projects will be delayed, leading to a long-term housing supply shortage. The city plans to start construction on 310,000 housing units in Seoul by 2031 and designate 85 areas as key strategic maintenance zones that can begin construction within three years to accelerate supply.However, since key systems such as loans, taxation, and restrictions on the transfer of membership status fall under the central government's authority, Seoul City acknowledges that improvements to its own administrative procedures alone will have limitations. The city believes that the government's institutional improvements must accompany these efforts to enhance the effectiveness of supply expansion through maintenance projects.On the same day, the government began a series of discussions starting with a forum hosted by the Ministry of Land, Infrastructure and Transport on housing supply expansion for public housing stability. This will be followed by discussions hosted by the Financial Services Commission on the 15th and the Ministry of Economy and Finance on the 16th. A national discussion forum on real estate, which President Lee will attend, is scheduled for the 23rd to discuss overall real estate policies, including housing supply, finance, and taxation.* This article has been translated by AI. 2026-07-14 11:56:00
  • Hyungji I&C Accelerates Expansion into China and Japan with Asian Fit Strategy
    Hyungji I&C Accelerates Expansion into China and Japan with 'Asian Fit' Strategy Hyungji I&C announced plans to intensify brand exports to China and Japan in the second half of this year. The company aims to leverage its accumulated brand competitiveness and expertise in 'Asian fit' design to penetrate overseas markets.CEO Choi Hye-won has been meeting with local representatives in China and Japan to discuss distribution strategies and establish partnerships for international business.In China, Hyungji I&C signed a strategic memorandum of understanding (MOU) with the Korea-China Business Support Association on June 18 in Shanghai. Following this, the association invited representatives to South Korea for a product evaluation meeting and a department store tour. In the second half of the year, the company plans to open an official brand account on the Chinese short-form video platform Douyin and collaborate with influencers to expand online sales. They are also working on establishing a local pop-up store based on an agreement with the state-owned Shanghai Xuhongqiao Enterprise Service Co., aiming to connect online and offline channels to reach local consumers.In the Japanese market, the women's clothing brand 'Carisnote' will take the lead. Starting in the second half of the year, local distributor Fashion Net will begin product buying, producing customized items that reflect the body types and preferences of Japanese consumers, with plans to showcase initial quantities in early November. Sales will primarily occur through the local home shopping channel Shop Channel.Hyungji I&C believes that its product planning capabilities, quality competitiveness, and experience in designing for consumers with body types similar to Koreans will provide a competitive edge in international markets.Notably, the shirt brand 'Yejak' has recorded cumulative sales of 8.49 million units since joining the Fashion Group Hyungji in 2013 through June of this year. The women's brand 'Carisnote' saw online sales increase by 182% in the first half of this year compared to the same period last year, with overall sales rising by more than 10% during the same timeframe.A representative from Hyungji I&C stated, 'We plan to expand our overseas market penetration based on localization strategies tailored to the characteristics of Chinese and Japanese consumers and the product competitiveness of our Asian fit designs.'* This article has been translated by AI. 2026-07-14 11:56:00
  • Hanmi Semiconductor Reports Record Q2 Operating Profit of 130.3 Billion Won
    Hanmi Semiconductor Reports Record Q2 Operating Profit of 130.3 Billion Won Hanmi Semiconductor achieved its highest quarterly performance since its founding, driven by increased investments in artificial intelligence (AI) semiconductors. The surge in demand for TC bonders, essential equipment for high-bandwidth memory (HBM) production, along with the ramp-up of investments in next-generation HBM4, has resulted in top-tier profitability in the global semiconductor equipment industry.On July 14, Hanmi Semiconductor reported consolidated revenue of 251.1 billion won and an operating profit of 130.3 billion won for the second quarter of this year. Compared to the same period last year, revenue increased by 39.5%, while operating profit rose by 51.0%. The operating margin reached a record high of 51.9% for the quarter.This performance was fueled by increased investments in HBM production facilities due to the expanding AI semiconductor market. Hanmi Semiconductor is currently the global leader in the TC bonder market, which is critical for HBM stacking processes. As global memory companies began mass production of HBM4 this year, the demand for new equipment surged, along with a corresponding increase in demand for MSVP (Micro Vision Placement) equipment.Investments in HBM are expected to continue for the foreseeable future. Major memory companies are preparing to start mass production of the next-generation HBM4E by the end of this year, which is likely to drive demand for next-generation TC bonders capable of handling 12-layer and 16-layer stacking.Global memory firms are also ramping up their investments. Micron has acquired production facilities from Taiwan's AUO and PSMC to expand its HBM production capacity and is also increasing HBM packaging production facilities in Singapore, Idaho, and New York. Recently, it announced plans to raise its semiconductor investment in the U.S. from $200 billion to $250 billion, alongside packaging investments in Hiroshima, Japan.Hanmi Semiconductor is also accelerating the development of next-generation products. The company plans to unveil a prototype of its second-generation hybrid bonder by the end of this year and launch a wide TC bonder in the first half of next year. The second-generation hybrid bonder is aimed at the HBM market, which is expected to gain momentum after 2029.The company is also strengthening its focus on the AI system semiconductor packaging market. Hanmi Semiconductor is supplying 2.5D packaging equipment, including the '2.5D TC Bonder 40', 'FC Bonder 3.5', and 'FC Bonder 75', to global foundries and OSAT (Outsourced Semiconductor Assembly and Test) companies. With the recent expansion of panel-level packaging (PLP) applications in AI semiconductor packaging, demand for related equipment is also on the rise.A Hanmi Semiconductor official stated, "We are expanding our supply of 2.5D packaging equipment in line with changes in the AI semiconductor market and will continue to provide advanced equipment in a timely manner to sustain our growth in the evolving AI packaging market."* This article has been translated by AI. 2026-07-14 11:48:00
  • South Korea Expands Sovereign Wealth Fund with New Strategic Investment Account
    South Korea Expands Sovereign Wealth Fund with New Strategic Investment Account The South Korean government is expanding its sovereign wealth fund by establishing a new strategic investment account within the Korea Investment Corporation (KIC). This initiative aims to provide long-term patient capital for domestic and international strategic investments, supporting three major projects: semiconductors, artificial intelligence (AI) data centers, and physical AI.On July 14, during a Cabinet meeting chaired by President Lee Jae-myung at the Blue House, the government presented its economic growth strategy for the second half of 2026.The strategy emphasizes fostering global competitive growth engines as a key task to boost potential growth rates. The government plans to accelerate the implementation of the three major projects while reforming the sovereign wealth fund and expanding the National Growth Fund to ensure adequate funding.Initially, the establishment of a separate corporation was considered for managing the sovereign wealth fund, but the decision was made to create the strategic investment account within KIC. This approach leverages KIC's existing experience and global network to enhance investment capabilities swiftly.The strategic investment account will serve as a channel for supplying long-term patient capital for domestic and international strategic investments. Its funding will come from government contributions, donations, and operational profits, with profits reinvested, distributed as dividends, or returned to the national treasury to prevent misuse.Investment targets will focus on strategic industries, including the three major projects, essential industries such as finance and infrastructure, and sectors related to national competitiveness and economic security. The government also plans to promote collaborative investments with foreign sovereign wealth funds to attract private and foreign capital into domestic strategic industries.To address concerns about the credibility of foreign exchange reserves, the government will implement measures to strictly separate the existing KIC foreign exchange reserve account from the new strategic investment account. A so-called 'firewall' will be established between the two accounts to ensure that the management of foreign exchange reserves and strategic investment functions do not interfere with each other.Lee Hyung-il, Deputy Minister of Finance, stated, “Currently, KIC has a strong savings-type sovereign wealth fund character, but by adding strategic sovereign wealth fund functions, it will become a comprehensive sovereign wealth fund. However, we will ensure that a firewall is effectively built to prevent mutual influence.”The government's motivation for reforming the sovereign wealth fund is to ensure that the semiconductor boom does not become a temporary economic cycle. With the AI transformation improving semiconductor exports and corporate performance, the strategy aims to connect large-scale investments with increased production capacity and industrial ecosystems to boost potential growth rates.In the semiconductor sector, the government plans to expand memory production capacity and support next-generation power semiconductors. Initiatives include the early completion of fabs in Yongin and Pyeongtaek, the establishment of semiconductor fabs in the southwestern region, and the creation of a testing ground for advanced semiconductor materials and components to maintain a competitive edge.For AI data centers, the focus will be on large-scale investments and establishing a global AI hub. The government will support the construction of AI data centers and work with major international organizations to attract AI cooperation centers to South Korea. Additionally, it will lay the groundwork for activating the data economy through the enactment of a national data basic law.In the physical AI sector, support will be strengthened for seven leading areas, including robotics, autonomous driving, and smart manufacturing. The government plans to select five teams for independent AI model development, ultimately concentrating support on two elite teams to develop globally competitive AI models.Another pillar for funding strategic industries will be the National Growth Fund. The government plans to launch an additional 600 billion won in a public participation-type National Growth Fund in the third quarter, aiming to support over 15 trillion won in funding in the second half of the year.A super-innovation economy fund will be established within the National Growth Fund to enhance support for leading projects in super-innovation economies, such as sensors, actuators, and secondary batteries for humanoids, while backing the commercialization and practical application of advanced technologies.The government will also reform its research and development support methods. It plans to introduce investment-type R&D that includes contributions, creating a structure that allows for recovery and reinvestment. This approach aims to enhance the sustainability and efficiency of financial support for advanced industries.A Ministry of Finance official remarked, “It is crucial to connect the opportunities created by the semiconductor boom with large-scale investments and productivity improvements, rather than letting them slip away as a temporary cycle. We will supply long-term capital needed for strategic industries through the sovereign wealth fund and the National Growth Fund.” 2026-07-14 11:48:00
  • Government to Ease Tax Benefits Reduction for Growing Small Businesses
    Government to Ease Tax Benefits Reduction for Growing Small Businesses The government is set to address the issue of rapidly diminishing tax benefits for small businesses transitioning to mid-sized enterprises, a problem often referred to as the 'growth ladder disruption.' The plan aims to redesign the tax, financial, and regulatory support systems to facilitate the advancement of promising small businesses into mid-sized firms.On July 14, during a Cabinet meeting chaired by President Lee Jae-myung at the Blue House, the government reported on its economic growth strategy for the second half of 2026.This strategy includes measures to overcome polarization by supporting small businesses, micro-enterprises, and vulnerable groups. The government has decided to shift its approach from merely protecting small businesses to promoting investment and growth.To achieve this, the government will reduce the abrupt decrease in tax benefits that occurs when small businesses grow into mid-sized companies. Currently, as businesses expand, they face a sudden reduction in key tax supports, such as special tax deductions for small businesses, which has been identified as a deterrent to growth.To mitigate this, the government will introduce a 'gradual reduction zone' where the special tax deductions for small businesses will decrease incrementally as they transition to mid-sized status. Additionally, measures will be implemented to lessen the reduction in tax credits for production costs related to video and webtoon content as companies grow.Min Kyung-seol, head of the Innovation Growth Office at the Ministry of Finance, explained in a pre-briefing, “We will not simply cut off support when a business graduates from being a small enterprise. Instead, we will focus on providing more support to promising companies.”The financial support system will also be restructured according to the stages of business growth. The government plans to categorize businesses into types such as high-growth, stable growth, stagnation, and decline, and develop tailored support measures for each category. Special emphasis will be placed on supporting companies with growth potential.To this end, a pilot program will be conducted this year, with plans to expand the approach to a comprehensive inter-agency support program for small businesses starting in 2027. The goal is to prioritize 'growth promotion' over mere 'maintenance.'The government will also expand the 'Jump-Up Program' aimed at nurturing promising companies. This program will identify high-potential businesses and provide phased support for technology development, commercialization, international expansion, and financial assistance.Regulations based on company size will undergo a thorough review. The government will examine whether new regulations imposed on small businesses as they grow hinder investment and job creation, and will seek ways to improve these regulations.To strengthen startup support, the government will expand the 'Everyone's Startup' initiative and enhance the utilization of intellectual property (IP) to assist early-stage companies in commercializing their products. Support for youth entrepreneurship will also be pursued to create jobs for young people and foster new growth industries.For micro-enterprises, the government will focus on enhancing competitiveness and providing support for overcoming crises. It will assist promising micro-enterprises with lifestyle-related research and development (R&D) to improve products and services and strengthen brand competitiveness, while also enhancing support for those at risk of closure.Improvements to the Earned Income Tax Credit (EITC) system will be pursued to increase work incentives for low-income earners. The government plans to rationalize the income requirements for the EITC to reduce welfare gaps and expand support for working low-income individuals.To address labor market disparities, the government will promote the protection of workers' rights and improve employment and working hour systems, while seeking reasonable reforms based on surveys of temporary workers. 2026-07-14 11:48:00
  • Government to Tighten Loan Regulations and Reduce Housing-Loan Guarantees
    Government to Tighten Loan Regulations and Reduce Housing-Loan Guarantees The government is set to strengthen loan regulations and reduce the connection between real estate and finance to improve the structure of household funds concentrated in real estate. It plans to gradually decrease housing loan guarantees, excluding certain groups, and expand the scope of the Debt Service Ratio (DSR) application.The Ministry of Finance announced these measures as part of its '2026 Economic Growth Strategy' on July 14.Initially, the government will tighten loan regulations for speculative non-resident homeowners and gradually expand the DSR application range. The DSR is a system that determines loan limits based on the ratio of a borrower's annual income to their principal and interest repayment amounts. The government aims to enhance loan management focused on borrowers' repayment capabilities by broadening DSR application in loan assessments.Additionally, the government will strengthen the soundness management of high-risk mortgage loans. It is considering measures to increase the burden on financial companies for high-risk mortgage loans and impose additional capital reserve requirements. This is intended to reduce the financial sector's exposure to real estate-related risks.A Ministry official stated, "These measures are expected to block speculative loan demand and address regulatory blind spots," adding that they plan to explore institutional improvements, including increasing the burden of high-risk mortgages.Policy financing criteria and operational methods will also be revised. The income requirements for policy loans will be adjusted to use the median income standard instead of the previous method, rationalizing the support targets. The total management of policy loans will be strengthened to enhance the efficiency of resources.The government also plans to alleviate the phenomenon of excessive demand for policy financing during periods of rising market interest rates. To achieve this, it will flexibly adjust the interest rates of fund loans to maintain an appropriate interest rate difference between banks' own mortgage loans and policy financing.The housing loan guarantee system will be restructured. The government will gradually lower the guarantee ratio for borrowers, excluding young people without homes and vulnerable groups, to reduce the scale of guarantees. This action reflects concerns that housing loan guarantees lead to excessive leverage in rental markets.Furthermore, the government will strengthen the guarantee requirements for the rental deposit return guarantee system. It plans to gradually lower the rental price ratio requirement for guarantee enrollment and adjust the guarantee fee rates based on the actual occurrence rate of guarantee incidents. This aims to enhance the sustainability of the guarantee system.Policies to improve the capital market will also be pursued. The government will introduce a productive finance Individual Savings Account (ISA) to guide the flow of funds into productive finance and allow foreign investments in exchange-traded funds (ETFs). A fact book detailing the current state of productive finance will be regularly published to provide relevant information to the market.The government explained that these measures aim to alleviate the real estate-centered financial structure and encourage funds to flow into productive areas such as corporate investment and capital markets. It also plans to establish detailed systems to manage the increase in household debt stably while enhancing the soundness of the financial system.Yoo Byeong-hee, head of the Economic Policy Bureau at the Ministry of Finance, stated, "We are seeking institutional improvements to internalize social costs, such as increasing the burden on high-risk mortgages and imposing additional capital reserve requirements," adding that they are preparing to gradually reduce real estate policy loans and related guarantees. 2026-07-14 11:48:00
  • South Korea Aims for 100GW Renewable Energy by 2030 with K-GX Strategy
    South Korea Aims for 100GW Renewable Energy by 2030 with K-GX Strategy The South Korean government is pushing to achieve an early target of 100 gigawatts (GW) of renewable energy by 2030. The plan includes expanding the supply of carbon-free energy sources such as solar and wind power, and it aims to establish a 'Korean Green Transition (K-GX)' strategy by the end of the year to ensure a stable supply of carbon-free electricity for three major megaprojects, including semiconductor and artificial intelligence (AI) data centers.On July 14, the government discussed and announced these plans during a Cabinet meeting as part of its '2026 Economic Growth Strategy for the Second Half of the Year.' The government aims to reduce reliance on fossil fuels and secure new growth engines through the expansion of renewable energy and the cultivation of green industries. The K-GX strategy is expected to be unveiled in the third quarter of this year.The acceleration of renewable energy expansion is driven by the need to provide stable carbon-free electricity to the rapidly growing semiconductor and AI industries while enhancing energy security. This strategy also aims to respond to the restructuring of international supply chains and the tightening of carbon regulations, while fostering green industries as a new growth engine for future development.The government plans to focus on increasing the supply of renewable energy, particularly solar and wind power. Solar capacity is set to grow from 30.8 GW last year to 87 GW by 2030, while wind capacity will increase from 2.5 GW to 9 GW. This expansion aims to enhance the foundation for carbon-free electricity supply, diversify energy sources, and reduce dependence on fossil fuel imports, thereby increasing energy self-sufficiency.To lower the cost of renewable energy generation, the government will also pursue regulatory reforms. It is considering mandating large power producers to invest in renewable energy facilities to expand large-scale projects and achieve economies of scale. By increasing the size of power generation facilities, the government aims to reduce generation costs and encourage private investment to accelerate the deployment of renewable energy.Efforts to strengthen the competitiveness of green industries will also be intensified. The government plans to support the commercialization of key technologies in next-generation energy industries, including renewable energy, small modular reactors (SMRs), and electric vehicles, while expanding domestic production capabilities. Wind power technology will be advanced with ultra-large turbine innovations, and the electric vehicle sector will enhance the competitiveness of batteries and drive motors to secure supply chain stability and price competitiveness.Additionally, large-scale policy financing will support these initiatives. The government plans to provide 790 trillion won in policy financing for climate-related projects from 2026 to 2035, with more than half allocated to local areas and over 70% directed to small and medium-sized enterprises. Alongside this, a 'Second Basic Plan for Climate Change Response Technology Development (2027-2031)' will be established in September to actively promote the commercialization of carbon-free energy technologies and climate tech.* This article has been translated by AI. 2026-07-14 11:44:00