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64169
Thu, 06/04/2009 - 09:48
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https://www.oananews.org//node/64169
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S. Korea to improve car fuel economy, develop energy efficiency technology
(ATTN: UPDATES with more information, comments from para 5)
By Lee Joon-seung
SEOUL, June 4 (Yonhap) -- South Korea aims to improve the fuel economy of
automobiles and develop technologies that can cut energy use in the face of
rising crude oil prices, the government said Thursday.
The plan, outlined at the weekly economic policy meeting chaired by President Lee
Myung-bak, calls for raising the future fuel efficiency of locally made vehicles
to surpass requirements set by the United States and Japan, the Ministry of
Knowledge Economy said.
Seoul will also inject research and development (R&D) funds to help companies
develop technologies that can cut back on energy use and implement administrative
measures to get both private businesses and public institutions to join the
nationwide conservation effort, according to the ministry.
The actions are to be pushed forward to counter a steady rise in international
oil prices. The price per barrel of Dubai crude, South Korea's benchmark, reached
US$66.3 on Monday, up from an average $57.9 per barrel for the whole of May.
Resource poor South Korea relies heavily on manufacturing to fuel growth, making
it vulnerable to sharp hikes in crude oil prices. The country has a higher energy
intensity compared with most Organization for Economic Cooperation and
Development members, translating into more energy being used to fuel economic
growth.
"The government's plan focuses on preemptive measures that promise to be more
effective means to conserve energy than regulating demand," said Vice Minister
Kim Young-hak.
He said that compared to other countries, there has been a sharp rise in energy
use that calls for fundamental changes in the country's energy policies.
Energy consumption by households and the transportation sector gained 2.73
percent from 1997 through 2007. For the same period, Japan and Germany posted
increases of 0.05 percent and 0.04 percent, respectively.
The vice minister said the government will allocate 150 billion won (US$120
million) over the next five years to enhancing the fuel efficiency of cars.
Autos made in South Korea are currently about 70 percent as fuel efficient as
those made in Japan. The average South Korean car can go about 11.2 km per liter
of fuel, compared with 16.0 km per liter for Japanese vehicles.
"The plan is to raise the mileage to levels exceeding those set by Japan and the
United States," Kim said, although exact target numbers will decided after talks
with companies. He added that the plan includes building up infrastructure to
facilitate the use of so-called plug-in vehicles and other eco-friendly
small-sized cars.
The U.S. aims to improve fuel efficiency to 16.6 km per liter of fuel, with Japan
pushing for 16.8 km starting in 2016.
"Fuel economy in important if South Korean carmakers want to export their
vehicles abroad in the future," he said.
The senior official said spending less on energy is vital for South Korea to
maintain its current account surplus, which may be threatened if crude oil prices
start to exceed the US$85 per barrel mark.
In addition to vehicle fuel efficiency, the Ministry of Knowledge Economy, which
is in charge of the country's industrial policies, said about 1.6 trillion won
will be used to assist in the development of various technologies that can help
boost energy conservation in consumer and industrial products.
Measures making it mandatory for public companies to use only high energy
efficient products are being considered, along with getting businesses and
companies that use a lot of electricity to set conservation targets, the ministry
said.
Under the plan, more than 5,500 public facilities could be required to use only
high energy-efficient products.
Also Thursday, the government said it is mulling ways to link electricity and gas
prices to reflect fluctuations in crude and natural gas prices.
Such a link could help people cut back on energy spending if prices go up and
reduce the burden on utility companies, which posted huge losses last year
because they could not raise rates despite skyrocketing oil prices.
Policymakers at the meeting, meanwhile, said Seoul is still reviewing the
feasibility of introducing daylight savings system time for the summer months.
yonngong@yna.co.kr
(END)
By Lee Joon-seung
SEOUL, June 4 (Yonhap) -- South Korea aims to improve the fuel economy of
automobiles and develop technologies that can cut energy use in the face of
rising crude oil prices, the government said Thursday.
The plan, outlined at the weekly economic policy meeting chaired by President Lee
Myung-bak, calls for raising the future fuel efficiency of locally made vehicles
to surpass requirements set by the United States and Japan, the Ministry of
Knowledge Economy said.
Seoul will also inject research and development (R&D) funds to help companies
develop technologies that can cut back on energy use and implement administrative
measures to get both private businesses and public institutions to join the
nationwide conservation effort, according to the ministry.
The actions are to be pushed forward to counter a steady rise in international
oil prices. The price per barrel of Dubai crude, South Korea's benchmark, reached
US$66.3 on Monday, up from an average $57.9 per barrel for the whole of May.
Resource poor South Korea relies heavily on manufacturing to fuel growth, making
it vulnerable to sharp hikes in crude oil prices. The country has a higher energy
intensity compared with most Organization for Economic Cooperation and
Development members, translating into more energy being used to fuel economic
growth.
"The government's plan focuses on preemptive measures that promise to be more
effective means to conserve energy than regulating demand," said Vice Minister
Kim Young-hak.
He said that compared to other countries, there has been a sharp rise in energy
use that calls for fundamental changes in the country's energy policies.
Energy consumption by households and the transportation sector gained 2.73
percent from 1997 through 2007. For the same period, Japan and Germany posted
increases of 0.05 percent and 0.04 percent, respectively.
The vice minister said the government will allocate 150 billion won (US$120
million) over the next five years to enhancing the fuel efficiency of cars.
Autos made in South Korea are currently about 70 percent as fuel efficient as
those made in Japan. The average South Korean car can go about 11.2 km per liter
of fuel, compared with 16.0 km per liter for Japanese vehicles.
"The plan is to raise the mileage to levels exceeding those set by Japan and the
United States," Kim said, although exact target numbers will decided after talks
with companies. He added that the plan includes building up infrastructure to
facilitate the use of so-called plug-in vehicles and other eco-friendly
small-sized cars.
The U.S. aims to improve fuel efficiency to 16.6 km per liter of fuel, with Japan
pushing for 16.8 km starting in 2016.
"Fuel economy in important if South Korean carmakers want to export their
vehicles abroad in the future," he said.
The senior official said spending less on energy is vital for South Korea to
maintain its current account surplus, which may be threatened if crude oil prices
start to exceed the US$85 per barrel mark.
In addition to vehicle fuel efficiency, the Ministry of Knowledge Economy, which
is in charge of the country's industrial policies, said about 1.6 trillion won
will be used to assist in the development of various technologies that can help
boost energy conservation in consumer and industrial products.
Measures making it mandatory for public companies to use only high energy
efficient products are being considered, along with getting businesses and
companies that use a lot of electricity to set conservation targets, the ministry
said.
Under the plan, more than 5,500 public facilities could be required to use only
high energy-efficient products.
Also Thursday, the government said it is mulling ways to link electricity and gas
prices to reflect fluctuations in crude and natural gas prices.
Such a link could help people cut back on energy spending if prices go up and
reduce the burden on utility companies, which posted huge losses last year
because they could not raise rates despite skyrocketing oil prices.
Policymakers at the meeting, meanwhile, said Seoul is still reviewing the
feasibility of introducing daylight savings system time for the summer months.
yonngong@yna.co.kr
(END)
