S. Korea aims to mass produce electric cars starting in 2011

(ATTN: UPDATES with remarks from President Lee in paras 3-5, 7-8, minor changes)
By Lee Joon-seung
SEOUL, Oct. 8 (Yonhap) -- South Korea plans to speed up mass production of
electric cars to better cope with global environmental protection trends and high
fuel prices, the government said Thursday.
The plan, outlined at a meeting of economic policymakers chaired by President Lee
Myung-bak, calls for full-scale production of electricity driven cars in the
second half of 2011 from the original target date of around 2013.
The president said the move will prepare the country for a "fierce battle" in the
world's automobile industry that is already facing new, stringent car emission
standards.
"In that sense, it is clear electric vehicles will play an important role,
especially when the world has to fight global warming," Lee said.
Many countries, including the United States and the European Union, have already
said they plan to enforce tough greenhouse gas emission standards for cars in the
coming years, a move that could significantly reduce South Korean exports unless
the automakers here meet the new standards.
The president said the countries may decide to take even tougher measures to
fight climate change.
"Possibly, there could be a situation in which leaders of the G-20 summit decide
suddenly to intensify regulations on conventional vehicles to fight global
warming. We must be prepared for such a case," he told the meeting.
The Ministry of Knolwedge-Economy said by moving forward the development of
electric vehicles, South Korean automakers will be in a good position to grab the
emerging global market for eco-friendly vehicles.
"If all goes according to plan, local carmakers should be able to grab 10 percent
of the global market for electric cars by 2015, with 10 percent of all
small-sized cars sold in the country being electricity driven vehicles by 2020,"
said Cho Seok, a deputy minister at the Ministry of Knowledge Economy.
Such growth will ensure South Korea ranks among the top four electric car makers
in the world, he said.
The exact size of state funds that will be used has not been set. It will come
from the larger state research and development (R&D) fund earmarked for
eco-friendly technology.
Seoul has already said it will spend around 400 billion won (US$342.6 million) by
2014 to help R&D to make high-performance batteries and other related systems
needed to manufacture electric cars.
The total does not include funds to be used by carmakers like Hyundai Motor Co.
and Kia Motors Corp.
South Korean companies currently build and market fuel efficient hybrid electric
vehicles.
yonngong@yna.co.kr
bdk@yna.co.kr
(END)