‘Green Car’ Project Launched in Korea

Korea will launch a large-scale joint government and civilian project to join the group of four leading countries that develop green (future-oriented environment-friendly) cars. Initially, Hyundai Motor, three domestic battery makers — Samsung SDI, LG Chem and SK Energy — the Ministry of Knowledge Economy, and the Korea Automotive Technology Institute will sign a memorandum of understanding to jointly develop lithium-ion batteries for plug-in hybrid cars at the Lotte Hotel in Sogong-dong, Seoul on Monday.

The government plans to provide a fund of W40 billion (US$1=W1,062), W8 billion each year for five years from the second half of this year on the project, while the companies will invest more than W1 trillion.

This is the first time that domestic conglomerates have formed an “alliance” to develop batteries.

Lithium-ion batteries are expected to become the key power source for future hybrid electric cars. They are over twice as efficient, and cheaper to produce, than nickel-hydrogen batteries.

Following competition in the semiconductor and LCD markets, Korea and Japan now look likely to vie for market dominance of this next-generation growth engine.

Hyundai-Kia to Go ‘Green’

The Hyundai-Kia Automotive Group said Monday that it will invest 1 trillion won ($1.1 billion) and hire 4,500 people to boost research and development this year.

In a statement, group chairman Chung Mong-koo said Hyundai will push to make South Korea one of the world’s top four “green car” producing nations with 15 trillion won to support its subcontractors.

The plan comes on the heels of President Lee Myung-bak’s Liberation Day announcement Friday on overhauling industry and making them more eco-friendly.

Chung, who was sentenced to community service following his conviction for breach of trust, was included in a presidential amnesty on the occasion of Liberation Day.

“We will contribute to the government’s plan to become one of the world’s top four `green-car nations’ by producing cars that emit low amounts of carbon dioxide,” he said.

Hyundai will produce a hybrid Avante compact model next year and a mid-size gasoline-natural gas hybrid in 2010.

Sister company Kia Motors will commercialize mid-size and large SUV models based on fuel cells by 2010, while going for hydrogen fuel cars from 2012.

“We will invest 11 trillion won in cars, steel and other group businesses, pouring in about 2 trillion won into our steel mill alone,” Chung said.

For its automotive business, Hyundai will spent 2.7 billion won and hire 600 financial specialists for its newly launched investment and securities sectors.

Hyundai is also conducting cash transactions for subcontractors, encouraging them to join its globalization projects.

“We are helping subcontractors in their effort to learn foreign languages through a consortium organized for job training,” a Hyundai spokesman said.

To make itself a more responsible corporate member of society, the group will launch a youth volunteer group whose membership will exceed 1,000

Source:Chosun/Koreatimes

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