Pollution Control Equipment
Republic of Korea
Overview
2004 2005 2006 (estimated)
Total Market Size 6,731 6,671 6,253
Total Local Production 6,417 6,404 6,023
Total Exports 327 375 372
Total Imports 642 640 602
(Unit: USD million)
(Source: The above statistics are unofficial estimates by Commercial Service Korea.)
[USD 1=1,200 Won (2004), 1,100 Won (2005), 950 Won (2006)]
As Korea’s industrialization and urbanization raise new environmental concerns, the Korean government continually initiates national environmental projects and strengthens regulatory requirements for polluting industries. This policy enforcement is the key factor driving the pollution control equipment industry in Korea.
CS Korea estimates the size of the pollution control equipment industry at USD 6 billion in 2005. According to industry experts, imports account for about 10 percent of the total market. Japan is the principal foreign supplier with about 47 percent market share, followed by the U.S. with 32 percent market share, Germany and France.
Local environmental equipment manufacturers in Korea have supplied a major portion of environmental projects with medium-level technology and medium-cost products. While they have significantly improved their technology prowess mostly through technology transfer and merger with non-Korean suppliers, they still lack the core technologies to supply the products that meet the government’s stringent regulatory requirements, and are seeking more advanced import products and technologies.
Best Products/Services
Opportunities
The Korean government plays a key role in the pollution control equipment industry, as the regulatory body and, also as the biggest end-user. According to Bank of Korea statistics, the Korean government’s expenditure for environmental protection was estimated at about USD 9 billion in 2005, half of the total national expenditures, (USD 18 billion). The general industry and pollution control service providers followed spending USD 5.5 billion and USD 3.5 billion, respectively. For government projects, the tenders are announced on the Korean government procurement (PPS) website with detailed information on the project scope and contact information.
To enter the pollution control equipment market, U.S. suppliers are strongly recommended to partner with qualified and capable Korean companies who maintain their existing sales network to serve end-users, and are fully aware of regulatory changes that drive the market. Exhibiting at local environmental trade shows can be a good platform to explore the market as well as gain exposure to end-users.
Resources
Trade Show
International Exhibition on Environmental Technologies (ENVEX)
http://www.envex.or.kr/envex/eng/index.asp
Key Contacts
Ministry of Environment
http://eng.me.go.kr/user/index.html
Public Procurement Service (PPS)
Local Contact
(Mr.) Young Wan Park
Commercial Specialist
Commercial Service Korea
U.S. Embassy
32 Sejong-ro Jongro-gu
Seoul 110-710 Korea
Tel: 82-2-397-4164
Fax: 82-2-739-1628
Email: young.park@mail.doc.gov
Website: www.buyusa.gov/korea