Go to Contents Go to Navigation

S. Korea pledges support for solar industry following U.S. safeguard tariffs

All News 17:44 January 24, 2018

By Kim Eun-jung

SEOUL, Jan. 24 (Yonhap) -- South Korea will expand investment in the solar industry and lower regulations to help local companies cope with rising import restrictions in the United States, a senior official said Wednesday.

The move came after U.S. President Donald took action to impose safeguard tariffs on residential washing machines and all solar products.

The Ministry of Trade, Industry and Energy said it will file a petition with the World Trade Organization against the U.S. decision while it also seeks ways to help local exporters tackle the challenge.

Park Won-ju, the head of the energy department at the Ministry of Trade, Industry and Energy, said the high U.S. tariff is expected to deal a heavy blow to the South Korean solar industry by shrinking demand and causing setbacks in U.S. projects.

South Korea is seeking to raise its ratio of renewable energy to 20 percent by 2030, up from 7 percent in 2016.

"Solar power is one of the most important eco-friendly energy sources and the government plans to lower regulations on building new solar farms and seek ways to improve their profitability," Park said in a meeting with industry officials. "If Korean companies weather this crisis, it would provide an opportunity to improve their global competitiveness."

South Korean companies exported US$1.3 billion in solar cells to the U.S. last year, ranking third in the world after Malaysia and China, according to the ministry data.

As the safeguard action goes into effect in 15 days after signing, major South Korean exporters are expected to face difficulties in adjusting their shipping schedules in the short term and estimating demand under the higher tariffs.

The U.S. government's remedy action also faced a backlash from American solar panel manufacturers over concerns that the rising costs would hamper solar power's competitiveness against other energy sources.

The Solar Energy Industries Association, the national trade association for the U.S. industry, said 30 percent tariffs on imported solar cells and panels will cause the loss of roughly 23,000 American jobs this year and result in the delay or cancellation of billions of dollars in solar investment.

On Wednesday, the trade ministry said it proposed a bilateral meeting with the United States Trade Representatives as early as next week to discuss the safeguard actions on large residential washers and solar panels and modules.

"We will point out that the U.S. safeguard is an excessive action that violates WTO provisions and ask for alleviation or withdrawal of the tariffs as well as compensation measures," the ministry said in a release.

Under the safeguard measure, a 20 percent tariff will apply on the first 1.2 million imported washers in the first year and a 50 percent tariff on machines beyond that number. A 30 percent tariff will be imposed on imported solar cells and modules above 2.5 gigawatts in the first year.

Park Won-ju, a senior official in charge of energy policy at the Ministry of Trade, Industry and Energy, speaks during a meeting with Korean solar panel makers in Seoul on Jan. 24, 2018. (Yonhap)

Park Won-ju, a senior official in charge of energy policy at the Ministry of Trade, Industry and Energy, speaks during a meeting with Korean solar panel makers in Seoul on Jan. 24, 2018. (Yonhap)

ejkim@yna.co.kr
(END)

HOME TOP
Send Feedback
How can we improve?
Thanks for your feedback!