ASIA’s SOLAR VALLEY in CHUNGBUK

November 15, 2011

II

I World PV Industry

PV Industry of CHUNGBUK

IV Incentives for Foreign Investors

Contents PV Industry of KOREA

III

II

III

•  PV Market Share of Major Countries

I. World PV Industry

Source: Mirae Asset Securities (2011)

EUR US Others CHN JPN CHN/USRising

• Global Cell/Module Manufacturers

I. World PV Industry

Source: Solar & Energy (2011)

충북기획단의 요즘 고민은?

II. PV Industry of KOREA

2.2

2.1

2.3

- Population : 50 million (2011) - GDP Ranking : 15th (2010 by IMF) - Global Trade Ranking : 8th (US$ 728 BLN in 2007) - Expected GDP Growth Rate: 4~5% - OECD member since 1996 Source : Korea Statistical Information Service

World Ranking

- TFT-LCD· · · · · · · · · · · · · · · · · - Memory semiconductors · · · · · · · - Shipbuilding · · · · · · · · · · · · · · · - Info and Comm Technology · · · · · - Steel production · · · · · · · · · · · · - Automobile production · · · · · · · · - Comprehensive national power · · ·

1st 1st 1st 1st 5th 6th 9th

2.2 PV Industry Policy of Korea

 

<Domestic Market> 2004 2005 2006 2007 2008 2030F

Installation 2.6MW 6.8MW 22MW 48MW 278MW 3.5GW

<Source: KEMCO>

<NRE Output>

<Source: KEMCO>, Unit: MWh

2005 2006 2007 2008 2009

Solar 14,399 31,022 71,279 284,315 566,191

Wind 129,888 238,911 375,641 436,034 685,353

Hydro-Electric

3,674,015 3,468,233 3,632,089 3,070,457 2,821,530

Bio Gas - - - 3,363 6,814

LFG 129,595 154,521 307,299 412,996 448,728

Total 3,950,000 3,899,369 4,394,830 4,227,476 4,617,886

II. PV Industry of Korea

•  Solar Industry Growth Index 2007 2008 2009 2010 2011

Sales (million$) 440 1,548 2,376 5,899 10,423

Export (million$) 202 1,029 1,521 4,071 6,669

Employment 1,283 3,620 5,587 9,264 11,807

Source MKE Solar&Energy

MKE Solar & Energy

Korea Renewable Energy Association

MKE Solar&Energ

y

Investor Invested Field Details Saint-Gobain (France)

Hyungdai Avancis (Chungbuk) Cell/Module USD353million by JV Avanci

s for thin-film solar cell

SunEdison (USA)

Busan Port Authority (Gyeongbuk)

System Installation 400MW solar power system

Dow Corning (USA)

Korea Dow Corning (Chungbuk) Material USD10million to build Solar

Power Tech Center

MEMC (USA)

Samsung Fine Chem (Ulsan)

Polysilicon USD20million to produce 10,000tons polysilicon

II. PV Industry of Korea

•  Recent Foreign Investment

2.2 PV Industry Policy of Korea

NationalStrategyof“GreenGrowth”Top7GreenLeadersby2020

Improveenergyefficiency Streamlineenergymarket&pricesystem

Copewithclimatechanges

Energy source unit : 0.347 0.185

Expandnewrenewableenergy Improvethesafetyofnuclearpower

New/renewable energy: 2.4% 11% Nuclear power facility : 26% 40.6%

Developtech&infraforgreenenergy Expandoverseasmarkets

Energy tech level: 60% highest in the world

Developoverseasresources Stabilizeenergysupply

Self-sufficiency: 3.2% 40% Energy poor group: 7.8% 0%

Enhanceenergywelfare

4 Visions / 10 Tasks

New/Renewable Energy Low energy consumption/low carbon

Green Energy for Growth Drive Self-reliance of Energy

충북기획단의 요즘 고민은?

III. PV Industry of CHUNGBUK

3.3

3.2

3.5

3.1

3.1 CHUNGBUK

(Delaware-6,452㎢)

3.1 CHUNGBUK

Sejong

Gateway to Sejong Admin Capital

Hub airport to China and Japan

Cheongju International Airport

Who invested in CHUNGBUK?

3.2 PV Infrastructure of CHUNGBUK

Semiconductor

Supporting Agency

Manpower

60 companies including Hynix, Dongbu Hitec,

MagnaChip, Semitech, Nepes, Terrasem

Testing center for semiconductor equipment/parts

Electronic Information Component Center

Korea Basic Science Institute

Environment-friendly Energy Parts & Materials Center

Next-Generation Battery H/R Education Center

Semiconductor R&D H/R Education - Chungbuk Univ, Chungju Univ, Cheongju Univ Semiconductor Equipment Operation Education - Chungcheong Univ, Juseong Univ Chungbuk Provincial College

“Solar Industry Special Belt” in April 2011

HyundaiAvancis,JVofSaint‐GobainandHyundaHIinOchangITComplex→Totally2billionUSDinvest

mentwithits2ndProductionLine→ LargestinvestmentinKoreainPVparts

오창

HaesungSolar

DayouDMC  Investment:120milUSD   Cell/Module

Techwin A‐OneTech  Investment:316milUSD   Cell

KISCO  Investment:450milUSD   ThinfilmCell

 Investment:200milUSD   PolysiliconCell

  Cell/Module

Module

  PVSystem

  PVSystem

 Investment:1200milUSD(1billionUSDtotal)   PolysiliconCell/Module

  PVInverter

SehwaEnergy

Cheongju Airport

60% of Domestic Cell/Module Production

Businesses by Value Chain

※Companiesinblue:HeadofficesinChungbuk

• DongyangChemicals

• KCC

• Siltron • WoongjinEngy

• SmartAce

• SKC

• HyundaiHeavyInd• KISCO

• ShinsungENG

• A‐OneTech

• KPE• MiliSolarnet

• HyundaiHeavy• KDSolar• HaesungSolar• LSIndustrial• MoinEnergy

• SymphonyEngy

• TechOne

• KDSolar• KEPE• SymphonyEngy

• SolarTech

Com

panie

s

• Highinvest‐ment• Technicalbarriers

• Securingvaluechain • Minimizingloss

• Differentiatedtechnology (highefficiency/lowprice)• p‐Sistablesupply

• Non‐conformityratio• Productuniformity

•  A/S capabilityFeat

ures

• DassTech • BigTech• Paru• Willings

• HanyangElec• Eagon

• Inverters• Cables

35% 10% 15% 10% 4% 5%ProfitRatio

BasicMaterials System/ServiceUnit/Module

Poly‐silicon

Ingot/Wafer Cell Module

ProductionSystem

Facility

Specializingincellandmodulefields(60%ofnationalproduction)

3.2 PV Infrastructure of CHUNGBUK

Districts

  Cheongju·Cheongwon(System)   Jungpyong·Jincheon(Cell/Module)   Eumsong·Chungju(Silicon/Wafer)

  12,497 thousand㎡

  2011 ~ 2015 (5years)

  1.5 billion USD

Area

Period

Budget

21

3.3 Asia Solar Valley Project

Designated on April 2011 by MKE

22

Asia Solar Valley Project

•  R&D and Equipment support for next generation solar cell technology development

•  Technical support for certification & test for solar cell & module

•  Manpower training & Academia-Industrial Cooperation

•  Location : Jungpyong, Chungbuk

•  Scale : Land 33,000㎡, Building 9,600㎡

•  Period : 2011~2015 (5years)

•  Investment : 42 Million USD (Central Gov. 25M$ / Local Gov. 10M$)

Network   Local Governments, Chungbuk TP, Colleges

  2011 ~ 2015 (5years)

  20 million USD

Period

Budget

23

Asia Solar Valley Project

3. Training Network for Manpower Supply

Support for R&D Workforce

Network   Chungbuk, Chungbuk TP, Colleges, Business

  2011 ~ 2015 (5years)

  20 million USD

Period

Budget

24

Asia Solar Valley Project

4. R&D Support for High Efficiency and Low Cost``

Technology for Low Price DSSC

Period   2012 ~ 2015 (4years)

  21 Villages of 630 Households

  30 million USD

Scale

Budget

25

Asia Solar Valley Project

5. Green Village , the Experiential Space

Theme   - Chungbuk, Land of Life and Sun -

  October(36 days), 2014

  30 million USD

Period

Budget

26

Asia Solar Valley Project

6. International Solar Expo

Asia Solar Valley in CHUNGBUK

Manpower

Clustering

R&D

Distribution

Infrastructure

 Implementpilotprojects  VariousPVPromotionProjects

 Solar‐cellTechnologyCenter  PVIndustryCluster

 Developnextgenerationtechnology

 Expandcentral/localbudget

 Attractrelatedbusinesses  FreeLandforinvestors

 Supportlaborforcedemand  SupportR&Ddemand  Re‐trainingon‐siteworkers

ThehubforPVpartsandmaterials

Networking Academia/IndustryCooperation  PVEnergyPromotionCommittee

VisionsandGoals

충북기획단의 요즘 고민은?

IV. Incentives for Foreign Investment

4.3

4.2

4.4

4.1

Eligibility : over USD 30 million investment or USD 2 million in R&D

Additional benefits available for R&D: refer to the R&D section

National Tax

Local Tax

Corporate Tax / Income Tax

Customs Tariff, V.A.T, Special Excise Tax

Acquisition / Registration / Property Tax

100% 5yrs 50% 2yrs

100% 3yrs

100% 7yrs 50% 3yrs

Tax Benefits

Hiring

Training

Usage Qualification Amount Period

More than 20 new local employees

Newly hired local employees ※ 20 at minimum

500 USD (person/month)

500 USD (person/month)

6months

6months

Each subsidy limited to USD1 million per company

Subsidies

Eligibility : Foreign direct investment ratio over 30% Amount : more than 5% of FDI (negotiable) Usages : hiring and training, land purchase · lease, construction costs, equipment purchasing/installation, capital goods

Industry supporting service High-tech business

Qualification (over 30% of FDI)

USD 10 million in new factory construction

Investment Area

Parts and materials

R & D

USD 10 million in new factory construction

Over 10 full-time researchers with master's degree or bachelor's with 3 year experience

Cash Grants

Thorough assistance from site selection

Consult on FDI incentives

Meeting arrangement with authorities

to Marketing and Commercialization

Administrative procedures

Project Manager

Chungbuk goes together with you!

Contact: Jungmee Sohn Investment Promotion & Business Support

Chungcheongbuk-do, KOREA 82-43-220-3233; jmsohn@korea.kr