[THE INVESTOR] Seeking a new growth engine, the trade minister for Asia’s fourth-largest economy called on Aug. 17 for the country’s automobile industry to invest big in renewable energy-powered vehicles

“The paradigm of the global car industry is changing rapidly as China has emerged as a leading country in the electric car sector,” Trade Minister Joo Hyung-hwan said in a breakfast meeting in Seoul with the heads of five carmakers, including Hyundai Motor and Kia Motors.

“The government is considering expanding tax credits on research and development investment for futuristic vehicles.”

The South Korean government earlier unveiled a long-term scheme to transform the country’s energy sector to be more eco-friendly and foster the electric and hydrogen car sectors as the country’s key export items.

Under the program, the electric vehicle industry would be at the top, with the country aiming to export an annual 200,000 eco-friendly cars by 2020, with a market share of 10 percent.

In order to achieve the goal, the government would help battery companies conduct research and development projects and set up nationwide electric car charging stations, while electric car buyers would receive more financial incentives in state subsidies.

Moreover, public super-charging fees at existing facilities would be cut by half to 60,000 won ($54.40) to fuel demand for electric automobiles starting next month.

(theinvestor@heraldcorp.com)