According to the Ministry of Trade, Industry, and Energy (MOTIE), the South Korean government is partnering with private businesses to invest KRW 2.6 trillion ($2.33 billion) over the next five years to accelerate the development of the country’s hydrogen fuel cell eco-vehicles.
Approximately KRW 125 billion ($112 million) is targeted for research and development for the fuel cell stacks, which are essential components that create electricity by combining oxygen and hydrogen.
In 2018, the plan incorporates the investment of KRW 150 billion ($135 million) in establishing a special corporation for hydrogen filling stations, with the goal of reducing the cost of filling station construction.
In 2019, the plan envisions spending KRW 420 billion ($377 million) to produce hydrogen buses, hydrogen storage vessels for buses, and the mass production of a domestic device to produce hydrogen.
From 2020 to 2022, the plan estimates the expenditure of KRW 2 trillion ($1.8 billion) on the expansion of plants to produce hydrogen, fuel cell stacks, and the mass production of packaged hydrogen filling stations. According to the ministry, the plan is to have 1,000 fuel cell buses operating by 2022. Nationwide the goal is to install 310 hydrogen stations and supply 16,000 fuel cell vehicles nationwide by 2022.
According to McKinsey & Co., the fuel cell industry will generate $2.5 trillion in added value annually, creating over 30 million jobs worldwide by 2050. South Korea seeks to develop the infrastructure to support domestic sales. Japan has 101 charging stations in comparison with 16 in South Korea. Japan plans to have 320 by 2025.
USD = KRW 1,116.27 (Jun 25)