5-충북-북미IR발표(최종)

ASIA’s SOLAR VALLEY in CHUNGBUK November 15, 2011

I

Contents

World PV Industry

II PV Industry of KOREA II III PV Industry of CHUNGBUK IV Incentives for Foreign Investors

I. World PV Industry • PV Market Share of Major Countries

EUR

US

Others

CHN

Source: Mirae Asset Securities (2011)

JPN

CHN/US Rising

I. World PV Industry • Global Cell/Module Manufacturers

Source: Solar & Energy (2011)

충북기획단의 요즘 고민은?

II. PV Industry of KOREA 2.1 2.2 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 Â

<Domestic2004 Market> 2005 Installation

6.8M W

2.6MW

<Source: KEMCO>

<NRE Output> 2005

2006

2007

2008

2030F

22MW 48MW 278MW 3.5GW

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

3,674,015 3,468,233 3,632,089 3,070,457

2,821,530

Hydro-Electri c Bio Gas

LFG

-

-

-

3,363

6,814

129,595

154,521

307,299

412,996

448,728

3,899,369 4,394,830 4,227,476

4,617,886

Total

<Source: KEMCO>, Unit:3,950,000 MWh

II. PV Industry of Korea • Solar Industry Growth Index 2007 Sales (million$)

Export (million$)

Employment Source

2008

2009

2010

2011

440

1,548

2,376

5,899

10,423

202

1,029

1,521

4,071

6,669

1,283

3,620

5,587

9,264

11,807

MKE Solar&Energy

MKE Solar & Energy

Korea MKE Renewable Solar&Energ Energy y Association

II. PV Industry of Korea â&#x20AC;˘â&#x20AC;&#x2C6; Recent Foreign Investment Investor

Invested

Saint-Gobai Hyungdai Avancis n (Chungbuk) (France) SunEdison (USA)

Field

Details

Cell/Module

USD353million by JV Avanci s for thin-film solar cell

Busan Port Authorit System Inst 400MW solar power system y allation (Gyeongbuk)

Dow Cornin Korea Dow Corning Material g (Chungbuk) (USA) MEMC (USA)

Samsung Fine Che Polysilicon m (Ulsan)

USD10million to build Solar Power Tech Center USD20million to produce 10 ,000tons polysilicon

2.2 PV Industry Policy of Korea National Strategy of “Green Growth” Top 7 Green Leaders by 2020 4 Visions / 10 Tasks Low energy consumption/low carb on Energy source unit : 0.347  0.185

Improve energy efficiency Streamline energy market & price system Cope with climate changes

Green Energy for Growth Drive Energy tech level: 60%  highest in the world

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

Expand new renewable energy Improve the safety of nuclear power

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

Develop tech & infra for green energy

Develop overseas resources

Expand overseas markets

Stabilize energy supply Enhance energy welfare

충북기획단의 요즘 고민은?

III. PV Industry of CHUNGBUK 3.1 3.2 3.3 3.5

3.1 CHUNGBUK

(Delaware-6,452㎢)

3.1 CHUNGBUK

Sejon g

Cheongju International Airport

Gateway to Sejong Admin Capita l Hub airport to China and Japan

Who invested in CHUNGBUK?

3.2 PV Infrastructure of CHUNGBUK â&#x20AC;&#x153;Solar Industry Special Beltâ&#x20AC;? in April 201 1 Semiconductor

60 companies including Hynix, Dongbu Hitec, MagnaChip, Semitech, Nepes, Terrasem Testing center for semiconductor equipment/parts Electronic Information Component Center

Supporting Agency

Korea Basic Science Institute Environment-friendly Energy Parts & Materials Center Next-Generation Battery H/R Education Center

Manpower

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

60% of Domestic Cell/Module Production Dayou DMC

Investment: 120 mil USD

Cell/Module

Investment:1200 mil USD

Haesung Solar

(1 billion USD total) Polysilicon Cell/Module

Cell/Module

오창

Module Cheongju Airport

Investment: 200 mil USD Polysilicon Cell

KISCO

PV Inverter

Investment: 450 mil USD

Sehwa Energy PV System

Techwin PV System

Thin film Cell

A‐One Tech

Investment: 316 mil USD

Cell

Hyundai Avancis, JV of Saint‐Gobain and Hyunda HI in Ochang IT Complex → Totally 2 billion USD invest

ment with its 2nd Production Line → Largest investment in Korea in PV parts

Businesses by Value Chain Basic Materials Poly‐silic on Profit Ra tio

35% • Dongyang Chemicals

Com

• KCC

panie s

Feat ures

• High invest‐ ment • Technical barriers

Unit/Module

Ingot/ Wafer

10%

Cell

15%

Module

10%

System/Service Production Sy stem

Facility

4%

5%

• Dass Tech

• Tech One

• Siltron

• Hyundai Heavy Ind • Hyundai Heavy

• Woongjin Engy

• KISCO

• KD Solar

• Big Tech

• KD Solar

• Smart Ace

• Shinsung ENG

• Haesung Solar

• Paru

• KEPE

• SKC

• A‐One Tech

• LS Industrial

• Willings

• Symphony Engy

• KPE

• Moin Energy

• Hanyang Elec

• Solar Tech

• Mili Solarnet

• Symphony Engy

• Eagon

• Differentiated technology (high efficiency/ low price) • p‐Si stable supply

• Non‐conformity ratio • Product uniformity

• Inverters

• A/S

• Cables

capability

• Securing value chain • Minimizing loss

※ Companies in blue: Head offices in Chungbuk

Specializing in cell and module fields (60% of national production)

3.2 PV Infrastructure of CHUNGBUK

3.3 Asia Solar Valley Project

Designated on April 2011 by MK E Cheongju·Cheongwon(System) Jungpyong·Jincheon(Cell/Module) Eumsong·Chungju(Silicon/Wafer)

Districts Area

12,497 thousand㎡

Period

2011 ~ 2015 (5years)

1.5 billion USD

Budget

21

Asia Solar Valley Project

• Location

: Jungpyong, Chungbuk

• Scale

: Land 33,000㎡, Building 9,600㎡

• Period

: 2011~2015 (5years)

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

• 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 22

Asia Solar Valley Project 3. Training Network for Manpower Supply Network

Local

Governments, Chungbuk TP, Colleges

Period

2011

~ 2015 (5years)

Budget

20

million USD

Support for R&D Workforce

23

Asia Solar Valley Project 4. R&D Support for High Efficiency and Low Cost `` Network

Chungbuk,

Period

2011

Budget

20

Chungbuk TP, Colleges, Business

~ 2015 (5years)

million USD

Technology for Low Price DSSC

24

Asia Solar Valley Project 5. Green Village , the Experiential Space Period

2012 ~ 2015 (4years)

Scale

21 Villages of 630 Households

Budget

30 million USD

25

Asia Solar Valley Project 6. International Solar Expo

Theme

- Chungbuk, Land of Life and Sun -

Period

October(36 days), 2014

Budget

30 million USD

26

Asia Solar Valley in CHUNGB UK Visions and Goals The hub for PV parts and materials Distribution

Clustering  Attract related businesses  Free Land for investors

 Implement pilot projects  Various PV Promotion Projects

Manpower

Infrastructure

 Support labor force demand  Support R&D demand  Re‐training on‐site workers

 Solar‐cell Technology Center  PV Industry Cluster

R&D  Develop next generation tec hnology  Expand central/local budget

Networking  Academia / Industry Cooperation  PV Energy Promotion Committee

충북기획단의 요즘 고민은?

IV. Incentives for Foreign Investment 4.1 4.2 4.3 4.4

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

National Tax

Local Tax

Corporate Tax / Income Tax

100% 5yrs 50% 2yrs

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

100% 3yrs

Acquisition / Registration / Property Tax

100% 7yrs 50% 3yrs

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

Subsidies

Usage

Hiring

Training

Qualification

Amount

More than 20 new local employees

500 USD

Newly hired local employees

500 USD

â&#x20AC;ť 20 at minimum

Period 6months

(person/month)

(person/month)

Each subsidy limited to USD1 million per company

6months

Cash Grants Investment Area

Qualification

(over 30% of FDI)

Industry supporting service

USD 10 million in new factory construction

Parts and materials

USD 10 million in new factory construction

R&D

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

High-tech business

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

Project Manager

Thorough assistance from site selection Administrative procedures Consult on FDI incentives Meeting arrangement with authorities

to Marketing and Commercialization

Chungbuk goes together with you!

Contact: Jungmee Sohn Investment Promotion & Business Support Chungcheongbuk-do, KOREA 82-43-220-3233; jmsohn@korea.kr