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RUEHKO/AMEMBASSY TOKYO 5743
RUEHBJ/AMEMBASSY BEIJING 5652
RUEHBK/AMEMBASSY BANGKOK 7930
RUEHGP/AMEMBASSY SINGAPORE 6417
RUEHHK/AMCONSUL HONG KONG 3840
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RUEHIN/AIT TAIPEI 3201
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RUEHRC/DEPT OF AGRICULTURE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAUSA/DEPT OF HHS WASHDC
RHEHAAA/WHITE HOUSE WASHDC
RUCPDC/NOAA WASHINGTON DC
RUEKJCS/SECDEF WASHINGTON DC
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RHMFISS/COMUSKOREA SCJS SEOUL KOR
RHMFIUU/CHJUSMAGK SEOUL KOR

UNCLAS SECTION 01 OF 05 SEOUL 000587 
 
SIPDIS 
 
STATE FOR OES/IHB, OES/SAT, OES/PCI AND OES/EGC 
STATE FOR EAP/K, ISN/NESS AND STAS 
STATE PASS TO EPA FOR INTERNATIONAL PROGRAMS 
WHITE HOUSE FOR OSTP AND CEQ 
DOE FOR INTERNATIONAL, NE, FE, AND EERE 
USDOC FOR 4400/MAC/EAP/OPB/ITA/TA 
USDOC FOR NIST 
HHS FOR OGHA 
HHS PASS TO NIH FOR FIC 
STATE PASS TO NSF FOR INTL PROGRAMS 
STATE PASS TO NRC FOR INTL PROGRAMS 
 
E.O. 12958: N/A 
TAGS: SENV ECON ENRG TBIO TPHY TRGY KGHG KS
SUBJECT: SEOUL ESTH UPDATE - MARCH 2009 
 
In This Issue 
------------- 
 
- Draft Bill on "Green Growth" Submitted to National Assembly; 
Debate on Cap- 
  and-Trade Spirited 
- Structure of New Presidential Green Growth Committee Described 
- KIST Research on Microbial Fuel Cells Shows Promise 
- KIA Motors Unveils Hybrid Car 
- Ministry of Knowledge Economy Unveils Blueprint to Boost Robotics 
 
  Industry 
- South Korea's Corporate R&D Expected to Increase 2 Percent this 
Year 
- Doosan Heavy Industries Exports Nuclear Reactor to China; KEPCO to 
 
  Construct Entire Nuclear Plant in Jordan 
- Korean Memory Chipmakers Widen Their Lead over Rivals 
- U.S.-Korea International Tuberculosis Research Center Launched as 
an 
  Independent Foundation 
- Korea's Fertility Rate Falls to 1.19, Posing Social and Economic 
  Challenges, Opportunities 
- One in Seven Seoul Students Classified as Overweight 
 
----------- 
ENVIRONMENT 
----------- 
 
Draft Bill on "Green Growth" Submitted to National Assembly; Debate 
on Cap-and-Trade Spirited 
-------------- ------------------------------------- 
--------------------- 
 
¶1.  After several rounds of public hearings, the Lee Myung-bak 
administration submitted draft legislation entitled "The Basic Law 
on Low Carbon and Green Growth" to the National Assembly on February 
¶28.  The proposed legislation calls for the introduction of a 
market-based cap-and-trade system on domestic carbon emissions, 
increased R&D into renewable energy technologies, and expanded 
construction and use of domestic nuclear power plants.  The bill 
also contains a four-year 50-trillion won (USD 38 billion) "Green 
New Deal," which comprises a series of eco-friendly infrastructure 
projects designed to create nearly one million jobs.  During the 
public hearings, the proposed introduction of the emissions 
cap-and-trade system became a controversial and divisive topic among 
business representatives, who sought to delay or modify its 
implementation, and academics and environmental NGOs who generally 
favored early and strict implementation. 
 
¶2.  The government hopes the draft legislation will be passed by the 
National Assembly in the upcoming April special sessions.  Officials 
told ESTH that since the Basic Law does not specify the timing or 
spell out the details of how the cap-and-trade scheme would work, 
they expect a spirited debate among stakeholders - with the 
government in the middle, between businesses and environmental 
groups - when it comes time to devise the particulars of the fully 
designed carbon trading system. 
 
Structure of New Presidential Green Growth Committee Described 
------------- --------------------------------- -------------- 
 
 
SEOUL 00000587  002 OF 005 
 
 
¶3.  On February 16, the government combined three existing national 
committees - the Climate Change Committee, the Sustainable 
Development Committee, and the Energy Committee -- to form a new 
Presidential Green Growth Committee (PGGC) that will oversee all 
aspects of the submitted green growth legislation, as well as guide 
the government's approach to global climate change in the 
international arena.  The PGGC, which is expected to convene once a 
month, is composed of more than 50 government officials and civilian 
members and is co-chaired by the Prime Minister and a civilian 
representative.  The PGCC has three subcommittees - the Green Growth 
and Industry Subcommittee, the Climate Change and Energy 
Subcommittee, and the Green Life for Sustainable Development 
Subcommittee.  Each subcommittee is composed of 9 or 10 members, 
nearly all of whom are non-government academics. 
 
¶4.  In addition, the PGGC is guided by an inter-agency task force 
composed of about 50 officials from various government agencies. 
The Task Force itself is composed of six teams: 1) Policy Planning 
and Coordination, 2) Taskforce on International Cooperation, 3) 
Energy Policy, 4) Climate Change Policy, 5) Green Technology, and 6) 
Green Life for Sustainable Development. 
 
 
KIA Motors Unveils Hybrid Car 
----------------------------- 
 
¶5.  On March 24, Kia Motors, Korea's second largest automaker, 
unveiled a hybrid version of its Forte compact car, featuring 
high-end lithium-ion battery technology.  The Forte hybrid operates 
both on liquid petroleum gas in a 1.6 liter gas-powered engine and 
on electricity from a lithium-ion battery.  The Kia statement said 
that the Forte hybrid obtains 17.2 kilometers per liter with 114 
horsepower at its peak.  Experts say that hybrid cars equipped with 
lithium-ion batteries will be significantly cheaper to manufacture 
than the current hybrids using conventional nickel-metal hydride 
batteries. 
 
KIST Research on Microbial Fuel Cells Shows Promise 
---------------------- ---------------------------- 
 
¶6.  In its most recent newsletter, the Korea Institute for Science 
and Technology (KIST) described ongoing research using bacteria to 
treat and to generate electricity from wastewater.  In conventional 
wastewater treatment, wastewater is aerated to supply oxygen to 
microbes to break down organic contaminants.  The growing bacterial 
mass (sludge) is removed by physical means leaving relatively 
cleaner waste.  KIST is developing a microbial fuel cell in which a 
consortium of bacterial species transfers electrons from their 
breakdown of organic wastes to iron anodes connected to oxygenated 
cathodes, producing electricity in the process.  In the experimental 
model, because the bacteria transfer most of their metabolic energy 
into electricity rather than using it for cell division and growth, 
the amount of sludge produced is decreased up to 80 percent - a 
potentially important improvement to the conventional wastewater 
treatment process.  In addition, the electricity generated can be 
captured for use - KIST calculations estimate that applying this 
method to the wastewater from a town of 100,000 people could 
generate enough electricity to meet the consumption of 867 homes. 
The articles notes, however, that commercialization of a wastewater 
microbial fuel cell is still a long way off.  More research is 
needed in both the microbiological and electrochemical aspects of 
this promising technology. 
 
SEOUL 00000587  003 OF 005 
 
 
 
-------------------- 
Science & Technology 
-------------------- 
 
South Korea's Corporate R&D Expected to Increase Two Percent this 
Year 
---------------- ----------------------------- 
----------------------- 
 
¶7.  According to a survey of 700 private companies conducted by the 
Ministry of Education, Science and Technology on February 23, South 
Korean companies' spending on research and development (R&D) is 
likely to rise two percent in 2009 from 2008 despite the current 
economic slump.  Korean private companies are expected to spend a 
total of 27.6 trillion won (USD 18.3 billion) on R&D in 2009, a two 
percent increase from 2008. 
 
Ministry of Knowledge Economy Unveils Blueprint to Boost Robotics 
Industry 
------------- ----------------------------- --------------------- 
 
¶8.  The Ministry of Knowledge Economy (MKE) in a March 5 public 
hearing, unveiled a blueprint to inject one trillion won (USD 676 
million) into robotics research and development over the next five 
years.  The plan also calls for Korean robotics companies to expand 
the functionality of robotics to include recreation, surveillance, 
medical services, fire fighting, and transportation. 
 
¶9.  With increased spending, MKE projects the country's share of the 
global robotics industry could likely rise to 13.3 percent of global 
production by 2013, from 5.7 percent in 2007 and 7.9 percent in 
¶2008.  The goal is to promote Korea to one of the three largest 
global robotics producers by 2013.  South Korea currently ranks 
fifth in the world, according to the International Federation of 
Robotics.  Japan leads the sector, followed by the United States, 
Germany and Italy. 
 
Doosan Heavy Industries Exports Nuclear Reactor to China; KEPCO to 
Construct Entire Nuclear Plant in Jordan 
-------- --------------------------------------- ----------------- 
 
¶10.  Local news reported on February 9 that Doosan Heavy Industries 
and Construction exported a nuclear reactor to China under a 
contract awarded by the China National Nuclear Corporation in August 
¶2005.  The 600-megawatt pressurized light water nuclear reactor is 
to be installed at the Qinsan phase 2 nuclear power station in 
Zhejiang, eastern China.  This is the first Korean-made nuclear 
reactor - the core component of a nuclear power plant - to be 
exported outside the country. 
 
¶11.  Separately, local media reported on March 12 that KEPCO is in 
discussions with the Jordan Atomic Energy Commission about 
constructing a nuclear power plant near Aqaba, a city on Jordan's 
southern coast.  This would mark the first Korean-type nuclear power 
plant to be constructed overseas.  Korea KEPCO CEO Kim Sang-soo, who 
visited Jordan in early March, said, "It is highly likely we will 
have tangible [decision] as early as April or May."  The 
construction project would cost approximately USD 5 billion and 
would be completed in 2017. 
 
Korean Memory Chipmakers Widen Their Lead over Rivals 
 
SEOUL 00000587  004 OF 005 
 
 
------------------------ ---------------------------- 
 
¶12.  Samsung Electronics and Hynix Semiconductor, the world's two 
biggest memory chipmakers by market share, have been widening the 
technology gap with their overseas rivals, according local news 
reports of February 8.  On the same day that Hynix announced it had 
successfully developed the world's first one-gigabit DRAM chip using 
an advanced 44-nanometer technology, Samsung Electronics also 
reported that it had developed a DDR2 DRAM chip and module using 
40-nano technology.  Analysts and industry watchers say technology 
developments by the Korean duo will enable them to raise their share 
of the global memory chip market even further amid industry 
consolidation. 
 
------ 
Health 
------ 
 
U.S.-Korea International Tuberculosis Research Center Launched as an 
Independent Foundation 
-------------- ------------------------------ --------------------- 
 
 
¶13.  U.S. Ambassador Kathleen Stephens and Health Minister Jeon 
Jae-hee launched the 3-year-old joint U.S.-Korea International 
Tuberculosis Research Center (ITRC) as an independent foundation on 
March 2 in a ceremony at the Korea Tuberculosis Association 
headquarters in Seoul.  It had previously been a program under the 
Korean National Tuberculosis Association.  The ITRC is the most 
significant collaborative health project the U.S. undertakes with 
Korea.  It primary mission is the discovery and development of new 
medicines to combat Multi-Drug Resistant Tuberculosis (MDR-TB) and 
Extensively Drug Resistant Tuberculosis (XDR-TB), which have emerged 
in recent years as a serious and growing global health threat. 
 
¶14.  The work of the ITRC takes place at the Masan National 
Tuberculosis Hospital about 40 km west of Busan.  The Center is 
equally funded, USD one million annually each, by the U.S. National 
Institutes of Health (NIH) and the Korean Ministry of Health, 
Welfare and Family Affairs.  Doctors and technologists from the NIH 
visit throughout the year in both a management and technical 
capacity.  Since the research at the ITRC will benefit tuberculosis 
patients around the world, including those in developing countries, 
the ITRC is an example of the U.S.-Korea partnership transcending 
the Peninsula and engaging in issues of global concern. 
Collaboration between the ITRC, NIH, and researchers at Yeshiva 
University in New York has resulted in the first new class of 
compounds that could potentially be approved for the treatment of TB 
in the last 40 years.  An upcoming issue of Science magazine will 
discuss this promising new approach. 
 
Korea's Fertility Rate Falls to 1.19, Posing Social and Economic 
Challenges, Opportunities 
------------- ----------------------------- ------------------- 
 
¶15.  South Korea's fertility rate -- the average number of babies a 
woman is expected to give birth to over her lifetime -- decreased 
slightly to 1.19 in 2008 from 1.25 in 2007, according to a 
preliminary report released by the Ministry of Health, Welfare and 
Family Affairs.  The birth rate also fell.  The number of newborn 
babies was 466,000 in 2008, down 27,000 or 5.5 percent from 493,000 
in 2007. 
 
SEOUL 00000587  005 OF 005 
 
 
 
¶16.  Visiting scholar Paul Hewit of the Center for Strategic and 
International Studies notes that projections indicate Korea will 
have the highest median age in the world by 2050.  While this will 
pose significant social and economic challenges, it also provides an 
opportunity for Korea to be a model as other countries experience an 
ageing of their populations -- particularly since Korea does not 
have a legacy as a traditional social welfare state that skews 
benefits to seniors.  Mr. Hewitt recommends multi-generational, 
family-centered programs to cope with the inevitable problems on the 
horizon.  These include: mid-life education, financial incentives 
for child-bearing families and elder workers, subsidized education, 
day-care, and other child-rearing costs, and a retirement 
account/pension program that allows individuals to contribute more 
to their own retirement to lessen dependency on the government 
system. 
 
One in Seven Seoul Students Classified as Overweight 
------------------------ --------------------------- 
 
¶17.  One out of seven students in Seoul is overweight, due to 
excessive intake of junk food and lack of exercise, the city's 
educational board said on March 5.  A report issued by the Seoul 
Metropolitan Office of Education showed 13.7 percent of students in 
elementary, middle and high schools are overweight and suggested 
these students should receive special dietary treatment. 
 
¶18.  Seoul introduced dietary control measures last year over the 
sale of unhealthy snacks, including soda, instant noodles, and other 
fried foods, at snack bars or through vending machines at schools. 
The Education Ministry has also stepped up efforts to counter the 
rise in teenage obesity.  Starting later this year, school 
cafeterias throughout the country will be required to provide 
detailed nutritional information for all snacks and drinks sold, 
including the amounts of protein, vitamin, fat and carbohydrate 
content of the foods. 
STEPHENS