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RUEHKO/AMEMBASSY TOKYO 7203
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RUCPDC/NOAA WASHINGTON DC
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RHMFIUU/CHJUSMAGK SEOUL KOR

UNCLAS SECTION 01 OF 06 SEOUL 000052 
 
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: ENRG EAGR ECON EIND PREL SENV TBIO TPHY KGHG KHIV
KS 
SUBJECT: SEOUL ESTH UPDATE - DECEMBER 2009 
 
IN THIS ISSUE 
 
- South Korea Signs Nuclear Energy Deal with United Arab Emirates 
- Graduate School for Nuclear Power Studies to Open in Korea 
- Nuclear Energy Clauses Deleted from Draft Basic Law on Low-Carbon 
and Green Growth 
- South Korea to Launch Global Climate Change Institute 
- Ministry of Knowledge Economy Says Carbon Reduction Plan Will Slow 
GDP Growth 
- Korean Scientists Make Breakthrough in Bio-Plastics Production 
- LG to Begin Crystalline Silicon Solar Cell Production in January 
- Korea to Build Nuclear Research Reactor in Jordan 
- Domestic Scientists Develop New Strain of Rice 
- Statistics Highlight Extent of Aging Population and Increased 
Cases of Dementia 
- H1N1 Influenza Alert Level is Lowered as Cases Decline 
- HIV Positive Foreign Workers File Discrimination Petition 
- Profile: Korea Institute of Energy Research 
 
---------------------- 
Energy and Environment 
---------------------- 
 
South Korea Signs Nuclear Energy Deal 
with United Arab Emirates 
------------------------------------- 
 
¶1.  President Lee witnessed the signing of a contract December 27 
that will award USD 20 billion to a South Korean consortium led by 
the Korea Electric Power Corporation (KEPCO) to supply four 1400 
megawatt light water nuclear reactors and design and build four 
nuclear power plants in the United Arab Emirates (UAE).  The 
consortium is expected to earn another USD 20 billion through joint 
operation of the plants over the next 60 years.  Work on the plants 
is expected to begin in 2012 with the first plant completed by 2017 
and the other three plants completed by 2020.  The Emirates Nuclear 
Energy Corporation chose Korea's bid over a competing bid by a 
French consortium led by Areva SA and a joint U.S./Japanese proposal 
by GE/Hitachi.  A Ministry of Knowledge Economy representative told 
the press that construction and operation of the four reactors and 
plants is expected to create more than 100,000 Korean jobs over the 
next several years. 
 
¶2.  The UAE deal is an important early success as Korea attempts to 
capitalize on the global renaissance in nuclear power plant 
construction.  In February, Doosan Heavy Industries exported a 500 
megawatt pressurized light water reactor to the China National 
Nuclear Corp.  In August, KEPCO and Nuclear Power of India Ltd. 
signed an agreement to study the feasibility of licensing Korean 
reactors and constructing Korean plants in India.  Korea is 
competing with France, Canada and Russia for construction of a 1000 
megawatt nuclear power plant near the city of Aqaba.  KEPCO is also 
discussing the possible construction of two nuclear power plants in 
Turkey and is planning to bid on a contract for a nuclear plant in 
the Ukraine.  Korea's success in winning the UAE bid could signify 
the Korean nuclear industry's competitiveness in price, construction 
experience, and safety. 
 
Graduate School for Nuclear Power 
Studies to Open in Korea 
--------------------------------- 
 
SEOUL 00000052  002 OF 006 
 
 
 
¶3.  On December 29, Korea's Ministry of Knowledge Economy approved a 
plan by KEPCO to establish the world's first international graduate 
school for nuclear power studies.  The International Nuclear 
Graduate School (INGS), scheduled to open March 2012, will be 
established next to the Kori Nuclear Power Plant Complex, about 60 
km northeast of Busan, which will allow students easy access to 
on-the-job-training and practical learning experiences.  Courses 
will include nuclear energy planning, design, operations, 
management, and maintenance.  The two-year graduate school will 
accept 100 students in each graduating class - half of them will be 
non-Korean students selected from countries that are potential 
importers of Korean nuclear reactors and power plants.  The UAE has 
already stated it will send ten of its nuclear plant workers to the 
school.  Much of the 58 billion won (USD 48 million) funding for the 
school will come from KEPCO and its four affiliates - Korea Hydro & 
Nuclear Power (KHNP), Korea Power Engineering Company, Korea Plant 
Services & Engineering, and Korea Nuclear Fuel. 
 
¶4.  The school is one element of Korea's systematic and long-term 
effort to become a leading exporter of nuclear energy reactors and 
of construction for nuclear power plants.  Yun Jung-hyun, team 
leader of the KEPCO-INGS task force, told the Korea Herald on 
December 30, "Raising talents from potential export countries such 
as Turkey, Jordan, Vietnam and Indonesia will produce valuable 
networks we need in the future." 
 
Nuclear Energy Clauses Deleted from Draft Bill of 
Korea's Basic Law on Low-Carbon and Green Growth 
--------------------------------------------- ---- 
 
¶5.  On December 7, the National Assembly's Climate Change Special 
Committee approved the "Basic Law on Low-Carbon Green Growth," after 
deleting clauses that would set in law plans to expand the number of 
Korea's nuclear power plants from the current 20 to 37 by 2030.  The 
bill now can be presented to the National Assembly's plenary session 
for final voting and approval.  In deleting the provisions 
pertaining to nuclear energy, legislators reportedly acted in 
cognizance of environmental and safety concerns by civic groups. 
Notwithstanding the lawmakers' actions, the Lee Myung-bak 
Administration still plans to carry out its nuclear energy expansion 
program; however, those plans will now lack the force of law. 
Members of the domestic nuclear energy community worry that without 
enacting legislation, it will now be more difficult to secure future 
nuclear power plant sites. 
 
¶6.  The Lee administration submitted the draft legislation to the 
National Assembly in late February.  Key points of the bill were the 
expansion of the nuclear energy industry through construction of 
additional reactors and power plants, the introduction of a 
market-based cap-and-trade system on domestic carbon emissions, 
increased R&D into renewable energy technologies, and a series of 
eco-friendly infrastructure projects (the Green New Deal) designed 
to create nearly one million jobs. 
 
South Korea to Launch Global Climate Change Institute 
--------------------------------------------- -------- 
 
¶7.  In his December 16 keynote address at the Copenhagen climate 
conference, President Lee Myung-bak announced plans to launch an 
international institute early next year to spearhead global efforts 
 
SEOUL 00000052  003 OF 006 
 
 
to fight climate change and also help provide developing countries 
with mitigation plans and necessary technology.  The institute, 
tentatively named the Global Green Growth Institute (GGGI), "can act 
as a global think tank and bridge between advanced and developing 
countries," the South Korean leader said.  The Office of the 
President announced on December 17 that the institute will be 
established in South Korea in the first half of next year and at 
least five branch offices will be opened in advanced and developing 
countries before the end of 2012 jointly funded by the host 
countries.  The institute will bring together the world's top 
scientists and climate experts to come up with what Lee called 
"workable solutions" to environmental problems. 
 
Ministry of Knowledge Economy Says Carbon 
Emissions Reduction Plan Will Slow GDP Growth 
--------------------------------------------- 
 
¶8.  South Korea's 2020 reduction target of carbon emissions by four 
percent below 2005 levels would cause the country's per-capita GDP 
to fall if implemented, a government report said on December 10. 
The joint report by the Ministry of Knowledge Economy (MKE), Seoul 
National University and the Korea Productivity Center forecast the 
national economy could grow an average 3.65 percent annually from 
2005 through 2020.  The report noted, however, that if the country 
moves to mitigate greenhouse gas emissions in accordance with the 
plan outlined by the Presidential Committee on Green Growth, the GDP 
growth would be reduced 0.4 percentage points to 3.25 percent in the 
cited period. 
 
-------------------- 
Science & Technology 
-------------------- 
 
Korean Scientists Make Breakthrough 
in Bio-Plastics Production 
----------------------------------- 
 
¶9.  A team of Korean scientists from LG Chem and the Korea Advanced 
Institute of Science and Technology (KAIST) have developed a more 
efficient and cost-effective method to produce bio-plastics.  The 
research focused on Polylactic Acid, a bio-based alternative to 
petroleum-based plastics such as the polyethylene and polystyrene 
used in every-day household items and fabrics such as grocery bags, 
styrofoam cups, and polyester clothing.  Polylactic Acid is 
bio-degradable and lower in toxicity that fossil-fuel based 
plastics.  Bio-plastics currently comprise only about 0.2 percent of 
global plastics use because the cost of production has been more 
expensive than producing plastics from fossil-fuel based chemicals. 
Until now, Polylactic Acid has been produced in a two-step 
fermentation and chemical process.  The Korean team used a 
genetically engineered strain of the common bacterium E. coli to 
develop an efficient one-step production process.  The new process 
is 40 percent less costly than the two-step process, which could 
make bio-plastics cost competitive with petroleum-based plastics at 
about USD 50 per barrel of oil. 
 
LG to Begin Crystalline Silicon 
Solar Cell Production in January 
-------------------------------- 
 
¶10.  LG Electronics announced December 22 that it will start 
 
SEOUL 00000052  004 OF 006 
 
 
manufacturing crystalline silicon solar cells in January. The 
company has invested 220 billion won (USD 187 million) to complete 
two solar cell production lines, each capable of producing more than 
half a million 1.0 by 1.6 meter solar panels containing cells with 
120 megawatt capacities - enough solar cells to produce electricity 
for approximately 40,000 families for one year.  While thin-film 
cells are becoming more popular due to their flexibility, 
crystalline cells continue to be more efficient in light-to-energy 
conversion.  LG expects crystalline silicon solar cells to comprise 
about 80 percent of the global solar cell market in coming years. 
 
Korea to Build Nuclear Research Reactor in Jordan 
--------------------------------------------- ---- 
 
¶11.  A Korean partnership consisting of the state-run Korea Atomic 
Energy Research Institute (KAERI) and Daewoo Engineering and 
Construction has been selected after an international bidding round 
as the preferred group to build a 5-megawatt research reactor inside 
the Jordan University for Science and Technology by 2014, the 
Ministry of Education, Science and Technology said on December 4. 
KAERI has been operating its 30-megawatt research reactor "HANARO," 
or High-flux Advanced Neutron Application Reactor, since 1995 and 
has been seeking export markets in the past several years.  He 
announcement took place just three weeks before Korea signed a deal 
with the United Arab Emirates to construct and operate four 
full-scale 1400 megawatt light water nuclear power plants in the 
UAE. 
 
Domestic Scientists Develop New Species of Rice 
--------------------------------------------- -- 
 
¶12.  Yonhap news reported on December 9 that a team led by Ryu 
So-noh, an agricultural science professor at Korea National Open 
University has developed a new strain of rice that has a high 
concentration of cyaniding 3-glucoside (C3G), which is gaining 
recognition as a beneficial food supplement.  The chemical has been 
shown to reduce atopic skin symptoms and help prevent diabetes.  The 
grain also has 1.2 times normal rice's levels of anthocyanin, a 
flavonoid pigment with powerful anti-oxidant qualities.  The 
research began in 2006 in cooperation with the state-run Rural 
Development Administration. 
 
------ 
Health 
------ 
 
Statistics Highlight Scale of Aging Population and 
Increased Cases of Dementia 
--------------------------------------------- ----- 
 
¶13.  According the latest Korea Statistics Almanac recently 
published by Statistics Korea (formerly the National Statistical 
Office), children under 14 made up more than 40 percent of the 
Korean population in 1955, but that number has declined to 16.8 
percent as of the year 2009, an indication of the nation's low 
birthrate.  In 1955, people aged over 65 accounted for only 3.3 
percent of the total population, but now senior citizens constitute 
10.7 percent of the population, highlighting the scale of Korea's 
aging population.  In a separate report, the Korea Institute for 
Health and Social Affairs (KIHSA) said that over 45,000 Koreans were 
afflicted with dementia in 2009, and the number is expected to 
 
SEOUL 00000052  005 OF 006 
 
 
increase to 47,000 in 2010.  With continued rapid aging of Korea's 
population, KIHSA predicts that the number of dementia patients will 
surpass one million people by 2030.  Besides the personal emotional 
and health impacts of dementia, KIHSA says the economic costs of 
dementia to society will soar.  Medical spending on dementia 
patients jumped six-fold in the past 5 years to 303 billion won (USD 
264 million), and that figure will rise along with the total number 
of dementia cases. 
 
H1N1 Influenza Alert Level Is Lowered as Cases Decline 
--------------------------------------------- --------- 
 
¶14.  On December 10, the Korea Centers of Disease Control and 
Prevention (KCDC) lowered its H1N1 flu alert from "red" to "orange" 
as the pace of H1N1 infections has slowed in recent weeks.  The 
country had maintained a "red" alert status since early November, 
but the infection rate and number of fatalities from the epidemic 
have been waning since peaking at the beginning of November.  KCDC 
said that the ad hoc Central Disaster Relief and Safety Control 
Headquarters has also been disbanded and its emergency mission has 
been turned over to KCDC effective December 11.  The latest KCDC 
data show that H1N1-related deaths in South Korea amounted 148 as of 
December 12.   Of the 148 fatalities, 132 were classified as high 
risks patients (elderly or with pre-existing medical conditions). 
The influenza-like illness (ILI) index per 1,000 out-patients has 
dropped to 18.5 during the second week of December, down 59 percent 
from its peak during the first week of November and down 17.5 
percent from the first week in December. 
 
HIV Positive Foreign Workers File Petition 
for Discriminatory Measures 
------------------------------------------ 
 
¶15.  According to a local news report of December 2, a coalition of 
human rights groups and a foreign workers' association (the 
Migrants' Trade Union) in Korea filed a petition with the National 
Human Rights Commission, coinciding with World AIDS Day of December 
¶1.  The petition claims South Korea infringes on the human rights of 
foreign migrants by conducting tests for HIV on them during routine 
health checks without their knowledge or consent.  According to 
South Korea's AIDS prevention law, a person's consent is required 
before testing for HIV.  The petition also says current immigration 
controls discriminate against foreigners with AIDS.  "Foreigners who 
have received work permits are deported from the country if they 
test positive for HIV," the petition stated, noting that over 600 
foreign workers have been forced to leave Korea since the late 
1980s.  UN Secretary General Ban Ki-moon earlier called on South 
Korea's health minister to remove the country's immigration controls 
on foreigners with HIV, pointing out that it is one of only eleven 
countries in the world to impose such restrictions. 
 
------- 
Profile 
------- 
 
Korea Institute of Energy Research 
---------------------------------- 
 
¶16.  The Korea Institute of Energy Research (KIER), located in 
Daejeon, central Korea, was founded in 1977 by the government and is 
chartered to perform basic and applied research in various energy 
 
SEOUL 00000052  006 OF 006 
 
 
technologies focusing on the nation's policy goals of "low carbon 
and green growth."  Its R&D areas range from renewable energy 
technologies including solar, wind power, fuel cells, and hydrogen 
energy to carbon capture and storage technology, clean use of fossil 
fuels, energy efficiency for industry, transportation and buildings, 
and energy materials development.  In addition, KIER advises the 
government on energy-related policies, such as how to meet the 
challenges of climate change and how to cope with the versatility of 
oil prices. 
 
¶17.  Currently KIER has 355 full-time employees, of which 18 
researchers hold M.S. or Ph.D. degrees from a U.S. university. KIER 
has maintained a close relationship with the National Energy 
Technology Laboratory of the U.S. Department of Energy since both 
agencies signed an MOU on collaboration in 2007.  KIER also has a 
working relationship with Georgia Institute of Technology and the 
U.S. National Renewable Energy Laboratory. 
 
TOKOLA