The photo shows a public hearing held on the proposed NDC plan. (Yonhap)
SEOUL, Nov. 11 (Korea Bizwire) — South Korea’s business community reacted with dismay after the government and ruling party agreed to raise the nation’s 2035 greenhouse gas reduction target beyond previous levels, warning that the move could undermine industrial competitiveness and trigger job losses.
During a high-level meeting on November 9, policymakers endorsed a plan to cut national emissions by 53 to 61 percent from 2018 levels by 2035 — a stricter range than the earlier government proposals of 50 to 60 percent and 53 to 60 percent.
The final plan will be approved by the Presidential Commission on Carbon Neutrality and Green Growth on Monday and is expected to be confirmed at a Cabinet meeting on November 11.
The decision follows recommendations by the Intergovernmental Panel on Climate Change (IPCC) and a recent Constitutional Court ruling urging stronger climate action.
Industry groups, however, warned that the higher targets could prove disastrous, given the lack of renewable energy infrastructure and the high cost of carbon reduction technologies and emission permits.
They argued the added burden would shrink corporate investments, weaken competitiveness, and lead to job losses that ultimately affect ordinary citizens.
The panoramic view of the Seosan Daesan Petrochemical Industrial Complex. (Image courtesy of Seosan city)
Major manufacturing sectors — including semiconductors, automobiles, steel, petrochemicals, and cement — have raised particular concern. The Korea Chamber of Commerce and seven leading industry associations issued a joint statement earlier this month urging the government to reconsider its approach, but their appeals went unanswered.
A semiconductor industry official said, “Companies are already making every effort to reduce emissions, but it’s unrealistic to achieve the cuts the government envisions given the energy sources we rely on. The costs will eventually fall on the public.”
The auto industry warned that the government’s accompanying goal of selling 8.4 to 9.8 million zero-emission vehicles by 2035 — representing 30 to 35 percent of all cars — is unattainable without effectively banning internal combustion engines.
Such a move, industry groups said, would devastate parts suppliers, 95 percent of whom are small or medium-sized firms.
The steel sector said it supports the carbon neutrality drive but stressed the need for a realistic roadmap, citing the long development timeline for hydrogen-reduction steelmaking, which it expects to introduce gradually from 2037.
The petrochemical and cement industries also warned that the steeper targets could accelerate restructuring in sectors already reeling from global oversupply and economic slowdown. Cement manufacturers argued that the government’s reduction goals are currently unfeasible and called for phased targets and stronger technology support.
An industry representative said, “The government’s previous targets were already difficult to achieve. This new goal ignores the realities on the ground and feels like a disaster for companies already struggling with a downturn.”
M. H. Lee (mhlee@koreabizwire.com)
