7th Asia-pacific Eco-business Forum
Kawasaki, Japan, 14-15 February 2011
Korean Green innovations through Ulsan EIP
initiative

Hung-Suck Park, Ph.D., P.E.
Professor, Department of Civil and Environmental Engineering, University of Ulsan
Director, Ulsan Eco-Industrial Park center, Ulsan, South Korea

In this presentation…
 Innovation Vs. Eco-innovation
 Green growth and its relevance to Korea
Strategies and core-policies promoting
green growth in Korea
 Eco-innovation in industrial complexes
 Conclusion

1. Innovation Vs. Eco-innovation

Innovation
 The process that renews something that exists and not theintroduction of something new can be seen as a change in the thought process for doing
something, or the useful application of new inventions or discoveries

 may refer to incremental or radical and revolutionary changes inproducts, processes, or organizations

Source: WikipediaEco-innovation
 New products and processes which provide business value but at
the same time significantly reduces the environmental impacts

 (James, P (1997).“The Sustainability Circle: a new tool for productdevelopment and design”, Journal of Sustainable Product Design) New field of techno-social innovation that focuses less on products’
functions and more on environment and people.
 The promotion of eco-innovation is not only limited to products orprocesses but also is recently being applied in organizational level.

Typology of Eco-innovation

Source: Eco-innovation strategy, OECD

Eco-innovation Vs. Innovation
 Eco-innovation represents innovation that explicitly emphasizes on
the reduction of environmental impacts.
 Eco-innovation extends beyond theconventional organizationalboundaries of the innovating company encompassing the changes
in social norms, cultural values, and institutional structures toleverage more environmental benefits from the innovation .
 often linked with eco-efficiency, eco-design, sustainable design orsustainable innovation.

2. Green growth and its relevance toKorea

Import and export status of South Korea-Area : 9,953,850 ha-Population : 48,749,700-GNI : $ 17,175

Import(323,084)

Export(363,533)

Foods

14,200

Foods

4,078

Fuels

91,669Fuels

23,785Chemical

31,504

Chemical

37,414

Intermediate
product

68,542

Intermediate
product

85,020Machinery

96,881

Machinery

206,334others

22,283others6,898

5(As on Dec’ 2009)(Unit : US$ million)

Green Growth – Korean context
 Grow fast and clean up later - no more acceptable to Korea with heavy
dependence on natural resources that are limited in the country.
 Low carbon Green growth– growth that does not conflict with but complements the environment.
– declared as the new national paradigm for the long-term development (August 15,2008).
– policy emphasizing environmentally sustainable economic and social progress.
 In essence, green growth need to address environmental degradation, climatechange and diminishing natural resources in order to support the export-driven
economic activities of the country.

3. Strategies and core policies promoting
green growth in Korea

Vision and Goals
Vision- Low Carbon, Green Growth –“contribute to the global efforts to combat climate change
and achieve low carbon society thru green growth”

GOA
LS

1.1.Climate
Climateindustry
industryas
asaanew
neweconomic
economicdriving
drivingforce
force
2.2.Improving
Improvingquality
qualityofoflife
lifeandandthe
theenvironment
environment
3.3.Contributing
Contributingtotoglobal
globaleffortseffortstotocombat
combatclimate
climatechangechange⇒ Action plan to materialize the Presidential Vision for “Low Carbon Green Growth”

Action plans“Low Carbon Green Growth”

Fostering
Climate Industry

1-1.
1-1.Improving
Improvingenergy
energyefficiency
inefficiency inthe
theindustrial
sectorindustrial sector
1-2.
1-2.Expanding
ExpandingR&D
R&D
investment
ininvestment inGreen
GreenTechnologies
Technologies
1-3.
1-3.Developing
Developingkey
keyclimate
climateindustries
industries

Improving
Quality of Life

Contributing
to theGlobal Efforts

2-1.
2-1.Enhancing
Enhancingqualityqualityofoflife
life(transportation)(transportation)

3-1.
3-1.Setting
SettingMid-term
Mid-term
mitigation
mitigationgoal
goal

2-2.
2-2.Green
Greenlife-style
life-stylechangechange2-3.
2-3.Enhancing
EnhancingAdaptation
Adaptation

3-2.
3-2.Contributing
Contributingtoto
Post-2012
Post-2012negotiations
negotiations

2-4.
2-4.Enhancing
EnhancingAwareness
Awareness
andchanging
and changingpatterns
patterns
2-5.
2-5.Scientific
Scientificmonitoring
monitoring
andprediction
and prediction

3-3.
3-3.Active
Activedeveloping
developing
country
countryassistanceassistanceandinternational
and international
cooperationcooperation

GHG reduction target for Green Growth
4% by 2020 from the 2005 levels (30% of the 2020 BAU levels),announcement on 17 November 2009.

4. Eco-innovation in industrial complexes

Industrial complexes in Korea
Industrial area
Type of
Number of

Designated area

complexes(103 m2)

industrial
complexes

Utilization
Designated area

Utilization ratearea(103 m2)(%)(103 m2)

National

40

862,681234,883

233,172

99.3

Regional

368

422,461

125,036

119,637

95.7

Urban hi-tech

6720

67

67

100.0

Agricultural

401

63,92543,82042,676

97.4

Total8151,349,787

403,806

395,552

98.0(As on Dec’ 2009)

23.4%
CO2

16.0%
Gas

35.6%

28.6%
Electricity

Reduce resource and energy, maximize efficiency, reduce
environmental pollution through resource circulation such as
recycling of wastes and by-products.

Oil

Conversion of present industrial complexes to low carbon green
growth complexes

15.8%

Densely located SME, High energy consumption, major
sources of environmental pollution
Emission of environmental pollutants, conflict with local
communities

Waste generation, Energy
consumption and CO2 emission
in industrial complexesWaste

Industrial complexes are the engines of Korean economy
National, regional, and agricultural industrial complexes
Manufacturing industries within industrial complexes - 60%,
export rate - 75%, employment rate – 47%

Environmental policies stimulating sustainable
development of industrial parks in Korea
Rio Earth Summit (1992) – Adoption of cleaner production and industrial ecology
concepts by Korean industries to improve their environmental, social and businessperformance.
APEFIS - Act to Promote Environmental Friendly Industrial Structure (MKE, 1995).
Korean National Cleaner Production Center establishment- Streamlining the supporting system,- Cleaner production transfer and dissemination (technology transfer, international
collaborative projects, supply chain environmental management, environmental
management system and EIPs),- Promoting environmental industry

Industrial complexes as platforms for low
carbon green growth
Eco-industrial park (EIP) project in Korea
Objective:
An industrial complex will be converted into a base toachieve low carbon green growth by maximizing theefficient use of raw materials and energy and reducing
the generation of environmental pollutants through theestablishment of resource recycling systems that allowsre-utilizing wastes and by-products.

Gradual developments..
Establishment of Eco industrial parks (EIPs) through resource circulation network development forenvironmental pollution reduction and energy efficiency maximization in industrial complexes.
* Based on article 4.2 of Korean law : Act to Promote Environmentally Friendly Industrial Structure (APEFIS)

Establishment of national EIP demonstration project plan (MKE)

Selection of demonstration sites: Pohang, Yeosu, Ulsan mipo-onsan

Additional selection of demonstration sites: Banwol-sihwa, Cheongju

Change of EIP ownership (KNCPC → KICOX)

Beginning of 2nd phase EIP projectObjective
Eco-Industrial ParkTransition: From CIP to EIPResources & energy reuse

Organization in-charge
Korea Industrial Complex corporation (KICOX),
Ministry of Knowledge Economy

11stst Phase
Phase (’05~’09)(’05~’09)
 Finding out Industrial symbioses and networks
 Identification of required technologies
 Assessment of cleaner production

Zero-emission

Harmony with community

Sustainability

 Support for BPX, EMS and EIP information systemconstruction
 Education, training and advertisement by corporate
organization

Korean EIP Master plan

Phase 1

Phase 2Phase 35 EIP pilot project($17million)

Diffuse EIP throughover 8 IPs($68million)

2~3 new Koreantype EID($6.8million)

2005 ~ 20092010 ~ 20142015 ~ 2019

Eco-Networking between plants
for 5 national industrial parks(Material, energy, by-product)

Transfer and disseminate
experiences to otherIndustrial Parks (8 sites)

Design the new EIP
based on the industrial
ecology principle

Role of Ulsan EIP center in synergy
development
Research and development into business

23

Enabling System: R&DB
Steps and proceduresof project funding
MKE
EIP project fundEmployee support

EIP Center

Royalties paid(Government sponsoredfund: 20 ~ 40%)

Report ofCommercialization

KICOX

Center management supportAssessment Board

Top down projectfunding

Support selected projects
Funding decisions

Network searching

Bottom up projectfunding

Project participants

University,
Research institutes, &Company

Funding(up to 75%)

Feasibility Study

Funding(up to 25%)

Funding(any deficit )Local government

Commercialization

Ulsan PacificChemical

DaeHan Jedang

04.200204.2002

TaeKwang
1st company

Hansol EME
04. 2009

TaeYoung

SamYang Cor.
02. 2010

JinYang
Chemical

SK Energy

KCC

12. 2009
10. 2007

2009.05

NCC

12. 2009

01. 2011

06. 2009

HyunDaiHeavy WIF

NamBu

SKC

NokSan
MWWTF

HyunDai Motor

04.2002

01. 2004

DongBuHi-TechKP Chemical

10. 2010

Waste Wood
05. 2011

2015
11. 2009

AeKyungPetrochemical

YongSanChemical

SungAmMWIF

Koentec

SGR Tech

Waste Plastic

Korea PTG

Petrochemical
Complex

Oil Treatment
Company

HyoSung

06.2008

01.200305.2009

KumHo
Petrochemical

HanJu

SungAmMWLF

HyoSung
2nd company

09. 2010

02. 2010

01. 2010

09.2004
2015

2015

TNC

HanGil06.2004

HanHwaPetrochemical

JungGuFWTF

YongYoun
MWWTF

TaeWonMulsan

HuSungIndustrial
Complex

02. 2010

SamSungPetrochemical
08.2008

01. 2012

SinHung Oil
01.2003

LG Chemical

Ajin Metal

04.2002

DongDuk Gas

01. 2010

LS-Nikko

2000~2006

12.2004`

IlSin PolyTech

HanJu Metal

PungSan Metal

Korea Zinc
05. 2011

01. 2010

12. 2009

01. 2011

EnergyGas
Byproduct
Water
Product
In operation
Plan

01. 2005

01. 2011

01. 2010

Korea Alcohol

Oil Refining
Petrochem.&ChemicalMetal
Waste Treatment Corp.
Paper
Automobile
OtherEnviron. Facility(Public)

01. 2012

12. 2009

03. 2009

SunKyoung
WatechDongNAm
Jeongmil

Dau Metal

EST

Korea Pulp

YooSung
WIF

10. 2009

JSE

S-Oil
09.2008

10. 2009

25

09. 2007

Application of eco-efficiency to anindustrial complex
Max ∑ Product ＆ ServiceMin ∑ Resources ＆ Energy
Min ∑ Waste
R1 ER

PE22 E

Company 1

RI2 = W I1

WE1 + W I1 = f(PE1 + RI1)

Company 2
WE2 + W I2 = f(PE2 + RI2)

RI1 = W I3

Resources＆ Energy
RE1 + RE2+RE3
EE1 + EE2+EE3

PE2
RI3 = W I2

R3 E

PE2

Company 3
WE3 + W I3 = f(PE3 + RI3)

WE1

W E3

WastesWE1 + WE2 + W E3

∑ Product ＆ Service
Eco-efficiency =∑ Resources ＆ Energy

WE2

Product＆ServicePE1 + PE2+PE3

Eco-efficiency
Value

Concept developed by the World BusinessCouncil on Sustainable Development (WBCSD)
and successfully applied by many businesses

Environmental impact (resources, pollution)

Types of synergies and selectedindicators

Eco-efficiency evaluation
 EE evaluation is based on the WBCSD approach.

EI - economic performance indicator, US$
EN - environmental performance indicator
ΣENm - ‘m’ type of environmental factor is a function of various independent
categories of resource consumption, energy consumption, and CO2 emission.
 The calculations of resource consumption, energy consumption, and CO2
emission are conducted separately.

Eco-efficiency evaluation
 Representation of multiple evaluation items by a single indicator was madeby averaging the sum of squares of the items :1 n 2
ENm = NEI = ∑Si
∑
n i=1
i=1

∆ EE =EEa − ΕEb
EEa

NEI – Normalized Environmental Impact, n - number of factors

 Evolution of eco-efficiency due to ‘n’ number of IS networks can be
expressed as:nn n n n  n nn
 ∑ Pa ∑ Pb  ∑ Pb  ∑ I b   ∑ I b − ∑ I a  ∑ Pb
∆EEi =  i =n1 − i =n1  = i =n1  i =n1 − 1 =  i =1 n i =1 , i =n1 = 1.0 (assumed )∑ 
 I
i =1IIII  ∑ Ib∑∑∑
ab b ∑ aa
 ∑i =1i =1i =1
 i =1  i =1  i =1nn
 n  ∑ I b − ∑ I b (1 − Ri )   ∑ Ri ni =1i =1i =1==, ∑ I b = 1.0 (assumed )n  n
i =1I b (1 − Ri )  ∑ (1 − Ri ) ∑
i =1  i =1


R – Overall environmental impact reduction in each yearAssumptions
 The total economic benefit of the companies involved in
the IS networks is normalized to 1.0.
 The total environmental impact of the companies
concerned

beforeIS

network

establishment

isnormalized to 1.0 (considered as a baseline for
evaluating the relative environmental performance after
the establishment of synergy networks).

Enhancement of eco-efficiency of synergy
networks with respect to each indicatorIn submission: Journal of industrial Ecology

Eco-efficiency evolution

33

Continuous improvement of eco-efficiency of Ulsan EIPDevelopment of Ulsan EIP strategy

Ulsan EIP center

Evaluation of Eco-Efficiency
in Ulsan Industrial Parks

Top down IS networking potential Identification(government data, Eco-center staff, Experts)

Bottom up IS networking potential
Identification(Company, Technical forum, Experts)

Monitoring and Assessment
EIP Performance Enhancement

Feasibility study for business model(R&D , Engineering Company, Stakeholder, etc)

Implementation(Stakeholder participation)
Stakeholder satisfaction ( Indicators)
34

5. Conclusion Korea’s Green Growth policy targets transformation of country’s growthparadigm from “quantitative growth” to low carbon “qualitative growth”.
 National GHG emission reduction target of 4% by 2020 from the 2005 levels(30% of the 2020 BAU levels) can be achieved by the green growthstrategies.
 Korean EIP project which is aimed at the collective innovation ofindustrial complexes is one of the core elements of the Korean green
growth strategy
 The objective can not be fulfilled by technological innovation alone. Socialand cultural innovations should also be considered as the integral
parts of the green growth strategy.

 The eco-efficiency of individual synergy networks in the post-EIP initiative inUlsan have resulted in increases of up to 63%.
 The evolution of seven synergy networks have resulted in an overall ecoefficiency enhancement of ~20%.
 Establishment of more synergy networks in future could result in higher ecoefficiency of the industrial complex.
 The eco-efficiency enhancement of due to the synergy networks in the postEIP initiative in Ulsan may be deemed as an example of eco-innovation.

Announcement of Global Green Growth Institute by President Lee at the UN Climate Change
Conference (December 18, 2009)

UOU welcomes you to2013 ISIE conference(Jointly(Jointly organizedorganized byby China,China, JapanJapan andand Korea)
Korea)

39

Thank you

Professor, University of Ulsan
102 Dehakro, Nam-Gu, Ulsan, South Korea
Tel: 052-259-1050
Fax: 052-221-0152
E-mail: parkhs@ulsan.ac.kr
Director, Ulsan EIP center
1599-23, Samsan Dong, Nam-Gu, Ulsan, Korea
Tel: 052-228-1580
Fax: 052-228-1589