The Role of the Government in the Development of the Rechargeable Battery Industry in Korea

Abstract

Abstract This article discusses the role of the government in the development of the rechargeable battery, particularly the lithium-ion battery, industry in Korea. The Korean government aimed to promote the small-sized rechargeable batteries in the late 1990s and early 2000s. It began to emphasize support of the middle- to large-sized lithium-ion batteries in the early 2010s. The policy measures have comprised enhancing infrastructure such as human capital and establishment of a rechargeable battery testing center, increasing R&D expenditure, and promoting the electric vehicle (EV) industry through tax and financial incentives, public procurement, and increasing the number of EV charging facilities. Korea has become one of the leading lithium-ion battery producers in the world. The three large Korean companies, i.e. LG Chem, Samsung SDI, and SK Innovation, have come to share more than one-third of the global production of lithium-ion batteries in 2020. Korea’s experience provides policy implications to other countries intending to develop technology-intensive industries. It would be needed for the WTO system to modify the provisions in the sense of providing policy space for development of technology-intensive industries of developing countries.