Big 3 Lead Alternative Energy Development

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Summary
Korean companies are turning their attention to the development of alternative energy to substitute for fossil fuel in the midst of surging global oil prices.While electronics and heavy industries look to muscle into the solar energy business, automakers are in full swing developing hybrid vehicles. Refineries here are also seeking to create funds for alternative energy. LG Group recently confirmed an internal plan to foster solar business as a new growth engine. Following last year's establishment of LG Solar Energy, which will exclusively take charge of solar energy generation business, it has recently set up separate develop projects for a solar lighting module for LG Electronics, and polycrystalline silicon, usually dubbed as polysilicon, for LG Chemical.Samsung Electronics has also built a photovoltaic research institute at its LCD research center, where a project to develop solar battery products is underway. Hyundai Heavy Industries launched a solar cell plant in Eumseong, North Chungcheong Province, last month. The new plant will produce photovoltaic modules generating 30 megawatts every year, which is enough for about 10,000 households to use. Hyundai-Kia Automotive Group is looking to develop eco-friendly hybrid vehicles, which are more fuel efficient with lower emissions than conventional ones. The world no.6 maker plans to produce hybrid cars in 2009, followed by test operations of fuel cell vehicles in 2012 and their commercial production later. As part of a master plan, it will set off production of a hybrid version of its compact car, Avante, next year.
My Opinion
Recently, world economies are suffering from high oil price, because oil is the core factor to lead all economics circumstance. But as you know, Oil will be exhausted soon. Can you imagine if we don’t have alternative energy after exhausting? Many people will probably worry about their car’s fuel. It is not only individual’s problem, but also entire industries. In this tough era, what should firms do in order to overcome?
They won’t be able to operate if they just expect increasing supply of oil. Many major firms have researched to develop alternative energy, and have made an effort to improve their technology. However, I think that we still lag behind other developed countries. Lots of products based on alternative energy, which commercially use in developed countries, aren’t still used in Korea; furthermore we still don’t have any legal system. In other words, we pursue other countries. But In competitive business, follower has very limited opportunities. Therefore, we have to find out Blue Ocean so as to increase our quantity of output. I think that alternative energy is the Blue Ocean. Even though, we lag behind other countries at the moment, it isn’t too late. Therefore if government and firms concentrate on developing alternative energy, we will be able to make lots of profit.
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