Yi Whan-woo is a Korea Times journalist primarily covering finance. He writes in-depth articles on macroeconomy and financial markets and previously covered sports, politics, diplomacy and inter-Korean affairs, among others. Feel free to contact him at yistory@koreatimes.co.kr.
Korea's forestation projects in full swing
Korea Forest Service (KFS) Minister Shin Won-sop, right, poses with Korindo’s staff during a visit to Indonesia in July. / Courtesy of KFS
By Yi Whan-woo
By Yi Whan-woo
The state-run Korea Forest Service (KFS) will engage in multiple projects to plant 1 million hectares of forest worldwide by 2050 to secure a stable supply of resources and renewable energy.
The KFS will encourage local firms to plant trees on 350,000 hectares of deforested mountains abroad by 2021 in addition to the 280,000 hectares that have already been turned into forests, KFS Minister Shin Won-sop said in a written interview.
“Our investment into overseas forestation projects is crucial for a stable supply of lumber as well as for bio-energy sources such as wood pellets, rubber, and palm oil,” Shin said. “We plan to supply up to 50 percent of lumber on our own by strengthening these projects.”
Shin said the country imports 83 percent of the lumber consumed in the domestic market. He stressed that securing a stable supply of lumbers is important for the domestic economy, saying international lumber prices have been on the rise, up from $159 per cubic meter in 2008 to $197 per cubic meter in 2011.
“A lack of natural resources adds to problems the international community faces. Balanced environmental protection and development of energy resources are becoming more important amid the rapid climate change,” Shin said.
Since it was established, the KFS has helped Korean companies increase their investments in plantations and develop forests to secure a stable supply of lumber and bio-energy sources produced from the developed areas.
Through these efforts, the KFS is actively participating in international efforts to reduce carbon emissions, which are being made in line with the Kyoto Protocol. The United Nations Framework Convention on Climate Change (UNFCCC) sets binding obligations on industrialized countries to reduce emissions of greenhouse gases. The UNFCCC allows developed countries including Korea to trade their emissions quotas among themselves and to receive credit for financing emission reductions in developing countries.
The KFS has so far signed agreements with 21 countries to acquire the right to preserve forests there.
The agency’s forestation projects are mainly centered on Asia. For instance, the KFS signed a deal in 2009 with Indonesia and Cambodia, respectively, to preserve 200,000 hectares of land.
“We are sharing our know-how and knowledge on preventing forests from being devastated in those countries,” Shin said.
“For instance, we formed a green belt to reduce yellow dust in Mongolia. We are also trying to restore mangrove swamps devastated by a tsunami in Indonesia,” he said. Of all the Korean forestation firms that have advanced into Asia, Korindo is widely acclaimed in Indonesia for its efforts.
The company produces up to 800,000 cubic meters of plywood annually, and this figure accounts for 10 percent of the same products manufactured in the Southeast Asian country. It also produces pulpwood, palm oil as well as renewable energy resources.
Korindo is among a number of firms that have successfully achieved environmental protection and industrial growth since it was established in 1968, Shin said.
Shin said that the KFS also helped Korean companies advance to other countries, such as Uruguay, Canada, and Russia.
In Uruguay, Korea’s leading steelmaker POSCO acquired the right in December 2010 to participate in an Afforestation, Reforestation Clean Development Mechanism (A/R CDM) project.
The project, registered in the UNFCCC, allows firms development on land which has not had forest for at least 50 years.
“It was the first time for Korea to take part in the A/R CDM project,” he said. “We’ll plant rubber and palm trees and will also draw more investors.”
He also hinted at participating in the Reducing Emissions from Deforestation and Forest Degradation+ (REDD+) project. A collaborative program run by the U.N. focuses on creating a financial value for the carbon stored in forests. Through the program, it encourages developing countries to reduce emissions from forested lands and find ways to ensure sustainable development.
“The project goes beyond deforestation and forest degradation, and includes the role of conservation, sustainable management of forests and enhancement of forest carbon stocks,” Shin said. “And we should find a way to utilize it in relation to our forestation projects abroad.”
Shin said the KFS will increase its financial support for Korean companies that plan to participate in forestation projects.
The total amount of loans the KFS will provide to the possible investors will increase to 40 billion won in 2015, up from 20 billion won in 2012.
The government will also increase the fund for official forestation development assistance (ODA) to 6.3 billion won by 2021, up from 3.5 billion won last year.
This report was sponsored by the Korea Forest Service.