Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Fine dust costs Korea 10 trillion won a year
By Park Jae-hyuk
The deadly air pollution in Korea ― mainly caused by fine dust particles in the atmosphere ― is estimated to cost over 10 trillion won ($8.9 billion) a year, a recent study showed, Thursday.
According to Professor Bae Jeong-hwan of Chonnam National University in Gwangju, the social cost amounts to nearly 11.8 trillion won, even under conservative estimates which exclude the effects on consumption and industrial activities.
“The estimates measured social benefits from reduction of air pollutants including fine dust, volatile organic compounds, nitrogen oxides and sulfur oxides,” the professor said. “Air pollution has a negative impact on the quality of life, as well as on the overall economy.”
An OECD study last year estimated that the cost will reach around 20 trillion won in about 40 years, wiping out 0.63 percent of Korea’s GDP.
Korea, the country with the worst air pollution level among OECD members, is expected to suffer the most economic damage and the highest premature death rate from air pollution among member countries in 2060, according to the study.
Some experts said the damage could be much worse, noting that fine dust and yellow dust from China consistently cause serious social losses every spring. They point out new measures are needed to estimate the social costs from air pollution.
According to the pollution monitoring website AirVisual, Seoul ranked second among large cities worldwide in terms of air pollution after New Delhi, India, earlier Tuesday. A U.S.-based non-profit research institute also said the annual average density of fine dust in Korea was the second-worst among OECD members after Turkey.
Unexpected beneficiaries
While most Koreans are struggling to avoid the world’s worst air pollution, some businesses unexpectedly benefit from it.
For instance, the size of the air purifier market reached 1 trillion won last year, up from 300 billion won in 2013. The market is expected to reach 1.5 trillion won this year, up 50 percent year-on-year.
Clothes dryer manufacturers are also beneficiaries, as more households dry their laundry inside with the windows closed. Electronics retailer Lotte Hi-mart said the sales of dryers soared by 1,100 percent this month year-on-year.
But those home appliances priced for millions of won are hardly affordable for low-income families who have no choice but to wear masks to protect themselves from air pollution.