The Ministry of Trade, Industry and Energy (Minister Seong Yun-mo )has for the first time selected 62 energy-specialized companies to lead eco-system creation of the Energy Industry Convergence Complex (EICC) and technological innovation.  

Energy-specialized companies are those that have moved into the EICC and whose energy industry and energy-related industry sales account for 50% or more of their total sales, according to Article 14 of the Special Law for Designation and Promotion of Energy Industry Convergence Complex”(hereafter referred to as Energy Convergence Complex Law) and Article 14 of its Enforcement Ordinances. 

The chosen companies are those that scored a total of 70 points or more in the comprehensive evaluation of technology level, management capability and connectivity with energy-intensive industries, according to Article 5 (Requirements for Designation) of “Operation Guidelines for Designation of Energy Specialized Companies”. 

Applications for energy-specialized companies were filed from Jan. 20 to Feb. 23 with the evaluation conducted from Feb. 24 to Mar. 23. 

The letters of designation were issue on Mar. 31. 

The business types of the current batch of energy-specialized companies include manufacturing of high-efficiency equipment, manufacturing and construction of power systems, photovoltaic materials and parts, energy software, rechargeable battery materials and parts, and radiation fields. 

Classification of business types of energy-specialized companies[Source=Ministry of Trade, Industry and Energy]

DongHwa Entec Co., Ltd., as a high-efficiency equipment manufacturer and energy-specialized company, won high scores in the following categories: key technology-related patents and R&D technological capability, management capacity as per debt and liquidity ratio, sales of energy industry-related products and connectivity of future business with energy-intensive industries. 

The following benefits are provided for energy-specialized companies: △Local tax reduction △2% point additionally provided for subsidy rate for local investment encouragement and facilities △Additional points for MTIE’s R&D projects applied preferentially according to the “Local Tax Reduction and Exemption Control Act and local government ordinances. 

The MTIE plans to select additional energy-specialized companies during the second half of this year in consideration of demand from companies in the EICC. 

Furthermore, the MTIE is driving revision of the EICC law to expand effective support for energy-specialized companies, which includes preferential treatment provisions of exemption for national and public property, preferential purchasing of public organizations, tax support and employment subsidies. 

The MTIE related personnel said, “We will continue to drive support projects including empirical research on energy-specialized companies, professional manpower development and commercialization promotion, anticipating that energy-specialized companies will contribute to revitalization of the Energy Industry Convergence Complex.”

Hence, the MTIE plans to embark on additional selection of energy-specialized companies during the second half of this year in consideration of demand from companies in the Energy Industry Convergence Complex.