Trade, Industry and Energy Minister Lee Chang-yang speaks during a press briefing in Sejong, Tuesday.

By Lee Kyung-min

Korea should fine-tune its export competitiveness and seek a more extensive use of nuclear power in order to weather inflation and energy shocks, a deadly mixture of risks that could cripple the livelihoods of many and sap economic vitality, the country's top energy policymaker said, Tuesday.

The nation's import-oriented power plan will remain extremely vulnerable to global commodity price volatility, unless policy goals are reoriented to prioritize energy efficiency, according to Trade, Industry and Energy Minister Lee Chang-yang.

The more sustainable initiative long embraced by advanced peers of Korea will, in his view, help the country re-evaluate the national energy strategy which has focused almost exclusively on rapid economic growth at the expense of long-term energy conservation considerations.

"The economy is experiencing a bout of difficulties as of late, sparked by global inflation and soaring energy prices around the globe," Lee said during a press meeting in Sejong, Tuesday. It was his first official press conference with reporters after taking office.

"The approach to mitigating the two shocks is two-pronged. One is to increase competitiveness of exports and promote energy efficiency, as underpinned by better and more extensive use of nuclear energy," he said.

The ministry's energy policy directives announced early Tuesday are reflective of the new priorities, a set of measures that will fortify the nation's energy security and limit energy shocks at the same time, he said.

The goals can and will be furthered by collaborative efforts among the energy ministry, the infrastructure ministry and Seoul Metropolitan Government, as best exemplified by the city of New York recently passing a law to ensure buildings meet the government's energy efficiency standards.

"The talk about transforming Seoul into a smart energy city was among agenda items during a recent Cabinet meeting. Minister of Land, Infrastructure and Transport Won Hee-ryong and Seoul Mayor Oh Se-hoon were keen on advancing the idea."

The looming fears of stagflation would be best countered by strengthening productivity, both in the industrial and labor sectors. Greater tax benefits for businesses, mostly in the form of tax credit increases will facilitate the longstanding problem, he said. Stagflation otherwise known as recession-inflation is where inflation and unemployment are high, while economic growth slows.

"Discussions are underway with the Ministry of Economy and Finance to provide an increased tax credit for facility investment, the best and most efficient way to bolster productivity. Policy assistance to promote facility investment will be key to moderating stagflation woes."

The ministry will roll out measures to foster the semiconductor industry later this month, encompassing other related industries including displays, batteries, artificial intelligence (AI) technologies and robots.