http://news.yahoo.com/s/afp/20091201/sc_afp/climatewarmingskorea

AFP – South Korean Knowledge Economy Minister Choi Kyung-Hwan speaks during a press conference in Seoul. South …
SEOUL (AFP) – South Korea is caught in a dilemma between its promise to drastically cut greenhouse gas emissions and mounting concerns that the move will only benefit business rival China, a minister said Tuesday.

Knowledge Economy Minister Choi Kyung-Hwan also said there were fears that energy-intensive local companies such as steel firms and automakers would relocate overseas to avoid tougher curbs on emissions.
South Korea last month set an ambitious target for its voluntary cut in greenhouse gas emissions, saying it wants to set an example to other developing countries.
The cabinet vowed by 2020 to cut emissions by four percent from the 2005 level, which it said was equivalent to a 30 percent reduction on the basis of a "business-as-usual" development pattern.
"The path is not an easy one. Many in the business community still continue to express serious concern that we may lose our competitive edge. Some say the burden would deal a fatal blow to our growth potential," Choi told journalists.
"This is a very challenging goal," Choi said, adding no country has ever succeeded in reducing gas emissions while seeking to jump from the 20,000 to 30,000 dollar per-capita income level as South Korea is doing.
"Many businessmen are voicing their concerns that local energy-intensive sectors including steel and petrochemical firms would lose out (to Chinese rivals)," he said.
Choi had misgivings when the cabinet approved the target last month, expressing concerns over the strains on business.
Hong Sung-Il, senior manager of the Federation of Korean Industries, said emissions rules would be a factor for local businesses to consider moving to other countries with looser regulations.
Heavy energy users such as steel and cement makers have already reduced consumption in terms of the business as usual pattern as part of cost-cutting efforts, he told AFP.
Choi said there are fears "companies would abandon their businesses here and rush to relocate overseas."
He quoted the Korea Energy Economics Institute as saying core industrial sectors could be hit hard. Petrochemicals would see a 10 percent drop in production if emission goals are implemented, the institute says.
Since 1990 the country's carbon emissions have doubled, while developed countries saw a decline or a far smaller rate of increase, Choi said.
"We're caught up in a dilemma between these concerns and the commitment to joining in the global efforts to reduce gas emissions," the minister said.
To make good on its promise the government will implement a mixture of regulations and incentives, including financial support for research and development and tax benefits, he added.
In contrast to industrialists, the Korean Federation for Environmental Movement has said the four-percent cut was less ambitious than expected. It has called for a 25 percent cut by 2020 from the 2005 level of 598 million tons of emissions.