By Kim Yoo-chul
Staff Reporter

Korean conglomerates are investing heavily in the highly promising solar energy business.

In order to greatly reduce carbon dioxide emissions, the government is chipping in to offer subsidies to promote solar power generation projects.

Although such incentives don't amount to much, the companies have plans to either set up solar cell plants or to expand their capacity.

On Tuesday, Samsung Electronics said Samsung Everland will aim for the construction of a solar-cell plant in Gimcheon, North Gyeongsang Province, that will have the potential to produce 20 megawatts of energy.

The project would leap ahead of rival LG Solar Energy in production capacity.

Samsung officials said the plan was now underway, but declined to elaborate.

''Samsung's LCD unit is reviewing possibilities for the development of solar cells used in modules with our own technology,'' a Samsung spokesperson said.

''As far as I know, Samsung will invest 141 billion won or about $130 million for the possible complex with electricity from the plant estimated to meet 3 percent of the total power needs of Gimcheon,'' a spokesman of the city government told The Korea Times.

''Wind and sunlight are quite attractive here and construction will start from the middle of this month,'' the official said.

Some industry experts say solar business potential will depend upon the supply of polysilicon. Polysilicon is an essential raw material used in the production of solar cells. Increased production of solar cells has caused the contract price of polysilicon to triple in recent years.

But what is making local companies inject fresh capital is the business' marketability.

According to market research firm, Yano Research Institute, solar cell production worldwide jumped 29.5 percent on a yearly basis to 1787,7 megawatts in terms of power generation capacity in 2005 and is expected to grow more than threefold by 2015.

On such forecasts, LG Solar Energy, an affiliate of LG Group, last week completed a solar facility with an investment of some 110 billion won in Taean, South Chungcheong Province.

The plant, which is located on some 300,000 square meters of land, will have a 14-megawatt total output capacity, enough to meet the power needs of 8,000 households around the region.

LG plans to further invest a maximum of 1 trillion won in the solar business and LG officials say the plan is just the ''starting point.''

Additionally, Hyundai Heavy Industries, the world's No. 1 shipyard, is set to spend 300 billion won on expanding an existing solar module and solar cell production line and construct a new plant by 2009.

Currently, the company's total investment in the project since 2007 stands at 34 billion won. Hyundai expects the facility will generate more than 1 trillion won in revenue and create 1,000 jobs.

''The urgent issue is to secure modules because the government will cut its subsidies to solar plant operators by 30 percent from October,'' according to the Gimcheon official.

Power from solar energy emits about 30 grams of greenhouse gases per kilowatt-hour compared to 400 grams for a gas-fired plant and 915 grams for a coal-fired power plant, experts say.

jhan@koreatimes.co.kr