Due to worldwide energy shortage and high oil prices, securing alternative energy and energy saving policy are being promoted, and companies are also improving process to reduce carbon dioxide emission and securing carbon emission right through green business; energy-saving, mandatory, not necessity, has become the key area of future growth power for all countries and companies.
In particular, Japan established a policy to supply 20% of the total power with renewable energy by 2020 due to the Fukushima nuclear accident caused by earthquake, and the adoption rate of LED lighting products are the highest in the lighting market. In each country, incandescent bulbs exit policy is being promoted, and the place is being replaced with LED lighting.
Taiwanese government will announce electrical bill raise, manufacturing facilities 35%, commercial facilities 30%, and household 11%, in May to reduce energy consumption, and at the same time, present vitalization policy to expand LED lighting use.
Countries around the world are conducting various short and long-term policies for its stable energy supply and reduction of consumption through energy policies, and LED lighting is an important part of country’s energy policy promotion.

In this column, we will focus on LED lighting distribution related policies Ministry of Knowledge of Economy of Korea announced last March 2012. If you want more detailed information, you can check the homepage (www.mke.go.kr).
LED industry in Korea began to grow in earnest since 2009, and with the rapid growth of LED BLU TV in 2010, Korea became the world’s No.2 country with LED industry manufacturing capability. Because of sluggish LCD TV demand due to economic crisis in Europe and global recession started since H2 2011, LED industry growth has been subsided, and the growth of LED lighting market is expected.
In addition, energy saving is inevitable in Korea due to large-scale power outages and high oil-price, and since more than 98% of energy consumption is being imported, government-leading energy management policy is more needed.
Korean government is proposing policies to distribute LED lighting of various aspects such as lighting power savings for expanded distribution of LED lighting products, achieving 30% LED replacement in public facilities for LED industry development, and replacement support of traditional market lighting and small-business advertising signs.

In February 2012, Korea significantly expanded public sector LED lighting distribution budget from KRW 8.2B to KRW 31.9B through the inspection of green growth policy implementation.
According to the national policy, related agencies are improving LED lighting product performance standard and policy for stable growth of the market and to provide high-quality LED lighting products to consumers, and policy will be continued to be revised in accordance with market situation and technology development.
As an example, the performance criteria of existing high-efficiency certified LED lighting products has been raised, and LED certification process has been simplified; makers can save administrative cost due to simplification of certification procedures and consumers can use high-quality products at the same price, being helpful to both sides.

In addition to national policies only for LED lighting, ESCO business, supports technology and funds to energy users when supplementing facilities for energy-saving to reduce financial burden, will be actively used with LED lighting.
ESCO business is the energy-saving business. When ESCO-assigned energy specializing companies introduce energy-saving facilities such as electric lighting and heating to specific buildings or facilities, ESCO companies or users are supported with policy fund and investments are retrieved after the installation.
It started in earnest in the 1970s in the U.S and is underway in 70 countries worldwide.
ESCO business contract procedure varies depending on the contract, and ESCO business owners or users should carry forward ESCO business by adopting an efficient method.
Korea has improved the system to 3 different contract methods by adding new benefit sharing method, and strengthened energy-saving guarantee so that energy users are more confidence to push ahead with ESCO business.

ESCO Business Contract Methods

Separate from the government’s policies, Korea LED Association, a private organization of Korea, is also promoting ‘National Affordable LED Lighting Project.’ ‘National Affordable LED Lighting Project’ supports products and installation to consumers for free and makers retrieve that money from financial institutions, and financial institutions retrieve that money from the part of electricity bills. The project will begin with underground parking garage of apartments.
Fortunately, LED lamp prices are continuing to fall; KRW 10,000 range LED lamps can be easily purchased from the general stores, and products under KRW 10,000 are being released. It will contribute to increasing market share of LED lighting.

LED Lamps Displayed at Supermarket

             E-Mart(in Korea)                          Homeplus(in Korea)                        Carrefour(in China)

KRW 10,000 Range LED Lamp Products

Conclusion
Lighting industry is very close to national energy policy and market conditions change a lot depending on policy changes. Governments should prevent the confusion of companies in accordance with policy changes through ongoing policy promotion and complement. At the same time, companies should show products that can increase consumer demand with market demand-appropriate products development and affordable prices. 
LED lighting is being recognized as the only lighting that can replace existing lightings, but if it does not meet that consumer wants, such as prices, quality, and service, the future of LED industry will not be bright.
We should lead market growth by creating new LED market with the development of application as Apple did with its own iPhone and iPad, rather than commenting on the blooming period of LED lighting,