Hansol HomeDeco Business Area
Future foodstuffs of Hansol HomeDeco
Korea's first overseas afforestation business was started by Hansol HomeDeco with 16,000 ha of forest (eucalyptus) in the west of Australia in 1993. Afterwards, Hansol HomeDeco expanded its business to New Zealand in 1996 and has formed a forest of 10,000 ha (pinus radiata). Overseas afforestation in New Zealand is about to finish long-term investment of over 20 years, starting with lumbering in 2017.
Stable supply of wooden resources
Forest area of South Korea is about 6.27 million ha and accounts for 64% of the national territory, but 84% of wooden material supply relies on importation and self-sufficiency rate is only 16%. Although South Korea had a miracle of turning bare mountains into green forests through national greening projects, climate and soil of South Korea are inappropriate for fostering economic forests. Furthermore, after the Rio Declaration on Environment in 1992, each nation has reinforced regulations on lumbering of natural forests and illegal trading of lumber in order to protect forests. Accordingly, South Korea is in need of overseas afforestation business to secure stable forest resources since it imports over 80% of wooden materials.
Response to climate change and securing carbon credit
The earth is becoming increasingly hot. Temperature will be increased by over 2 degrees after 100 years. Meadows are turning into deserts, and the Korean Peninsula is gradually becoming subtropical. When temperature of the Korean Peninsula is increased by 1.5 degrees, it will suffer the destruction of ecosystem such as scarcity of water resources, flood and tropical diseases. Overseas afforestation is important because of this. Overseas afforestation can prevent global warming and desertification and secure carbon credit.
The carbon credit trading system was introduced by different nations since 2006 after the Kyoto Protocol to the United Nations Climate Change Convention held in Kyoto, Japan in 1997. Hansol HomeDeco is creating stable carbon by signing a contract with a carbon lease company using carbon credit generated in a forest of 10,000 ha. As such, overseas afforestation is the key to global warming that resolves structural problems of South Korea such as the narrow national territory and slow arboreal growth.
Practice of non-governmental diplomacy beyond corporate business
Hansol HomeDeco plays the role of a non-governmental diplomat that introduces South Korea to the locals of New Zealand by maintaining reliable and solid partnership. The Ngati Porou tribe, a partner of Hansol, mainly resides in the northeastern part of New Zealand. It has the second largest population among the Maori, having great political and economic influence in New Zealand. The Ngati Porou tribe attracted afforestation investment of Hansol to promote prosperity of the tribe and is placing various efforts to attract foreign investment by engaging in a variety of economic activities.
Hansol and the Maori (Ngati Porou tribe) have been overcoming difficult times by collaborating as business partners for over 20 years. As such, the relationship between Hansol and the Maori has become as close as a family rather than a simple business relationship.
Hansol HomeDeco is reaching beyond corporate business to increase national competitiveness by adding values of nature in the world.
Overview of afforestation business in New Zealand
Location East Coast (Gisborne) / Northeastern part in the North Island of New Zealand with optimal mild climate for growing trees Afforestation period From 1996 to 2003 Afforestation area 10,000 ha Tree type Radiata pine Purpose Structural material, furniture material, plywood material, pulp Form of collaboration Joint VentureMap of the afforestation area in New Zealand
History of Afforestation Investment
1995 Signed an MOU between Hansol and Ngati Porou Whanui Forests Limited (NPWFL) 1996 Founded Hansol New Zealand Ltd. and signed an afforestation contract with the Maori for 10,000 ha 2000 Developed a forest of 5,800 ha (cumulative) and hosted a millennium event 2003 Completed afforestation of 10,000 ha 2015 Demonstrated lumbering in some areas (135 ha) 2017 Started lumbering