Numerous policies in South Korea are relevant to its energy transition from fossil fuels to renewables.
Energy Transition Targets
In November 2021 at the 26th Conference of Parties (COP26), the South Korean government announced a target to phase out all coal power generation by 2050. In October 2021, South Korea also joined the Global Methane Pledge, an international voluntary initiative to cut methane emissions by at least 30% by 2030, compared to 2020 levels.
10th Basic Electricity Supply and Demand Plan
The 10th Basic Electricity Supply and Demand Plan has been in discussion since December 2021, with the purpose of implementing the upward revision of the 2030 NDC GHG emissions reduction target and the 2050 Carbon Neutrality Scenario. The revised Plan is expected to outline the ambition of reducing coal power generation, conversion to LNG power generation, expanding renewable energy, and the inclusion carbon-free power sources such as hydrogen and ammonia in the energy mix to achieve the 2030 emissions reduction target.
Hydrogen Economy Revitalization Roadmap
In January 2019, the South Korean government announced the Hydrogen Economy Revitalization Roadmap, with the aim to vitalize an economical and stable hydrogen production and supply system, as well as support the development of hydrogen vehicles and fuel cells. In November 2021, the government announced the 1st Basic Plan of Hydrogen Economy Implementation, or the ‘Hydrogen Economy Roadmap 2.0’. The Roadmap 2.0 lays out several hydrogen strategies in more detail, such as leading domestic and overseas production of green and blue hydrogen, building hydrogen logistics, pipeline and charging infrastructure, and expanding hydrogen power generation. The South Korean government has planned to announce the Hydrogen and Ammonia Power Generation Roadmap in early 2022, but it has not been finalized yet.
2050 Carbon Neutrality Scenario
The2050 Carbon Neutrality Scenario, finalized in October 2021, presents two energy mix scenarios for achieving carbon neutrality by 2050. Plan A suggests a complete phase-out of all thermal power generation, transition to electric and hydrogen vehicles, production of green hydrogen, and increase of renewable energy percentage to 70.8%. Meanwhile, Plan B suggests maintenance of some LNG power plants with CCUS, usage of environment-friendly fuel for ICE vehicles, production of blue and gray hydrogen, and increase of renewable energy percentage to 60.9%. See the 2050 Carbon Neutrality Scenario tracker page for further details on industry positions regarding this policy.The2050 Carbon Neutrality Scenario, finalized in October 2021, presents two energy mix scenarios for achieving carbon neutrality by 2050. Plan A suggests a complete phase-out of all thermal power generation, transition to electric and hydrogen vehicles, production of green hydrogen, and increase of renewable energy percentage to 70.8%. Meanwhile, Plan B suggests maintenance of some LNG power plants with CCUS, usage of environment-friendly fuel for ICE vehicles, production of blue and gray hydrogen, and increase of renewable energy percentage to 60.9%. See the 2050 Carbon Neutrality Scenario tracker page for further details on industry positions regarding this policy.
Korea Green Taxonomy (K-taxonomy)
Following the announcement of the 2050 Carbon Neutrality Target, the Ministry of Environment (MOE), the Ministry of Trade Industry and Energy (MOTIE), and the Financial Services Commission, began work on a Korean Sustainable Finance Taxonomy (K-taxonomy) The first draft of the K-taxonomy was released for comment in June 2020, and has been through various stages of revision since then. In October 2021, the fourth draft of the K-taxonomy was released for comment, and for the first time included LNG power-generation in the green industry classification. The MOE openly acknowledged the strong voice of industry in the redrafting of the K-taxonomy. A Ministry official was quoted in the Joongang Ilbo as stating that "in the process of gathering industry opinion, there were many voices saying that LNG power generation is necessary, so we reflected this in the new version”. He added that "there are parts of civil society pointing out that we have regressed since the first draft, but the government has no choice but to comprehensively consider various positions."
The fourth draft of the K-taxonomy was finalized in December 2021, and included LNG as a transitional fuel. In April 2022, Yoon Seok-yeol's Presidential Transition Committee announced that it would review the inclusion of nuclear power in the K-Taxonomy by August 2022. In July 2022, the Ministry of Environment formalized a plan to include nuclear power in the K-Taxonomy, and presented a timeline for finalizing the K-Taxonomy by September 2022.
In a 28 July POSCO Newsroom article, POSCO Research Institute (POSRI) supported the decarbonization of the steel industry, stressing its economic and technological feasibility. The company highlighted the need for increased policy measures, including green premiums, as well as investment and government funding in research and development (R&D) to increase the development of breakthrough technologies for decarbonization. In the same article, POSCO Research Institute (POSRI) broadly supported a phaseout of blast furnace steelmaking and the use of coal, while advocating a continued role for fossil gas for the transition period without placing clear conditions on the deployment of CCS or methane abatement measures. POSRI supported an energy transition pathway that includes an increase in renewables and nuclear, but there is some ambiguity regarding the pace and extent of this transition and its alignment with IPCC recommendations.
In a 23 July Business Community Proposal for Establishing Carbon Neutrality and Sustainability Policies, the Federation of Korean Industries (FKI) supported expanding government measures to decarbonize South Korea’s heavy-duty vehicle sector. FKI proposed expanding subsidies and charging infrastructure to promote the replacement of aging construction equipment with electric alternatives, and called for government support for mobile hydrogen refueling stations to accelerate hydrogen mobility adoption. FKI also supported government incentives to reduce emissions in South Korea’s steel industry. However, it was unclear whether FKI supported a full transition of the steel sector in line with IPCC recommendations.
In the same proposal, FKI supported measures to limit the negative biodiversity impacts of large-scale solar installations and emphasized the need for government intervention to expand solar and wind energy in South Korea’s energy mix. FKI noted that the country’s fossil fuel–reliant grid results in a high national average emission factor, placing domestic companies at a disadvantage under global carbon regulations. The proposal called for a full-system transition—across generation, transmission, and consumption—through measures such as expanding solar and wind power, decommissioning old coal plants, refurbishing nuclear facilities, hydrogen co-firing, and deploying electric boilers, heat pumps, EV charging management, and on-site generation.
In a 23 July Business Community Proposal for Establishing Carbon Neutrality and Sustainability Policies submitted to the National Assembly Environment and Labor Committee, the Special Committee on the Climate Crisis, and the National Policy Planning Committee, the Federation of Korean Industries (FKI) highlighted the urgent need to decarbonize South Korea’s power grid. FKI noted that the country’s fossil fuel–reliant grid results in a high national average emission factor, placing domestic companies at a disadvantage under global carbon regulations. The proposal called for a full-system transition—across generation, transmission, and consumption—through measures such as expanding solar and wind power, decommissioning old coal plants, refurbishing nuclear facilities, hydrogen co-firing, and deploying electric boilers, heat pumps, EV charging management, and on-site generation.
In a 3 January New Year’s address in Electimes, the Chairman of the Korea Photovoltaic Industry Association (KOPIA) communicated support for an increase in solar energy in the energy mix. He stated that the solar energy industry is as a key industry for South Korea to achieve carbon neutrality by 2050.
In a 7 January New Year’s address in Today Energy, the vice-president of Korea New and Renewable Energy Association (KNREA) communicated support for the need for government intervention to support a transition toward renewables such as solar, wind, hydro, and geothermal energy.
In an October monthly Iron and Steel Paper, the Korea Iron and Steel Association (KOSA) called on the South Korean government to build renewable energy infrastructure for green steel production.
In a May 21st interview with Financial News, the Chairman of H2KOREA, Moon Jae-do, called for the government to provide financial support and institutional incentives for the ‘hydrogen economy’, without stating the need to decarbonize the hydrogen production method.
As reported by Chosun Biz on the 23rd February, SK E&S appeared to promote hydrogen production based on fossil fuels. The company reportedly plans to build a blue hydrogen production base in Boryeong, and went on to state that the hydrogen industry would have “the effect of revitalizing the real economy", without reference to the need for decarbonizing hydrogen production.
In a 16th February op-ed article in Money Today, the Chairman of H2KOREA, Moon Jae-do, suggested that diverse hydrogen types, including hydrogen produced from fossil fuels, such as gray and blue hydrogen, should be categorized as ‘clean hydrogen’, saying “there should be no way to differentiate and regulate hydrogen according to the production process”.
In his 2023 New Year’s address, released in Energy & Environment News on January 2nd, the Chairman of the Korea New and Renewable Energy Association (KNREA), Lee Koo-young, stated support for a transition to renewable energy, citing that renewable energy would “reduce energy costs while enhancing energy security” in the long run.
In an op-ed article for Herald Biz on December 29th, the Korea Enterprises Federation (KEF) called for reform of renewable energy regulations, such as renewable energy cost and power grid charging standards, stating that the government should “create an environment in which companies can actively respond to carbon neutrality”. KEF also supported an increase in renewables and nuclear in the energy mix of South Korea for energy security.
In an op-ed article for the December 2022 Steel Paper of the Korea Iron and Steel Association, Hyundai Steel called for government policies and public support for offshore wind power, stating that offshore wind power would be an ”eco-friendly energy source for our offsprings” and creating jobs“.
On 16th November, the ElecTimes reported that the CEO of GS Power, a subsidiary of GS Energy, advocated for the use of gas-fired combined cycle combustion turbine plants in the Korean energy mix, without clear conditions on the deployment of CCS or methane abatement measures.
The Head of Industry at the Federation of Korean Industries (FKI) was quoted by MoneyToday in a November 19th article, announcing that FKI was part of a cohort of organizations asking the South Korean government to include nuclear energy as a ‘carbon-free’ power source so that Korean companies could participate in the ‘Carbon-Free 100’ (CF100) initiative over the Renewable Energy (RE100) initiative.
At a Korea-Germany business roundtable on 4th November, POSCO Managing Director Kim Hee requested government support to ‘solve the hydrogen conversion’, but did not specify POSCO’s position on the need to decarbonize hydrogen production.
In a November 7th press release published the day after COP27 started, the Federation of Korean Industries (FKI) appeared to advocate for a ‘re-examination’ of South Korea’s more ambitious 2030 NDC emissions reduction target, which was submitted to COP26 in November 2021. FKI referred to the results of a survey it commissioned among the top 500 manufacturing companies of Korea, in which 48% of respondents said that the feasibility of achieving the 2030 NDC would be ‘low’ or ‘very low’, and 82% of respondents advocated that ‘a re-examination is necessary’.
In a November 7th press release, Federation of Korean Industries (FKI) advocated for a ‘realistic energy mix policy’ that increases the proportion of nuclear energy in South Korea’s energy mix, stressing concerns over the possibility of achieving the country’s 2030 coal phase-down target and the renewable energy increase target.
As reported by Fortune Korea on the 3rd of November, the Chairman of SK Inc., Chey Tae-won, appeared to support the energy transition with an increase in renewables and nuclear to achieve net-zero in Korea, without clear statements regarding the pace and extent of this transition and the corporate’s alignment with IPCC recommendations.
As reported by Newsway on the 3rd of November, the Chairman of the Korea Chamber of Commerce and Industry (KCCI), Chey Tae-won, appeared to support the energy transition with an increase in renewables and nuclear to achieve net-zero in Korea, without clear statements regarding the pace and extent of this transition and the association’s alignment with IPCC recommendations.
In an interview with Maeil Business Newspaper published on October 25th, the General Manager of Foreign Investment Strategy of GS Energy, Song Kyu-ho, stated support for carbon capure and storage (CCS) development, but did not take a clear position on the role of fossil fuels in the energy mix.
In an article by E-daily on September 28th, the Future Technology Strategy Team Leader of KEPCO, Kim Young-joo, advocated for co-firing ammonia, hydrogen and coal in power plants, stating that “carbon dioxide emissions will be reduced by 20%” and the cost of co-firing will cost “lower than other carbon reduction costs.”
9월 28일 <이데일리> 보도에 따르면, 김영주 한국전력공사 미래기술전략팀장은 암모니아, 수소 그리고 석탄을 발전소에서 혼소하는 것을 옹호하면서, “이산화탄소 배출량이 20% 줄어들고” 혼소 발전의 비용이 “탄소 저감 비용보다는 낮다”고 말했습니다.
As reported by Australian Financial Review on the 25th of May, the CEO of Korea Gas Corporation (KOGAS), Chae Hee-bong, advocated for security of energy supply over the IPCC advised pace of energy transition at the World Gas Conference.
On the 26th May, the Vice President of the Korea Independent Power Producers Association (IPPA), Yoo Yeon-baek, appeared to support a transition of the energy mix with exceptions, citing the specific conditions of securing energy supply stability and “reasonable energy mix” for the transition.
On 12th May at the Hyvolution Exhibition and Forum in Paris, the Chairman of the Korea Automobile Manufacturers Association (KAMA), Jung Man-ki, supported increased ‘policy resource’ input to foster the ‘hydrogen economy’, while stating that hydrogen policies should not lead to the regulation of industry.
On the 1st of May, the Korea Economic Daily reported that the Korea Independent Power Producers Association (IPPA) sent a policy proposal on coal-fired power plants to South Korea's Commission on Presidential Transition. IPPA argued that the early retirement of older coal-fired power plants could be accomplished in early stages due to the abolition of nuclear phase-out policy; however, the association argues that newer coal plants should continue to operate. The association also insisted that “enough compensation should be provided to private power producers” if the government would close down coal-fired power plants.
On the 26th of April, the CEO of GS Energy, Huh Yong-soo, stated that small modular reactors (SMR) would be “the most effective means of achieving carbon neutrality”. However, the CEO did not specify how the role of nuclear would lead to a full transition towards a zero-emission energy system.
On the 10th of April, the Korea Petrochemical Industry Association (KPIA) appeared to oppose tariffs on imported crude oil for the Korean petrochemical sector and regulations on urban oil field projects. KPIA announced that it was ‘having practical discussions' with the Ministry of Economy and Finance to request exemptions for tariffs on imported crude oil, and support for easing regulations on urban oil field projects.
In an industry survey and accompanying press release published on 21st March, the Korean Chamber of Commerce and Industry (KCCI) called for the incoming South Korean government to provide ‘full support’ for R&D in carbon-neutral technology. KCCI stated that ‘lack of investment funds’ was the primary barrier to emissions reductions for Korean industry.
On 7th March, Steel & Metal News Korea released an interview with Hyundai Steel Executive Vice President Yong-hee Kim, in which he appeared to accept the necessity of decarbonizing the steel industry through the transition from blast to electric furnaces. VP Kim called for ‘active support’ from government via ‘policies and projects’ to overcome technological barriers and encourage investment in new technologies.
The table below lists the entities found to be most engaged with the policy. InfluenceMap tracks over 400 companies and 200 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.
| Influencemap Performance Band | Organization | Policy Position | Policy Engagement Intensity |
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