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.
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 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.
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.
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.
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 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“.
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 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.
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 | Engagement Intensity | ||
|---|---|---|---|---|
| C- | SK E&S | 11 | Energy | Asia |
| D+ | Korea Electric Power Corporation (KEPCO) | 27 | Utilities | Asia |
| C+ | LG Chem | 20 | Chemicals | Asia |
| C- | SK Hynix | 8 | Information Technology | Asia |
| D | SK Inc. | 15 | All Sectors | Asia |
| D+ | POSCO | 25 | Metals & Mining | Asia |
| D+ | Lotte Chemical | 8 | Chemicals | Asia |
| D+ | Samsung Electronics | 11 | Information Technology | Asia |
| D+ | SK Innovation Co | 9 | Energy | Asia |
