South Korea unveils US$747 billion energy transition plan through 2035
The country is targeting 100 gigawatts of renewable energy capacity by 2030
The South Korean government presented a 1,000 trillion won (US$747 billion) energy transition and decarbonisation strategy, known as K-GX, on October 7. The plan aims to bolster renewable power generation, revolutionise heavy industry, and stimulate economic growth. Finance Minister Lee Hyoung-il announced that the initiative includes 200 trillion won in fiscal spending, over 790 trillion won in climate finance, and an additional 220 trillion won in private-sector investment.
President Lee Jae Myung urged South Korea to assume a leading role in the global green economy, asserting that the nation must transition from following others to becoming pioneers of the green market. The government targets 100 gigawatts of renewable energy capacity by 2030 and supports sectors such as green steel, batteries, solar power, wind energy, hydrogen, and small modular reactors.
It sets a goal for electric and hydrogen-powered vehicles to constitute more than 70% of new vehicle sales by 2035. The strategy also aims to transform five high-emitting industries—steel, petrochemicals, refining, cement, and semiconductors—while promoting the development of ten green industries, including electric vehicles, power semiconductors, and carbon capture technologies.
South Korea seeks to dominate the global green steel market by becoming the first country to mass-produce hydrogen-reduced steel and foster next-generation industries such as advanced batteries and small modular reactors. The government also intends to commercialise tandem solar cells by 2028 and establish domestic supply chains for essential clean-energy technologies.
The Climate Ministry launched the initiative to tackle climate risks, enhance energy security, and comply with increasingly stringent global carbon regulations, transforming carbon-neutrality efforts into a fresh source of economic expansion. Sector-specific decarbonisation roadmaps will be created to aid South Korea in meeting its 2035 emissions targets.
SK Group Chairman Chey Tae-won, who chairs the private-sector consultative body backing the initiative, highlighted the government's commitment to sharing investment risks with the private sector, which has been reluctant to invest long-term in carbon-neutrality projects due to uncertainties surrounding technology, markets, and policy.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
