Korea to accelerate renewable energy expansion to 100GW by 2030
A briefing on the Korean Green Transformation (K-GX) strategy is underway in Seoul, Wednesday, attended by President Lee Jae Myung, government officials and business representatives. Yonhap
Korea will speed up efforts to increase its renewable energy capacity to at least 100 gigawatts by 2030, with 1 quadrillion won ($746.99 billion) in government-led investment planned over the next decade.
The 100-gigawatt goal is a key part of the Korean Green Transformation (K-GX), a strategy unveiled Wednesday that is aimed at achieving carbon neutrality and economic growth at the same time.
The strategy seeks to make Korea one of the world’s top three green manufacturing powers by developing industries such as hydrogen-reduction steelmaking, next-generation solar cells and all-solid-state batteries.
“The green transition is a sure strategy for the future that will secure international competitiveness while protecting people’s lives and livelihoods from the climate crisis,” President Lee Jae Myung said during a public briefing on the plan.
The briefing was attended by about 80 people, including senior government officials, Korea Chamber of Commerce and Industry Chairman Chey Tae-won, representatives of Hanwha Qcells, POSCO Holdings, LG Electronics and Samsung Electronics, industry groups and experts.
The president said the green transition would strengthen Korea’s competitiveness while protecting people from the effects of climate change. “We must break away from the practice of being followers and become designers and leaders of the green market," Lee said.
The strategy was drawn up through discussions by a joint public-private K-GX task force involving government agencies and major economic and industry organizations.
One major project calls for Korea to become the first country to commercially produce steel using hydrogen-reduction technology by 2030.
The government plans to develop technology capable of producing 300,000 tons of steel using the process by then and expand production to 2.5 million tons between 2031 and 2036.
It eventually seeks to produce steel entirely through hydrogen-reduction technology by 2050.
The technology uses hydrogen instead of coal to remove oxygen from iron ore, reducing greenhouse gas emissions.
The government also plans to link policies across different industries.
It aims for electric and hydrogen vehicles to account for more than 70 percent of new vehicle sales by 2035 and is considering additional subsidies for electric vehicles (EVs) made with low-carbon steel.
EV subsidies could also vary by region depending on renewable energy generation, in line with the 100-gigawatt renewable energy target.
The government is also seeking to increase its share of the global EV market from the current 3.8 percent, ranking eighth, to the third-highest by 2035.
Measures include an overhaul of the subsidy system, a new electricity fuel subsidy, greater support for drivers switching from internal combustion engine vehicles and a battery leasing program.
In batteries, the government plans to commercialize high-performance all-solid-state batteries by 2027 and lower-cost sodium-ion batteries by 2030.
For solar power, Korea aims to become the first country to commercialize and mass-produce high-efficiency tandem solar cells by 2028.
The government hopes domestic companies will take the largest share of the global next-generation tandem cell market by 2035.
The plan calls for expanding the power grid to accommodate more renewable energy, including the construction of high-voltage direct-current transmission lines and replacement of existing transmission cables with higher-capacity ones.
To finance the transition, 200 trillion won of the 1 quadrillion won package will come from fiscal spending, while 790 trillion won will be provided through climate financing by five state-run financial institutions, with additional funds to be mobilized.
More than half of the climate financing will be allocated outside the Seoul metropolitan area, while at least 70 percent will be directed to small and medium-sized enterprises and mid-sized companies.
The government plans to issue its first green government bonds in 2028 and expand tax credits for domestically produced key components and equipment used in solar power, wind power and secondary batteries.
It aims to foster 30 potential climate-tech unicorns by 2030 and 10 unicorn companies by 2035.