Key facts
- South Korea plans to invest up to $747 billion by 2035 in renewable energy, EV uptake, and industry decarbonization.
- The K-GX Strategy aims for 100 GW of renewable energy capacity by 2030.
- New vehicle sales are targeted to be 70% electric or hydrogen by 2035.
- The plan seeks to reduce emissions in steel, cement, semiconductors, petrochemicals, and refining sectors.
- South Korea aims to strengthen energy security amid global crises.
- Renewable energy could save $4.7 billion in fossil fuel import costs annually.
South Korea has announced a significant investment plan, dubbed the Korea Green Transformation (K-GX) Strategy, aiming to commit up to one quadrillion Korean won, equivalent to $747 billion, by 2035. This initiative is designed to address pressing energy security concerns and adapt to tightening global carbon regulations.
Senior officials presented the strategy on Wednesday, outlining key targets including the development of 100 gigawatts (GW) of renewable energy capacity by 2030. Furthermore, the country aims for electric and hydrogen vehicles to constitute over 70% of new vehicle sales by 2035. The plan also emphasizes reducing emissions in major industrial sectors such as steel, cement manufacturing, semiconductors, petrochemicals, and refining.
President Lee Jae Myung stated at a news conference, as reported by Reuters, "We must move away from the practice of chasing others and become architects and leaders of the green market ourselves." This signals a shift towards proactive leadership in the green energy transition.
The push for renewables is also driven by the need to enhance energy security, particularly in light of recent geopolitical events in the Middle East that disrupted oil and LNG supplies. As a major importer of oil and gas, South Korea is diversifying its sourcing but recognizes that a substantial leap into homegrown renewable energy is crucial to mitigate dependence on geopolitical turbulence and supply shocks.
Research from the clean energy think tank Ember indicates that South Korea's current wind and solar capacity could save $4.7 billion in fossil fuel import costs this year alone, especially with energy commodity prices spiking. Further analysis by Ember and Global Energy Monitor showed that annual fossil fuel imports could reach $133 billion based on early-June 2026 spot prices. The projected 100-GW renewables target by 2030 could potentially avoid an additional $12 billion in annual fossil fuel import costs.