Energy

Korea’s energy sector is characterised by the dominance of fossil fuels, which in 2018 accounted for 85% of total primary energy supply (TPES), a strong dependence on energy imports at 84% of TPES, and the dominance of industrial energy use at 55% of total final consumption, the highest share among IEA countries. In 2018, Korea had the lowest share of energy from renewable sources in energy supply among all IEA countries.

The Korean government is committed to advance the country’s energy transition by increasing the share of renewable electricity to 20% by 2030 and to 30-35% by 2040, to gradually phase-out coal and nuclear from the energy mix while significantly improving energy efficiency, and by fostering the country’s nascent hydrogen industry. Under the Paris Agreement, Korea is committed to limit its emissions to 536 million tonnes carbon dioxide equivalent (Mt CO2-eq) in 2030; in 2018, emissions were 709 Mt CO2-eq.

Reaching these ambitious targets will require Korea to substantially enhance decarbonisation efforts across all energy sectors, address regulatory and institutional barriers, introduce flexible market designs, and make use of the country’s advanced technologies and innovative capacity. The government’s announcement of a Green New Deal in July 2020 as part of its post Covid‑19 recovery package is a significant step towards accelerating Korea’s energy transition.