South Korea launches $747B green energy plan

October 12, 2026

South Korea has announced an ambitious 1,000 trillion won ($747 billion) green transformation strategy through 2035, designed to accelerate renewable energy development, reduce industrial carbon emissions, and strengthen the country's position in the global clean technology market.

The initiative, known as K-GX (Korea-Green Transformation), represents a major effort to integrate climate action with economic growth. It focuses on expanding clean energy infrastructure, modernizing carbon-intensive industries, and encouraging investment in next-generation technologies.

South Korea's $747 billion green investment strategy

The K-GX initiative combines public funding, climate finance, and private-sector investment to support the country's transition toward a low-carbon economy.

According to Finance Minister Lee Hyoung-il, the financial framework includes:

• 200 trillion won in government spending to support green transformation projects.
• More than 790 trillion won in climate financing to accelerate decarbonization and clean technology deployment.
• An additional 220 trillion won in planned private-sector investment to encourage business participation.

The government intends to reduce financial uncertainty for businesses investing in emerging low-carbon technologies while creating opportunities for long-term economic development.

President Lee Jae Myung emphasized that South Korea should move beyond adopting technologies developed elsewhere and become a global leader in sustainable innovation.

Renewable energy capacity to reach 100 GW by 2030

One of the central objectives of South Korea's green transition strategy is to significantly increase renewable electricity generation.

The government has established a target of 100 gigawatts (GW) of renewable energy capacity by 2030, supporting efforts to reduce fossil fuel dependence and strengthen national energy security.

The plan prioritizes several strategic technologies, including solar power, wind energy, hydrogen production, advanced batteries, and small modular nuclear reactors (SMRs).

South Korea also intends to commercialize tandem solar cells by 2028. These advanced photovoltaic technologies combine multiple light-absorbing layers to improve energy conversion efficiency compared with conventional solar cells.

Alongside renewable energy expansion, policymakers aim to develop domestic supply chains for essential clean energy equipment and components, reducing reliance on overseas suppliers.

Decarbonizing South Korea's heavy industries

Industrial emissions reduction is another major component of the K-GX strategy.

The government plans to accelerate the transformation of five high-emitting industrial sectors:

1. Steel manufacturing
2. Petrochemicals
3. Oil refining
4. Cement production
5. Semiconductors and display manufacturing

These industries are critical to South Korea's economy but face growing pressure to reduce greenhouse gas emissions as international climate regulations become stricter.

The government will develop sector-specific decarbonization roadmaps to guide emissions reductions and support progress toward its 2035 climate targets.

Green steel and hydrogen technologies

A key ambition is to establish South Korea as a leading producer of low-carbon steel.

The government aims to pioneer the mass production of hydrogen-reduced steel, a technology that uses hydrogen instead of conventional carbon-intensive reducing agents during iron production.

When produced using low-emission hydrogen, this approach has the potential to significantly reduce emissions associated with traditional steelmaking.

South Korea also plans to strengthen research, commercialization, and industrial deployment of hydrogen technologies to support the transition of energy-intensive industries.

Electric and hydrogen vehicles to dominate new car sales by 2035

Transportation electrification will play a major role in South Korea's decarbonization efforts.

Under the K-GX strategy, the government aims for electric and hydrogen-powered vehicles to represent more than 70% of new vehicle sales by 2035.

Achieving this target would substantially change the country's automotive market while supporting domestic manufacturers developing electric mobility technologies.

The strategy also encourages innovation in advanced batteries, power semiconductors, and other technologies essential for electric transportation.

By strengthening domestic production and technological capabilities, South Korea hopes to expand its competitiveness in the rapidly growing global electric vehicle market.

Developing 10 strategic green industries

Beyond reducing emissions, the K-GX initiative seeks to establish new sources of economic growth through investment in 10 emerging green industries.

Among the priority sectors are:

• Electric vehicles and advanced mobility technologies
• Next-generation battery manufacturing
• Solar and wind energy systems
• Hydrogen production and related infrastructure
• Power semiconductors
• Carbon capture technologies
• Small modular nuclear reactors

These industries are expected to support technological innovation, attract private investment, and create opportunities for South Korean businesses in international clean energy markets.

The government also plans to encourage cooperation between research institutions, manufacturers, and investors to accelerate the commercialization of emerging technologies.

Climate finance linked to measurable emissions reductions

To improve the effectiveness of green investments, South Korea intends to evaluate projects receiving climate finance according to their potential to reduce greenhouse gas emissions.

This approach aims to ensure that financial support delivers measurable environmental benefits rather than simply expanding spending on sustainability-related initiatives.

Industry-specific roadmaps will provide additional guidance for companies transitioning toward lower-carbon production processes.

Officials say the strategy responds to several interconnected challenges, including increasing climate risks, concerns over energy security, and stricter international carbon regulations.

By combining climate finance with industrial modernization, South Korea hopes to make decarbonization an engine of economic development.

Government and businesses join forces for green transformation

Private-sector participation is expected to be essential for implementing the K-GX strategy.

SK Group Chairman Chey Tae-won, who leads the private-sector consultative body supporting the initiative, highlighted the importance of government involvement in reducing investment risks.

Businesses have faced uncertainty surrounding the commercial viability of emerging technologies, future market demand, and evolving climate policies.

Through financial support and closer public-private cooperation, the government aims to encourage companies to commit capital to long-term carbon neutrality projects.

This partnership could help accelerate the deployment of clean technologies while strengthening South Korea's industrial competitiveness.

South Korea positions green transformation as an economic opportunity

The K-GX strategy reflects South Korea's broader ambition to make climate action a central pillar of national economic policy.

By targeting 100 GW of renewable energy capacity, expanding electric mobility, supporting hydrogen-based steel production, and investing in advanced clean technologies, the country is seeking to combine emissions reductions with industrial growth.

Successful implementation will depend on sustained financing, technological progress, effective regulation, and cooperation between the government and private businesses.

If the strategy achieves its objectives, South Korea could strengthen its position as a major global supplier of low-carbon technologies while making significant progress toward its 2035 climate goals.

The initiative illustrates how national decarbonization policies can be designed not only to address environmental challenges but also to stimulate innovation, improve energy security, and create new opportunities in the global green economy.