The South Korean society is facing the reality of climate crisis in forms of repeated heatwaves and heavy rainfall every year that cause the loss of life and property. Building a sustainable growth foundation is the key mission of our time, considering that climate crisis is no longer a future threat but an immediate challenge. Against the crisis, the Lee Jae Myung administration has proposed an energy transition initiative centered on renewable energy as its core national policy vision. This is not merely a shift in energy sources but a grand strategy to innovate the economic structure and transform the paradigm of national growth.

The government plans to significantly expand renewable energy capacity from 35.1 GW in 2025 to over 78 GW by 2030 and phase out coal-fired power generation by 2040 to bring about fundamental changes in the energy system. To this end, it will develop large-scale offshore wind farms and dedicated ports. It will also actively promote the dissemination of agricultural solar power, floating solar power, and industrial complex solar power to accelerate the pace of adoption. Furthermore, the government aims to institutionalize a mutually beneficial model where the benefits of energy transition directly accrue to citizens through the Sunlight and Wind Pension system and the creation of energy-self-sufficient villages.

The Lee Jae Myung administration defines renewable energy as more than just a power source, but as a future growth engine. Just as the Gyeongbu Expressway led the growth of the industrialization era, the administration plans to build an expressway for future growth with AI and energy as its two pillars. The Energy Highway, which will begin along the west coast in the 2030s and expand across the entire Korean Peninsula by the 2040s, will serve as the backbone of an intelligent power grid connecting dispersed renewable energy sources nationwide.

The goal is to systematically nurture climate tech industries such as solar power, wind power, and energy storage systems (ESS), and develop them into export industries to create a new growth engine for the South Korean economy. Additionally, RE 100 industrial complexes will be established to help companies engage in climate trade more competitively, and these complexes will also serve as the key sources for the localization and technological development of major carbon-neutral industries such as solar, wind, and batteries. The initiative aims to position South Korea as a global leader in both traditional manufacturing industries (i.e., semiconductors and automobiles) and carbon-neutral industries.

The global solar power industry is experiencing explosive growth, with new installations expected to reach nearly 700 GW by 2025. However, underlying this growth is a structural issue of oversupply. In 2025, production capacity exceeded twice the expected power demand, resulting in the drop of module prices by 67% since 2022, and this low-price trend is expected to continue for the foreseeable future.

Amid this global crisis, countries are strengthening regulations to protect their domestic industries, and the US's strong import restrictions present both a crisis and an opportunity for South Korea. The South Korean solar power industry has limitations in that its upstream processes, such as wafers and polysilicon, are weak. However, US restrictions on products from China and Southeast Asia act as an opportunity for South Korean products, which are subject to relatively low tariffs. Nevertheless, considering the long-term impact of the Trump administration's policy to reduce support for renewable energy, diversifying export destinations is of utmost importance. The government should actively encourage the use of domestically produced products by strengthening product certification systems, providing manufacturing tax credits, and improving public procurement standards to revitalize the solar power industry and ensure energy security. In particular, it is essential to internalize vulnerable supply chains to minimize risks and secure South Korea's strategic position within the restructuring global supply chain.

The South Korean wind turbine market showed quantitative growth in 2024, with domestically produced turbines accounting for 79.3% of new installations. However, in terms of quality, there is a clear technological gap with the global market. While offshore wind turbines of 10 MW or more are widely used around the world, the average capacity of new turbines in South Korea is only 4.74 MW. However, the country's manufacturing technology for wind turbine components other than turbines is considered to be at a world-class level.

Additionally, while the number of power generation companies has increased, the manufacturing base for materials, parts, and equipment remains stagnant. Complex permitting procedures, low public acceptance, and grid connection limitations are chronic issues hindering growth. Fortunately, the government has established the legal framework by passing the Special Act on Offshore Wind Power, which includes government-led site development and streamlined permitting procedures. The key now is to strengthen manufacturing competitiveness based on the legal foundation. The urgent task is to ensure the sustainability of the overall wind power industry ecosystem by introducing bold government support measures.

The new South Korean government's renewable energy policy is a national transformation strategy that goes beyond a simple energy transition to achieve both climate crisis response and future economic growth. This is by no means an easy path, and each industry faces its own challenges.

The power solar industry is striving to turn geopolitical variables such as US trade regulations, into opportunities amid a global supply glut, while also facing the task of internalizing its vulnerable supply chain and securing cutting-edge technology. The wind power industry must leverage the opportunity presented by the passage of special legislation to raise its manufacturing competitiveness to global levels and secure social acceptance in order to achieve stable growth.

Ultimately, the success of these two core industries depends on long-term and consistent policy support. Only when the government pursues policies without wavering under a clear vision and the industry responds with bold investment and technological innovation will renewable energy become a shield that protects South Korea from the climate crisis and a powerful sword that leads the future economy. This is not a choice, but an essential journey toward a sustainable South Korea.