Invest KOREA

According to the World Energy Outlook 2022 released by the International Energy Agency (IEA), Korea is evaluated as a major player in the global solar industry value chain in terms of technology and production capacity (cell and module manufacturing).

According to the Korea Institute of Science and Technology Evaluation (KISTEP, 2021), Korea's technology level in the energy and resource sector in 2020 was 80.2% compared to the country with the highest level of technology (the United States), with a technology gap of 3.7 years.

More specifically, Korea's photovoltaic (PV) technology within the new and renewable energy sector is evaluated to be 90.0% in the high-efficiency solar cell category, and Korean cell and module manufacturers (Hanwha Solutions, Hyundai Energy Solutions, etc.) based on their technology and the domestic market are entering overseas markets by building overseas factories.

Moreover, Korea's wind power technology is 75.0% that of the US, and structural material manufacturers (Unison, CS Wind, etc.) are evaluated to be competitive in building towers and substructures. The industry plans to participate in the domestic market by building large-scale wind farms and strengthen global competitiveness by expanding investment.

The hydrogen industry is building infrastructure to tap into hydrogen such as hydrogen cars and fuel cells, while adding infrastructure for green hydrogen production.

According to the Korea Energy Agency (KEA), new and renewable energy accounted for 8.29% of total power generation in 2021, an increase of 11.4% compared to the previous year. The cumulative installed capacity of new and renewable energy in 2021 was 30.2 GW, up 16.3% compared to the previous year. Solar power accounts for 70.2% and wind power accounts for 5.7% of total facilities (cumulative).

According to the Korea Energy Agency (KEA), the sales volume of the new and renewable energy industry in 2021 amounted to about KRW 29 trillion, an increase of 13.6% year-on-year. Korea's new and renewable energy industry continues to grow: the number of companies in related areas such as renewable energy product manufacturing, construction, power generation, and services was 110,000, up 31.7% year-on-year, and the number of employees reached about 140,000, an increase of 19.4% year-on-year.

The government recently announced the 1st Master Plan for Carbon Neutrality and Green Growth (2023-2042) and announced a detailed plan to achieve the national greenhouse gas reduction targets by 2030. The master plan is Korea's first top-level plan for achieving carbon neutrality and green growth, established according to the Act on Carbon Neutrality and Green Growth enacted in March 2022. The government prepared a rational plan by considering the nation's economic and social conditions and feasibility of fulfilling greenhouse gas reduction targets.

Recent government policies to promote new and renewable energy are as follows
New government's energy policy directions (July 2022) ▲ Renewable energy policy improvement plan (November 2022) ▲ 10th Master Plan for Electricity Supply (January 2023)