South Korea’s journey has placed it at a critical juncture in its energy history, as there are many formidable hurdles ahead for the nation.
Recent years have witnessed profound shifts in global energy dynamics. Major geopolitical flashpoints—such as the Russia-Ukraine conflict, Middle East tensions (notably Israel-Iran), and escalating US-China trade disputes—have weaponized the world’s energy resources. Russia is deploying its natural gas exports as a strategic asset, the Middle East is leveraging oil flows for political clout, and China dominates the global supply of critical minerals, from lithium to rare earths, which are vital for batteries and renewables production.
South Korea’s vulnerability is pronounced. The nation relies on the Middle East for over sixty percent of its crude oil imports and on China for approximately eighty percent of the minerals essential for its battery and clean tech sectors. The South Korean renewable energy sector, meanwhile, lags behind its OECD peers, supplying just 10.5% of total power in 2024, while dependence on imported fossil fuels persists.
Supply Chains: From Efficiency to Resilience
The era of globalization, championed by efficiency-driven supply chains, is giving way to a new paradigm of resilience and redundancy. The COVID-19 pandemic, coupled with protectionist trade policies — like the EU’s Carbon Border Adjustment Mechanism (CBAM) and aggressive US incentives (the Inflation Reduction Act and the Infrastructure Investment and Jobs Act) — has triggered efforts to rebuild supply networks that can withstand political and economic shocks.
For South Korea, this means diversifying energy imports (from the United States, Australia, and Southeast Asia), fast-tracking domestic R&D and manufacturing in key sectors (renewables, batteries, and smart grids), and forging new alliances with strategic partners. National policy now emphasizes “de-risking” — reducing the nation’s reliance on China for critical materials and securing at least 120 days of strategic reserves.
Electrification and the Data Demand Explosion
South Korea is experiencing a rapid surge in electricity demand, driven partly by the rise of data centers and the AI economy. National forecasts suggest that data center electricity consumption will increase by an average of eleven percent annually through 2028. The United States, likewise, anticipates a more than twenty-five percent rise in overall power consumption by 2030 due to similar technological drivers.
This growing demand amplifies the pressure to secure reliable, low-carbon energy sources. Korea is boosting renewables, keeping nuclear power, and investing in hydrogen to decarbonize industry and electricity.
Case Studies: Lessons From the Global Stage
The EU is on a determined path to zero Russian gas dependence, scaling up renewables to cover 42.5% of its energy mix by 2030 and reinvesting in nuclear energy. The United States has declared a national energy emergency, aiming for a 400 GW nuclear capacity and reinforcing its supply chains among allied nations. Japan is diversifying LNG imports, expanding renewables (forty to fifty percent by 2040), and restarting its nuclear reactors.
China, meanwhile, has enacted sweeping energy legislation, setting targets for 1,200 GW of renewables by 2030 and 200 GW of nuclear by 2040—while maintaining a dominant position in global supply chains for critical minerals and clean energy components.
The Energy Trilemma and Korea’s Strategic Response
Central to Korea’s energy strategy is the “energy trilemma”: balancing security, affordability, and sustainability. Policy makers must avoid siloed solutions, instead fostering a technologically neutral, diverse energy mix—leveraging nuclear for baseload reliability, renewables for environmental sustainability, and energy efficiency for economic competitiveness.
Korea is launching major investments in digitalized, distributed, and flexible energy platforms (known as DDD&F: Distributed, Digital, DC, and Flexumer), building modern microgrids, accelerating deployment of battery storage, and constructing “energy highways” for robust transmission.
Toward a Northeast Asian Energy Hub
Looking ahead, South Korea’s ambition is to rise as Northeast Asia’s energy hub. Key mid- and long-term goals include:
- Short Term: Reduce dependence on China below fifty percent for critical minerals, and expand recycling and strategic stockpiles.
- By 2030: Complete the national “energy highway” and strengthen integration of renewables and nuclear.
- By 2040: Build a regional “super-grid” connecting Korea, China, Japan, and Russia, utilizing Arctic Sea routes and fostering international partnerships in clean energy.
Industrial Decarbonization and Technological Leapfrogging
Korean industry’s transition toward high value-added, low-carbon production is central. Investments are focusing on next-generation technologies (semiconductors, AI, advanced batteries), new materials (bio-based, recycled plastics, low-carbon steel), and integrated solutions that span the fields of energy efficiency, carbon capture, hydrogen, and renewables.
Policy innovation—streamlined permitting, regulatory sandboxes, green finance, and retraining the industrial workforce—underpins this transition. Korea is incentivizing green exports, forming RE100 industrial complexes, and accelerating environment, social, and governance (ESG)-driven investment.
Conclusion: Resilience in the Face of Crisis
South Korea’s energy future rests on its ability to pivot from vulnerability to resilience. By pursuing supply diversification, technological leadership, regulatory reform, and international cooperation, the nation can raise its energy self-sufficiency from nineteen percent in 2024 to fifty percent and gain a competitive advantage in the global clean energy race.
The “energy trilemma”—security, affordability, and sustainability—will define Korea’s path forward. With strategic ambition, robust investment, and agile adaptation, South Korea aims not only to weather the energy transition but also to turn a crisis into an opportunity for lasting national vitality.
About the Author: Dr. Chinho Park
Dr. Chinho Park is President and Distinguished Professor at the Korean Institute of Energy Technology (KENTECH). Dr. Park’s lab is centered around designing new materials and devices for clean energy generation and energy storage, with a special focus on green hydrogen production from splitting water and green electricity generation from earth-abundant thin film solar cells. He received his Ph.D. from the University of Florida, his M.S. from Seoul National University and his B.S. from Hanyang University.
Image: Shutterstock/em_concepts
