Aimed at driving investment and competitiveness in the manufacture and supply chain development of low-carbon technologies, the K-GX strategy also supports the government policy goal of reaching 100GW of renewable energy generation capacity in South Korea by 2030.

The government has selected 10 green industries in which to strengthen domestic production and enhance national competitiveness in those fields. Presentations were given on each industry, followed by presentations from four major domestic companies participating in those sectors.

The projects’ aims are to enhance self-reliance in clean energy supply chains, decarbonise national industries, electrify all modes of transportation and increase residential-scale adoption of clean energy technologies. 

Public money will be invested over a 10-year period, while private-sector investments totalling KRW220 trillion will be committed to the signature projects. Public money comprises KRW200 trillion in fiscal funds and KRW790 trillion in climate finance, MCEE said.

According to MCEE announcement materials, “bold tax incentives and regulatory improvements will be implemented in parallel” in the early stages of the K-GX strategy’s implementation.

Domestic production tax credits will be introduced for technologies including solar PV, wind and battery storage, leveraging the expansion of climate finance funding. Special regulatory zones and fast-track licensing support will be established for core GX technology companies.

The government recognises that grid constraints have held back a rapid expansion in renewable energy adoption that Korea is otherwise seeing.

The southwestern Honam region, for example, will not be able to offer hosting capacity on transmission and distribution (T&D) networks for new grid-connected energy projects until after 2034.

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