South Korea Unveils $747 Billion Green Transformation Plan

South Korea unveils a $747 billion green transformation strategy through 2035 covering renewable energy, industry and clean technology.

By News National Editorial Team

South Korea has unveiled a major long-term energy and industrial transformation programme that aims to invest around 1,000 trillion won (about US$745–747 billion) by 2035 to accelerate decarbonisation, expand clean energy and strengthen the country's position in emerging green industries.

The government announced the Korea Green Transformation, known as K-GX, on October 7 as part of a broader strategy to combine climate policy with industrial competitiveness and economic growth. The programme includes government fiscal support and policy financing, while the private sector is expected to make additional investments.

The government plans to provide about 1,000 trillion won in combined fiscal and policy-financing support through 2035. Private companies are expected to contribute another 220 trillion won, according to South Korean government-linked reporting.

Renewable energy expansion

A central part of the strategy is a rapid increase in renewable-energy capacity.

The plan targets 100 gigawatts of renewable-energy capacity by 2030, alongside efforts to expand electricity infrastructure and develop cleaner energy supply chains. The government also wants electric and hydrogen-powered vehicles to account for more than 70% of new vehicle sales by 2035.

South Korea is seeking to reduce emissions from major industrial sectors while protecting the competitiveness of industries that remain important to its export economy.

Steel and heavy industry

Steel, petrochemicals, cement and semiconductor manufacturing are among the sectors expected to receive particular attention.

One example is POSCO's plan to develop a hydrogen-based steelmaking demonstration facility in Pohang. The company has announced plans for a 300,000-tonne-per-year HyREX demonstration facility by 2028, linking hydrogen supply, low-carbon steel production and industrial infrastructure.

Hydrogen-based steelmaking is being explored as a way to reduce dependence on coal in the production process, although commercial-scale deployment remains technically and economically challenging.

Green technology as an economic strategy

The South Korean government is presenting K-GX not simply as an environmental programme but as an industrial strategy.

The plan includes support for batteries, hydrogen technology, green steel, renewable energy and small modular reactors. Officials also want to develop domestic clean-energy supply chains and commercialise newer solar technologies.

President Lee Jae Myung has described the transformation as an opportunity for South Korea to become a leader in emerging green markets rather than simply responding to international climate regulations.

Challenges ahead

The scale of the programme means implementation will be as important as the headline investment figure.

South Korea must secure reliable low-carbon electricity, develop transmission infrastructure, build competitive hydrogen supply chains and reduce the cost of low-carbon industrial technologies.

The country also faces competition from China, Europe, Japan and the United States in clean-energy manufacturing and advanced industrial technology.

If successfully implemented, K-GX could therefore influence not only South Korea's emissions profile but also the country's position in global clean-technology supply chains.

News National Verification

Confirmed: South Korea announced the K-GX strategy and a 1,000-trillion-won government support framework through 2035.

Additional confirmed target: Private-sector investment of approximately 220 trillion won.

Key areas: Renewable energy, green steel, batteries, hydrogen, electric vehicles and industrial decarbonisation.

Sources: South Korean government/Yonhap reporting; Reuters; Korea Economic Daily; POSCO information.

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