Newsticker Korea (June & July 2025)

Energy Policy and Energy Industry Information

1. A Fresh Start for Korea’s Energy Policy: Lee Administration Plans New Ministry and Accelerated Expansion of Renewables

Since President Lee Jae-myung took office on June 4, 2025, a clear set of priorities has emerged in Seoul: the energy transition is to be accelerated and given a new institutional foundation. Plans are underway to establish an independent Ministry of Climate and Energy (MCE). It would bring together the energy division of the Ministry of Trade, Industry and Energy (MOTIE) with the climate-related responsibilities of the Ministry of Environment. This would, for the first time, consolidate responsibility for decarbonization, grid expansion, and the energy sector at cabinet level. A corresponding draft amendment to the Government Organization Act is scheduled to be submitted to parliament in September; if passed, the new ministry could begin operations as early as January 1, 2026. As head of MOTIE, the president has appointed Kim Jung-kwan, CEO of Doosan Enerbility.

In terms of substance, the administration is pursuing a massive expansion of renewable energy. The goal is to increase renewables’ share of the electricity mix from around 10% today to 40% by 2035. The West Coast Energy Highway is intended to serve as an “electricity highway” for this capacity: by 2030, a high-voltage direct current (HVDC) transmission line is planned to transport up to 20 GW of offshore wind power from the wind-rich southwestern coast to the industrial regions around Seoul; by 2040, a U-shaped extension along the entire peninsula is envisioned. At the same time, under the so-called “solar and wind dividend,” the government plans to distribute future revenues from renewable energy projects to local communities in order to increase local acceptance. This will be complemented by investments in large-scale energy storage, digital substations, and smart-meter rollouts. The currently approved 33 reactors are to remain in operation.

Sources:
Electimes, 04.06.2025, https://www.electimes.com/news/articleView.html?idxno=355991 [KOR];
Electimes, 03.07.2025, https://www.electimes.com/news/articleView.html?idxno=357453 [KOR];
Energydaily, 06.07.2025, http://www.energydaily.co.kr/news/articleView.html?idxno=157692 [KOR]