Ministry of Trade, Industry and Energy

Donghae, Samcheok and Pohang designated as hydrogen-specialized complexes to power Korea’s hydrogen industry

Prime Minister Han Duck-soo of the Republic of Korea chaired the seventh Hydrogen Economy Committee meeting today in Seoul with the participation of government officials and industry, academia, and research experts. Committee discussions centered on three agenda items including the designation of hydrogen-specialized complexes and support measures, liquid hydrogen carrier super gap strategy, and the Hydrogen City 2.0 Strategy. First, Donghae and Samcheok of Gangwon Province and Pohang of North Gyeongsang Province are to be designated as Korea’s first hydrogen-specialized complexes to promote the integration of hydrogen companies and nurture the regions into a central hub to lead the growth of the domestic hydrogen industry. Companies in the Seoul capital area deciding to move into these specialized complexes will be provided catered incentives such as a preferential subsidy rate (up 2 percent), permission to enter private contracts for industrial land, as well as support for buyer-supplier joint R&D, demonstration and pilot distribution projects, and manpower training. Second, the Government will prepare to meet the rise in global hydrogen transport demand, while actively supporting the early securing of large-scale liquid hydrogen carrier technology to gain super gap competitiveness and preoccupy new markets.  To this end, efforts will go into developing foundational MPE (materials, parts, equipment) technologies for liquid hydrogen storage systems, hydrogen-powered propulsion, and related core materials and equipment, with plans to build the demonstration vessel by 2027, verify technology and safety through land and sea navigation by 2030, and realize large-scale carrier commercialization through scale-ups by 2040. Third, based on the accumulated experience from hydrogen pilot cities (2020–2024), the new Hydrogen City 2.0 Strategy will aim to establish a diverse hydrogen ecosystem across the hydrogen-specialized cities. The cities will be an upgraded version through hydrogen trams, hydrogen trucks, and other hydrogen transportation infrastructure with a greater scope of eco-friendly hydrogen production facilities. Hydrogen fuel cells will be installed in various different types of buildings including those for industrial complexes, cultural centers, and silver towns. Prime Minister Han stated in his opening address that hydrogen is a carbon-free energy source recognized as a key means for carbon reduction at the United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28), as well as a promising future industry estimated to reach trillions of dollars in global market size by 2050. He underscored that the Korean government will swiftly push the policies passed by the Committee to establish a comprehensive hydrogen industrial ecosystem and concentrate on policy endeavors to lead the global hydrogen economy.   date2024-11-01

Korea aiming for “Nuclear Renaissance,” commemorates Shin Hanul 1 & 2 final completion

Minister for Trade, Industry and Energy Dukgeun Ahn of the Republic of Korea attended the final completion ceremony of Shin Hanul units 1 and 2 and the groundbreaking ceremony of Shin Hanul units 3 and 4 today held in Uljin County of North Gyeongsang Province with the participation of local residents, nuclear industry personnel, nuclear energy majoring university students, and Korea Nuclear Meister High School students.   Also attending the ceremonies were a number of key industry figures including the Korea Hydro and Nuclear Power (KHNP) President to congratulate the successful completion of Shin Hanul 1 and 2, as well as the groundbreaking of the Shin Hanul 3 and 4 following the recently granted construction permit.   As a twin unit, Shin Hanul 1 and 2 each began commercial operation in December 2022 and April 2024, respectively. They are Korea’s seventh case of APR1400 technology application.   Their final completion is meaningful in that Shin Hanul 1 and 2 can help secure a more stable power source to respond to the sharply rising power demand brought on by the rise of high-tech industries. The amount of power needed to operate a single cutting-edge semiconductor production facility requires 1–1.5GW of electrical power, so by this calculation, Shin Hanul units 1 and 2 are producing enough power to run 2–3 semiconductor plants.   Moreover, the completion of the two units signal another step towards achieving carbon neutrality. As nuclear energy is a carbon-free energy source, carbon dioxide emissions can be reduced by roughly 17.9 million metric tons per annum on the premise that Shin Hanul units 1 and 2 are to replace coal-fired power generation.   Lastly, the activation of Shin Hanul 1 and 2 is expected to considerably help improve Korea’s trade balance and reduce energy imports in view of the nation’s given conditions. Should the two units replace LNG power generation, more than 1.37 million tons of LNG imports will be trimmed, generating approximately KRW 1.5 trillion worth of import substitution effect.   Meanwhile, the Yoon administration further made the decision to resume construction of Shin Hanul units 3 and 4 under the new regime’s energy policy directions announced in July 2022 with an aim to normalize the then flailing nuclear energy industry hit by the previous phase-out policy.   In tandem with the Yoon administration’s decision, the Korean government continued to increase the supply of work across the nuclear industry to restore the ecosystem. Through collaboration with policy funding institutions, the Government has been providing loans and guarantees to troubled SMEs and middle-market companies to heighten liquidity in the wake of the nuclear phase-out.   As a result, the size and scale of the nuclear energy industry and related business investments have turned to an expansion since the current administration’s taking office, laying down the groundwork for Korea’s nuclear power industry to make new leaps.   The completion of the Shin Hanul units 1 and 2 and the groundbreaking of units 3 and 4 are considered a decisive step towards realizing the full normalization of Korea’s nuclear energy ecosystem, alongside KHNP’s recent selection as preferred bidder for the Czech Republic’s new nuclear reactor project. Building on this momentum, the Korean government plans to push the following four chief policy tasks to develop the nation’s nuclear industry into a global powerhouse.   First, the Government will establish a support system to enhance the domestic ecosystem’s competitiveness by designing a predictable and sustainable mid-to-long term nuclear energy policy, while promptly moving forward legislative procedures for the special act on nuclear industry assistance to maintain consistent support. It also plans to announc date2024-10-30

Energy Policy Dep. Minister meets Petronas’ Gas and Maritime Business CEO

The Republic of Korea’s Deputy Minister for Energy Policy Lee Ho-hyeon met with Petronas’ Gas and Maritime Business CEO Datuk Adif Zulkifli today in Seoul to discuss measures for energy cooperation. date2024-10-25

Korea and Malaysia discuss energy cooperation in LNG, hydrogen, and CCS

The Republic of Korea’s Deputy Minister for Energy Policy Lee Ho-hyeon met with Petronas’ Gas and Maritime Business CEO Datuk Adif Zulkifli today in Seoul to discuss measures for energy cooperation. A Malaysian state-owned energy giant, Petronas is currently engaged in joint projects with Korean firms across diverse areas including liquefied natural gas (LNG), hydrogen, and carbon capture and storage (CCS). Today’s talks were held on the occasion of Petronas executives’ business trip to Korea. Sharing the view that stable securing of resources is crucial amid intensifying global energy supply chain uncertainties, both sides agreed to actively cooperate to this end. In addition to the LNG supply contract between Petronas and Korean firms like Korea Gas Corporation (KOGAS), Deputy Minister Lee remarked that the two countries are also taking part in an overseas gas field project and expressed anticipation for continued LNG cooperation going forward. Moreover, he asked for interest and support towards the green hydrogen and ammonia project presently ongoing in Sarawak with the participation of Korea National Oil Corporation (KNOC) and Samsung E&A. Lastly, the deputy minister noted the Shepherd CCS Project in progress between Korean firms and Petronas for transporting carbon dioxide from Korea to Malaysia for storage and requested Petronas’ strong support for the collaboration, noting their governments’ ongoing discussions on prospects of entering a bilateral memorandum of understanding (MOU) to assist cooperation in CCS areas.   date2024-10-25

Minister Ahn meets Kazakhstan’s Minister for Energy

Trade, Industry and Energy Minister Dukgeun Ahn of the Republic of Korea met Kazakhstan’s Minister for Energy Almasadam Sätqaliev on October 22 at the Government Complex Sejong for talks on boosting bilateral energy cooperation outcomes and follow-up measures. date2024-10-24

Korea and Kazakhstan discuss implementation measures for June summit outcomes

Trade, Industry and Energy Minister Dukgeun Ahn of the Republic of Korea met Kazakhstan’s Minister for Energy Almasadam Sätqaliev today at the Government Complex Sejong for talks on bilateral energy cooperation.  The first follow-up to the Korea-Kazakhstan summit held this June in Astana, today’s energy ministers’ meeting served as an opportunity for the two countries to assess summit outcomes in energy areas and discuss swift implementation measures.  The ministers shared the view that the recent summit has acted as a groundbreaking momentum for strengthening Korea-Kazakhstan energy exchanges. Based on the memorandum of understanding (MOU) inked by the two countries for electrical power industry cooperation, they discussed steps to boost Kazakhstan’s power policy collaboration with Korea via projects on improving environmental facilities, building combined cycle power plants (CCPPs), and increasing the utilization of renewable energy.  Moreover, both sides are aiming to implement summit outcome follow-ups in non-energy areas as well, such as establishing a critical minerals supply chain partnership and expanding official development assistance (ODA) in industry and energy sectors.  Requesting for greater participation of Korean companies in Kazakh energy plant projects going forward, Minister Ahn also asked the Kazakh government’s interest and support towards the global diffusion of the Carbon Free Energy (CFE) Initiative launched by the Korean government to achieve carbon neutrality through the utilization of diverse CFE sources.   date2024-10-22

Korea to serve as Steering Group member for Climate Club

The Ministry of Trade, Industry and Energy (MOTIE) announced on October 18 that Korea has been appointed to serve in the Steering Group for the Climate Club, a multilateral consultative body launched under the objective of accelerating the effective implementation of the Paris Agreement and carbon neutrality in the industry sector.  It was decided at the time of launch in December 2023 that a Steering Group will be formed when the Climate Club body reaches 40 members or more. Accordingly, with the number of members amounting to 40 as of August 2024, seven members were appointed to serve as the Steering Group, consisting of Australia, Egypt, the EU, Indonesia, Korea, Türkiye, and the UK. While leading the efforts for decarbonization in the industry sector, which takes up 30 percent of the entire global carbon emissions, the Climate Club is also taking the initiative in setting the norms for relevant issues such as low-carbon steel definition, interoperability considerations for emissions calculation, and low-carbon product transaction standards. During the first Steering Group meeting held on October 18, members discussed carbon leakage issues and Climate Club management measures going forward.   date2024-10-21

Korea bolsters global LNG supply cooperation network to stabilize energy supply

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea is making effort to reinforce liquefied natural gas (LNG) supply chain cooperation with other countries in response to volatility risks in the global energy market with aim to stabilize the domestic natural gas supply. First, through the Korea-Singapore LNG memorandum of understanding (MOU) signed between MOTIE and Singapore’s Ministry of Trade and Industry (MTI) on the margins of the Korea-Singapore summit (October 8), the two countries plan to secure supply flexibility via LNG swaps capitalizing on their discrepant summer and winter supply patterns and raise price negotiability through joint purchases. As Korea is the world’s third largest LNG importer and Singapore is a global trading hub with its world-leading infrastructure and professional talent, the two countries’ bilateral cooperation is anticipated to create significant synergy. Second, Korea is pushing LNG cooperation with Japan as well. On the occasion of the LNG Producer-Consumer Conference 2024 (PCC) held on October 6 in Hiroshima, MOTIE and Japan’s Ministry of Economy, Trade and Industry (METI) agreed to kick LNG cooperation into high gear. Both countries’ governments, Korea Gas Corporation (KOGAS), and JERA will work together to monitor the global supply situation, strengthen information exchanges, make joint purchases, and roll out an LNG swap pilot project. Based on these endeavors, they intend to forge agreements going forward to bolster intergovernmental and corporate cooperation so that the two countries can secure stable LNG supplies during global supply chain uncertainties. As of 2023, Korea and Japan are the world’s third and second largest LNG importers, respectively. Based on geographic proximity, the two countries’ collaboration is meaningful in that they can enhance LNG supply flexibility and supply chain resilience even in times of global energy crises. Third, another outcome of the LNG PCC 2024 was that an Early Alert Mechanism (EAM) pilot project should be launched with the participation of major LNG producers like Australia, Canada, and the U.S. and importers like the EU, Japan, and Korea. The EAM is a natural gas supply chain crisis sharing system for swift information spreading and joint response against accidents that may potentially damage natural gas field facilities and disrupt the natural gas supply chain. Not only that, but each country’s LNG storage volume, LNG terminal usage rate, weather, and other basic industrial information are to be shared within permissible range of disclosure. The Korean government plans to take part in the EAM on a regular basis to prepare for potential risks by monitoring and analyzing provided information, while also forecasting accidents and identifying market anxiety factors in advance to help stabilize the domestic natural gas supply.   date2024-10-15

Korea and Philippines agree to stronger supply chain and nuclear energy cooperation

The Ministry of Trade, Industry and Energy (MOTIE) and Korea Hydro & Nuclear Power (KHNP) reached a new milestone with the Philippines today for cooperation in supply chain and nuclear energy with the Filipino Department of Trade and Industry (DTI), Department of Environment and Natural Resources (DENR), and the Department of Energy (DOE) on the margins of Korean President Yoon Suk Yeol’s state visit to the Philippines for a bilateral summit. First, MOTIE entered into a memorandum of understanding (MOU) for supply chain in critical raw materials with the Philippines, the world’s second largest nickel producer. The MOU is expected to help the two countries build a mutually beneficial supply chain and take joint response against sudden supply chain disruptions amid the ongoing U.S.-China competition and global economic fragmentation. KHNP sealed an MOU with the Philippines’ Department of Energy for cooperation on the feasibility study for resuming construction of the Bataan nuclear power plant, which has been put on pause in 1986. They aim to launch feasibility investigations in terms of assessing the safety of continuing the Bataan project and its economic value. On the heels of the MOU signing ceremony, the two countries’ economic groups organized the Korea-Philippines Business Forum with the participation of roughly 300 business leaders of both sides, where they inked a total of 13 additional MOUs between economic groups and companies in areas like nuclear reactors, energy, construction, infrastructure, aircraft maintenance, defense, agriculture, and retail. In nuclear reactors and energy, three MOUs were signed for cooperation on nuclear energy technology and gas-fired combined cycle power plant (CCPP) projects. Korea’s major plant company and the Philippines’ largest independent power producer (IPP) entered into two MOUs, fueling anticipation for collaboration over all energy sectors going forward. In line with the numerous large-scale construction and infrastructure projects recently pushed by the Filipino government, four MOUs were signed in construction and infrastructure areas such as manpower and information exchange as well as smart city. Based on these MOUs, Korean businesses are looking forward to enhanced chances of winning more projects put out by the Philippines. Five MOUs were forged in aircraft maintenance, defense, agriculture, and retail, which has helped establish stable grounds for cooperation in not only manufacturing but in all industries including service and food, while also contributing to boosting Korean businesses’ exports. Meanwhile, the Federation of Korean Industries (KFI) and the Philippines Chamber of Commerce and Industry (PCCI) sealed an MOU to spur bilateral economic cooperation and widen the scope of information exchange, which is anticipated to further catalyze exchanges and cooperation between the two countries’ economic groups. MOTIE plans to actively support the MOUs closed between businesses and economic groups today on the sidelines of the Korea-Philippines Summit to ensure they translate into tangible outcomes.   date2024-10-07

Korea makes official launch of CFE Global Working Group

The Ministry of Trade, Industry and Energy (MOTIE) of the Republic of Korea announced on October 6 that the Carbon-Free Energy (CFE) Initiative officially launched its global working group (“CFE Global Working Group”) on October 3. Moreover, Korea will be serving as chair of the Clean Energy Ministerial (CEM) in 2025. At the 15th Clean Energy Ministerial (CEM) and the G20 Energy Ministerial held through October 1–4 in Brazil, the Korean delegation highlighted the need to harness various carbon-free energy sources. At CEM, it announced the official launch of the CFE Global Working Group and convened a kickoff meeting.  The CFE Global Working Group is a consultative body for discussions on CFE implementation standards and utilization measures with the participation of Korea, Japan, the United Arab Emirates (UAE), the Czech Republic, and the International Energy Agency (IEA). Going forward, it is expected that the scope of participation will keep expanding. At the CFE Global Working Group kickoff meeting, MOTIE Minister Dukgeun Ahn emphasized via a video message how Korea has been laying the groundwork for consensus building with various countries over the use of diverse carbon-free energy sources, sharing plans to continue discussions through the CFE Global Working Group. Head of the Clean Energy Ministerial Secretariat Jean-François Gagné also expressed strong agreement to the need for utilizing all carbon-free energy sources, voicing support for the CFE Initiative’s role in the international community. First proposed by Korean President Yoon Suk Yeol during the United Nations General Assembly meeting in September 2023, the CFE Initiative has thus far won the support of a total of 10 countries and international organizations. The United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP28) resolution (December 2023) and the IEA 2024 Ministerial Meeting (February 2024) joint communique both reaffirm the need to utilize technology-neutral carbon-free energy sources.  In view of member countries’ support for Korea’s chairmanship of next year’s CEM, the international community’s shared understanding for the CFE initiative is anticipated to widen further in the future.   date2024-10-07