South Korea's Minister of Climate, Energy, and Environment, Kim Joon-hyun, stated on Thursday that the conflict involving Iran represents "a significant turning point for South Korea," accelerating the nation's shift towards renewable energy to reduce its dependence on oil. Minister Kim noted in an interview that "a growing consensus is forming domestically that a fundamental energy transition is necessary." The South Korean government had previously committed to achieving 100 gigawatts of renewable energy capacity by 2030. According to data from the Renewable Energy Research Institute, the country's current total renewable energy capacity stands at 37 gigawatts. Kim stated that South Korea will prioritize the development of wind and solar power to meet its capacity expansion target. Data from the International Energy Agency indicates that in 2025, only about 9% of South Korea's electricity demand will be met by renewable sources, with the majority coming from solar power. "Since wind power requires a considerable amount of time from preparation to actual electricity generation, we will make our best efforts while also treating solar power as the most effective short-term solution," Kim said. When questioned about whether South Korea receives sufficient sunlight for solar power generation, Kim expressed confidence. He pointed out that Seoul has an average annual sunshine duration of 2,148 hours, and provinces like South Jeolla and Jeju Island experience over 100 more hours of sunshine than the capital. He compared this to Germany, stating that South Korea's solar conditions are "significantly better" than those in Europe. Kim acknowledged that South Korea's solar-related industry has significantly shrunk due to China's dominance in the solar module market. However, he affirmed that South Korea possesses "strong technological capabilities" in this field and that the government will ensure subsidies are used to support and protect the domestic solar industry. "By fairly distributing the profits from solar power generation so that they benefit our citizens, we can turn this challenge into an opportunity," he remarked. Reports indicate that in 2024, Chinese solar panels accounted for over 95% of the market share in South Korea, a sharp increase from 38% in 2019. In contrast, the market share of domestically produced solar products in South Korea fell from 50% in 2019 to just 4% in 2024.
**Immediate Concerns** Nevertheless, South Korea still needs to address near-term energy security concerns arising from the Iran conflict. Kim stated that South Korea will postpone the scheduled closure of two coal-fired power plants, originally set for June, by approximately six months. Additionally, a nuclear power plant will be restarted to help reduce natural gas demand. Rising natural gas prices have increased electricity production costs. South Korea has committed to releasing 22 million barrels of oil from its strategic reserves to the International Energy Agency. However, Kim indicated there are no immediate plans to release these stocks, as the situation has not yet had a "direct or significant impact" on supply and demand. According to a 2024 report from Korea's Energy Statistics Information System, South Korea, as Asia's fourth-largest economy, relies on imports for 94% of its energy needs, with nearly 72% of its crude oil sourced from the Middle East. In late March, the government approved a supplementary budget of 26.2 trillion won (approximately $17.6 billion) aimed at alleviating the burden of rising energy prices on households and industries, and also implemented price caps on fuel products. It was reported that to reduce energy demand, South Korea has also implemented an alternate-day parking system for public parking lots, where vehicles belonging to public sector employees are parked on alternating days based on their license plate numbers. Kim mentioned that the current impact of rising energy prices has not yet reached a level requiring an increase in electricity tariffs. He noted that electricity price hikes typically occur about three to six months after increases in oil and gas prices. "That being said, the situation is unpredictable. We will closely monitor the situation in June and July and carefully devise various mechanisms to prevent electricity price increases," he added.
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