South Korea Green New Deal

South Korea Green New Deal
Name	South Korea Green New Deal
Date announced	2020
Country	South Korea
Proponents	Moon Jae-in, Kim Eun-hye, Ministry of Trade, Industry and Energy (South Korea), Ministry of Environment (South Korea)
Budget	₩240 trillion (proposal)
Status	National strategy

South Korea Green New Deal The South Korea Green New Deal is a national initiative announced in 2020 to accelerate renewable energy deployment, decarbonize industrial sectors, and transform infrastructure in South Korea. Conceived during the administration of Moon Jae-in, it was presented alongside a broader Korean New Deal framework and framed as a response to climate change, post-COVID-19 pandemic recovery, and global competition in clean technology.

Background and Rationale

The policy emerged amid rising domestic and international pressure following the Paris Agreement and scientific assessments by the Intergovernmental Panel on Climate Change and International Energy Agency. South Korea faced criticism for high emissions from the Korea Electric Power Corporation, heavy reliance on coal-fired power stations such as Dangjin Power Station, and industrial emissions from conglomerates like Hyundai Motor Company and POSCO. The deal referenced models from the Green New Deal debate and policy packages in the European Green Deal and responses by countries such as Germany, Denmark, and China on renewable manufacturing. Domestic advocacy came from NGOs including Greenpeace Korea and Korean Federation for Environmental Movements, while labor inputs came via the Korean Confederation of Trade Unions and Federation of Korean Trade Unions.

Policy Goals and Components

Stated goals included carbon neutrality by 2050, job creation, and industrial transformation. The plan proposed investments in solar power and wind power capacity, expansion of battery and hydrogen economy industries, and retrofitting of buildings in metropolitan areas like Seoul and Busan. Components targeted sectors including transportation (electrification with firms such as Kia Motors), energy (decommissioning of older thermal power stations), and digital infrastructure with projects overlapping with Digital New Deal initiatives such as 5G deployment with SK Telecom and KT Corporation. The package included training programs linked to institutions like Korea Advanced Institute of Science and Technology and Seoul National University to upskill workers for green jobs.

Implementation and Funding

Implementation involved coordination among ministries including the Ministry of Trade, Industry and Energy (South Korea), Ministry of Environment (South Korea), and Ministry of Economy and Finance (South Korea), as well as public enterprises such as Korea Electric Power Corporation and Korea Development Bank. Funding mechanisms combined state budgeting, green bonds issued by entities like Korea Finance Corporation, and private investment from chaebol affiliates including Samsung SDI and LG Chem. International finance and cooperation referenced multilateral institutions such as the Asian Development Bank, World Bank, and bilateral agreements with partners including European Union members and United States. Regulatory measures referenced amendments to laws administered by the National Assembly (South Korea) and coordination with regional governments like Gyeonggi Province.

Key Projects and Initiatives

Major projects included large-scale offshore wind farms proposed near Jeju Island and coastal zones, solar farms in reclaimed areas near Incheon, and pilot hydrogen production facilities linked to ports such as Ulsan. Urban projects included retrofitting public housing in Seongnam and metropolitan greenbelt reforestation coordinated with agencies like the Korea Forest Service. Industrial initiatives targeted cathode material supply chains for batteries involving firms such as POSCO Energy and research hubs in partnership with the Electronics and Telecommunications Research Institute and Korea Institute of Energy Research. Transport initiatives included electric bus fleets in cities like Daegu and electrification of municipal fleets coordinated with local governments including Gwangju. Innovation programs involved startups supported by Small and Medium Business Administration (South Korea) and accelerators linked to Korea Investment Corporation.

Stakeholder Responses and Criticism

Responses ranged from endorsement by environmental NGOs such as Friends of the Earth allies and academic bodies like the Korean Council for Reconciliation and Cooperation to skepticism from conservative parties including the People Power Party (South Korea). Business groups such as the Korea Chamber of Commerce and Industry raised concerns about transition costs for manufacturing exporters like Samsung Electronics and LG Electronics. Labor unions debated job-security guarantees with the Ministry of Employment and Labor (South Korea), and local governments such as North Jeolla Province voiced worries over regional equity. Critics questioned reliance on public funding, the pace of coal phase-out affecting facilities like Samhwa Power Plant, and potential supply-chain constraints for critical minerals sourced from countries like Democratic Republic of the Congo and Australia.

Outcomes and Impact Assessments

Assessments by domestic research centers such as the Korea Environment Institute and international bodies like the Organisation for Economic Co-operation and Development tracked progress on emissions trajectories, renewable capacity additions, and job metrics. Early indicators showed growth in battery manufacturing exports and increased installations of photovoltaic systems, while debates continued over coal plant retirements and grid integration challenges faced by Korea Electric Power Corporation. Evaluations referenced climate targets aligned with the Nationally Determined Contribution under the United Nations Framework Convention on Climate Change and compared outcomes to peer economies such as Japan and Germany. Continued monitoring involved academic partners including Yonsei University and Korea University, fiscal oversight by the Board of Audit and Inspection (South Korea), and policy reviews in the National Assembly (South Korea).

Category:Energy policy of South Korea Category:Climate change in South Korea