The South Korean government has announced its Korean Green Transformation (K-GX) Strategy, outlining plans to mobilize KRW 1 quadrillion ($746.14 billion) in government funding and climate finance over the 2026-2035 period to accelerate industrial decarbonization, strengthen competitiveness and support sustainable economic growth.
The government will establish a public-private K-GX Council to monitor implementation and coordinate further policy measures throughout the 2026-2035 period. Under the strategy, the government plans to accelerate the transition to low-carbon production processes in five major emissions-intensive industries, including steel.
As part of the strategy, ten signature projects will be implemented in cooperation with the private sector, with planned private investment totaling KRW 220 trillion ($164.11 billion). These projects will focus on clean energy supply chains, industrial decarbonization, transport electrification and the green transformation of residential environments.
300,000 mt hydrogen-based ironmaking facility planned by 2030
In the steel sector, South Korea aims to demonstrate a hydrogen-based ironmaking facility with an annual capacity of 300,000 mt by 2030, with the objective of achieving commercial-scale hydrogen-based ironmaking and strengthening its position in the emerging green steel market.
Among the participating companies, POSCO Holdings presented its plans to establish a decarbonized industrial ecosystem in the steel sector. To support this transition, the government will assist in establishing hydrogen production hubs and develop measures to ensure a stable supply of affordable electricity in line with corporate investment plans.
Renewable energy capacity targeted to reach 100 GW
Meanwhile, South Korea aims to increase its renewable energy capacity to 100 GW by 2030. The government plans to identify suitable locations for solar and wind power projects, reduce renewable electricity generation costs and expand transmission infrastructure. Existing power lines will be upgraded to increase transmission capacity, while direct-current transmission and distribution technologies will also be developed.
The government will additionally support ten strategic green industries, including electric vehicles, batteries, solar and wind power, small modular reactors, power equipment, power semiconductors, heat pumps, hydrogen, and carbon capture, utilization and storage.
Government plans KRW 790 trillion in climate finance
Regarding financing, the government plans to provide KRW 200 trillion ($149.17 billion) in fiscal support and at least KRW 790 trillion ($589.29 billion) in climate finance over the ten-year period. Transition finance will be expanded to support the decarbonization of emissions-intensive industries.
In addition, the government plans to introduce domestic production tax credits for key components and equipment used in solar power, wind power and batteries, alongside regulatory reforms and faster approval procedures for companies developing green technologies.
