- POSCO Holdings plans to develop a decarbonised steel industrial ecosystem
- Government to support hydrogen hubs and affordable industrial electricity
South Korea has introduced its Korean Green Transformation (K-GX) Strategy, aiming to mobilise KRW 1 quadrillion ($746.14 billion) in government funding and climate finance between 2026 and 2035. The initiative is designed to reduce industrial decarbonization, improve the competitiveness of domestic industries and drive sustainable economic development.
As part of the initiative, the government will establish a public-private K-GX Council to monitor implementation and coordinate additional policy measures throughout the ten-year period. Moreover, the strategy will prioritize the transition to low-carbon production processes across five major emissions-intensive industries, including steel.
Additionally, ten flagship projects will be rolled out in partnership with private companies, with planned private-sector investment of KRW 220 trillion ($164.11 billion). The projects will cover clean energy supply chains, industrial emissions reduction, transport electrification and greener residential infrastructure.
Hydrogen-based ironmaking facility targeted by 2030
South Korea plans to demonstrate a hydrogen-based ironmaking facility with an annual capacity of 300,000 tonnes (t) by 2030. The project is expected to advance the development of commercial-scale hydrogen-based steelmaking and help domestic producers establish a stronger presence in the green steel market.
Meanwhile, POSCO Holdings has outlined plans to establish a decarbonized industrial ecosystem for the steel sector. To support these efforts, the government will facilitate the development of hydrogen production hubs and introduce measures to ensure a stable supply of affordable electricity, aligned with companies’ investment plans.
Renewable energy capacity to reach 100 GW
Alongside industrial decarbonization, South Korea aims to expand its renewable energy capacity to 100 GW by 2030. The government plans to identify suitable sites for solar and wind projects, lower renewable power generation costs and expand transmission infrastructure. Furthermore, existing power lines will be upgraded to increase transmission capacity, while direct-current transmission and distribution technologies will be developed to improve the delivery of renewable electricity.
The government will also 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.
South Korea to mobilize KRW 790 trillion in climate finance
To finance the transition, 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. In addition, transition finance will be expanded to help emissions-intensive industries invest in lower-carbon production processes.
The government also intends to introduce domestic production tax credits for key components and equipment used in solar power, wind power and battery manufacturing. Moreover, regulatory reforms and faster approval procedures will be introduced to support companies developing and deploying green technologies.
Note: This article is published as part of a content sharing agreement between SteelOrbis and BigMint.
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