IEEFA – Report South Korea’s Economy Risks Missing Out on Global Transition

This report discusses South Korea's current low percentage of renewable energy in its power generation mix compared to global averages, despite a pledge to achieve net-zero emissions by 2050. The report highlights the importance of renewable energy for global competitiveness and the risks faced by industries, such as the semiconductor sector, if South Korea does not catch up with global renewable energy efforts. The report examines how South Korean companies, like SK Hynix, could face challenges in meeting global demands for cleaner energy sources, potentially affecting their market competitiveness. In addition, the report discusses how financial risks to the semiconductor industry are increasing due to upcoming sustainability standards that require disclosure of greenhouse gas emissions. Embracing renewable energy is seen as crucial for South Korea to maintain economic competitiveness, secure future suppliers and customers, and meet increased electricity demand from semiconductor clusters and data centers. The report suggests that tripling renewable energy by 2030 could address these challenges.