South Korea unveils 1,000 trillion won green transition plan to 2035
Version 2: Newer coverage adds a government goal of becoming one of the world's three green manufacturing powers and regional green hubs, the roughly 220 trillion won in company investment plans is now reported by two outlets, and fresh editorials press for execution while cautioning against moving too fast; the core funding figures and targets are unchanged.
In short
South Korea announced a “Korean-style Green Transition” (K-GX) strategy on Oct 7, pledging about 1,000 trillion won over ten years to 2035 — 200 trillion won in fiscal support and more than 790 trillion won in climate finance through five policy institutions. Targets include electric and hydrogen vehicles at 70% of new car sales by 2035 and 100GW of renewable capacity by 2030, with decarbonisation of steel, petrochemicals, cement, semiconductors and refining. Environmental groups called the plan support-heavy and said regulation must be strengthened, while editorials pressed for clear execution without moving too fast.
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The government announced the “Korean-style Green Transition” (K-GX) strategy at a public report meeting at the Korea Chamber of Commerce and Industry in Seoul on Oct 7, presided over by President Lee Jae-myung. Kyunghyang Shinmun reported the plan runs ten years to 2035 and combines about 200 trillion won in fiscal support with more than 790 trillion won in climate finance from five policy financial institutions — Korea Development Bank, Industrial Bank of Korea, Korea Eximbank, the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation. A green bond is to be issued for the first time in 2028, with details set by the first half of next year. [ 2 , 3 , 4 , 7 , 10 , 12 ]
In transport, electric and hydrogen vehicles are to reach more than 50% of new cars by 2030 and more than 70% by 2035, with fiscal, tax and financial support by segment — public fleets, taxis and rental cars — and a redesign of electric vehicle subsidies that accounts for local renewable generation. The depreciation deduction limit for new electric and hydrogen corporate vehicles rises from 8 million won to 10 million won a year. [ 2 , 3 , 9 ]
Five high-emission sectors — steel, petrochemicals, cement, semiconductors and displays, and refining — are to convert to low-carbon processes. Steel is to use hydrogen reduction instead of coal, with a 300,000-tonne demonstration by 2030 and the stated goal of the world's first commercial mass production; petrochemicals and refining are to pursue electric naphtha cracking and low-carbon fuels; cement is to develop multi-component blended cement; and semiconductor and display makers are to replace process gases with low global-warming-potential alternatives. Ten green industries are to be fostered with a domestic production tax credit, and climate tech startups are to receive packages of up to 10 billion won. [ 2 , 3 , 6 ]
On energy, the target is 100GW of renewable capacity by 2030, with solar and wind sites to be identified and the grid expanded. Jeju aims to switch all new vehicles on the island to electric by 2035, and Naju in South Jeolla is to become an energy-specialised city with Korea Electric Power Corp. and the Korea Institute of Energy Technology. Seoul Economic Daily said the plan centres on “five poles and three special zones” as regional green transition hubs. [ 2 , 3 , 6 , 10 ]
President Lee said the transition is “a certain future strategy that secures international competitiveness while protecting people's lives and livelihoods from the climate crisis,” and that South Korea should move beyond follower practices to become “the designer and leader of the green market.” Dong-A Ilbo reported companies announced investment plans of about 220 trillion won, a figure also cited by the Seoul Economic Daily editorial, and four companies — Hanwha Q Cells, POSCO Holdings, LG Electronics and Samsung Electronics — presented signature projects. [ 4 , 6 , 7 , 10 ]
Environmental and climate groups criticised the plan as support-oriented. Plan 1.5 said “K-GX is a support-only policy” and that stronger regulation, especially normalising carbon allowance prices and converting to paid allocation, is a prerequisite; Kim Byung-kwon of the Green Transition Institute said the instruments remain insufficient and that a greening strategy is missing from the three mega-projects announced in June. Kyunghyang Shinmun's editorial urged actual emissions cuts, while Seoul Economic Daily warned against speeding and recalled a previous green growth plan that spent 110 trillion won with poor results. [ 2 , 8 , 9 , 10 ]
Why it matters
The plan commits state money and policy lending to sectors that underpin South Korean exports — steel, petrochemicals, refining, semiconductors, batteries and solar — and sets hard targets for the car fleet and power supply, which could reshape industrial investment and trade competitiveness. Because the government frames it as both climate policy and a growth engine, its follow-through will be watched by foreign buyers and regulators pricing carbon at the border. Editorials warn that the funding-heavy design leaves the emissions-reduction outcome dependent on execution.
Key facts
- The government will mobilise about 1,000 trillion won over ten years to 2035, made up of 200 trillion won in fiscal support and more than 790 trillion won in climate finance from five policy financial institutions. [ 1 , 2 , 3 , 4 , 5 , 6 , 8 , 9 , 12 ]
- Electric and hydrogen vehicles are to reach more than 50% of new cars by 2030 and more than 70% by 2035. [ 2 , 3 , 9 ]
- Renewable energy capacity is targeted at 100GW by 2030, with solar and wind sites to be identified and the power grid expanded. [ 2 , 3 , 6 ]
- Steel, petrochemicals, cement, semiconductors and displays, and refining are the five high-emission sectors singled out for low-carbon process conversion. [ 2 , 3 , 6 , 10 ]
- A 300,000-tonne hydrogen-based steelmaking demonstration is planned by 2030, with mass production as the stated goal. [ 2 , 3 , 6 , 10 ]
- A green bond is to be issued for the first time in 2028, with details to be prepared by the first half of next year. [ 2 , 10 ]
- Companies announced investment plans of about 220 trillion won, according to two outlets. [ 4 , 10 ]
- Editorials from Kyunghyang Shinmun and Seoul Economic Daily called for actual emissions reductions and warned against excessive speed and unclear definitions of the 1,000 trillion won. [ 8 , 9 , 10 ]
Confirmed by several sources
- The K-GX strategy was announced at a public report meeting at the Korea Chamber of Commerce and Industry in Seoul on Oct 7, with President Lee Jae-myung attending or presiding. [ 2 , 3 , 4 , 7 , 10 , 12 ]
- The plan covers ten years to 2035 and combines 200 trillion won in fiscal support with more than 790 trillion won in climate finance. [ 2 , 3 , 4 , 5 , 6 , 8 , 9 , 12 ]
- The transport target is electric and hydrogen vehicles at more than 70% of new cars by 2035, after more than 50% by 2030. [ 2 , 3 , 9 ]
- Renewable capacity of 100GW by 2030 is a stated goal. [ 2 , 3 , 6 ]
- Five high-emission sectors — steel, petrochemicals, cement, semiconductors and displays, and refining — are to convert to low-carbon processes. [ 2 , 3 , 6 , 10 ]
- Companies announced investment plans of about 220 trillion won, cited by two outlets. [ 4 , 10 ]
Still unclear
- Whether the roughly 1,000 trillion won total includes the approximately 220 trillion won in private investment plans that companies announced. The company plans are listed separately from the fiscal and climate finance figures, and no document says whether they are counted in the headline total.
- One outlet's company roundup refers to a 10 trillion won government green transition investment, which does not match the 1,000 trillion won figure reported elsewhere. Single-source figure that conflicts with the funding scale given by other outlets.
- What regulatory measures, if any, will accompany the funding, including whether carbon allowance prices will be normalised and allocation converted to paid. Environmental groups demanded this, but the documents do not say whether the government accepted it, and the criticism appears in one outlet.
- The details of the planned 2028 green bond. Reported by a single outlet, which says specifics will be prepared by the first half of next year.
- A Seoul Shinmun report says an “advance subsidy” is planned for loss-making companies under the green transition. Stated only in a headline and short summary, with no detail on eligibility, size or conditions.
- The regional structure described as “five poles and three special zones” for green transition hubs. Appears only in the Seoul Economic Daily editorial and is not detailed elsewhere.
What local media are saying
Timeline, local time
- Kukmin Ilbo reports a ten-year, 1,000 trillion won support plan for electric vehicles, batteries and solar under a “K-green transition”. [ 1 ]
- Kyunghyang Shinmun publishes the strategy details, including fiscal and climate finance totals, transport targets and criticism from climate groups. [ 2 ]
- ZDNet Korea reports the K-GX strategy and its technology and industry targets. [ 3 ]
- Dong-A Ilbo reports the plan and President Lee's remarks at the Korea Chamber of Commerce and Industry. [ 4 ]
- Seoul Shinmun reports more than 1,000 trillion won over ten years as a new growth engine. [ 5 ]
- Maeil Business reports the plan alongside company project items, and separately quotes President Lee on advanced-industry competitiveness. [ 6 , 7 ]
- Kyunghyang Shinmun publishes an editorial urging the 1,000 trillion won programme to deliver actual emissions reductions. [ 8 ]
- Kyunghyang Shinmun reports the fiscal and climate finance support, the 70% electric and hydrogen vehicle target and climate groups' call for stronger regulation. [ 9 ]
- Seoul Economic Daily publishes an editorial calling for execution without over-speed and noting about 220 trillion won in company investment plans. [ 10 ]
- Seoul Shinmun reports a plan for advance subsidies to loss-making companies. [ 11 ]
- Chosun Ilbo reports the ten-year, 1,000 trillion won green industry plan. [ 12 ]