South Korea’s offshore wind sector is facing a change in investment conditions as several foreign developers scale back or leave the market. Regulatory delays, higher project costs, and weak profitability have combined to slow progress across multiple developments.
The latest case involved Corio Generation, which completed its withdrawal from the Korean market on 31 March 2026 when all employees of its local branch, including CEO Choi Woo-jin, resigned. The company had announced a KRW 1.3 trillion investment plan in 2023 and was pursuing the 96 MW Dadaepo Offshore Wind Power project near Busan, a 600 MW fixed-bottom project near Maenggol Island in Jindo County, and a 500 MW floating project near Geomundo in Yeosu. It is now seeking buyers for those interests.
Other foreign developers have also stepped back. Equinor was affected after failing to secure a renewable energy certificate contract for the Firefly floating offshore wind project in Ulsan, resulting in a two-year restriction on participation in domestic energy auctions. Equis is reported to be in negotiations to sell the Anma Offshore Wind project to Copenhagen Infrastructure Partners while military consultation issues remain unresolved. Shell has sold its entire stake in the Munmu Wind floating offshore wind project in Ulsan.
Industry sources said offshore wind economics have worsened as inflation raised material and construction costs, interest rates increased financing costs, and supply chain instability added further pressure. They said turbine development costs in Korea rose from about KRW 5 billion per unit seven to eight years ago to at least KRW 8 billion today.
Projects have also faced delays linked to local opposition, military operation zones, shipping lanes, and a complex approval process involving multiple authorities. Some projects have remained in development for more than six years without starting construction.
The Offshore Wind Power Special Act was enacted to simplify approvals and support a government-led site planning system. However, the law will take effect in one year, and its near-term effect on projects already facing permit, local acceptance, and grid connection issues is expected to be limited.
Some local officials said areas vacated by foreign developers could be converted into government-led planned sites. Even so, South Korea’s offshore wind market is now entering a period in which public-led development may need to play a larger role as foreign participation declines.
