South Korea plans around KRW 1,000 trillion in green transition support over 2026–2035 through a combination of fiscal funding and climate finance. The government presented its Korean Green Transformation (K-GX) strategy in Seoul on 7 October 2026.
The package comprises KRW 200 trillion in fiscal funding and at least KRW 790 trillion in climate finance. Private companies also plan KRW 220 trillion of investment through 10 K-GX signature projects.
Hydrogen is among the 10 priority industries identified in the government’s K-GX strategy. The other sectors are electric vehicles, batteries, solar power, wind power, small modular reactors, power equipment, power semiconductors, heat pumps and carbon capture, utilisation and storage.
In steelmaking, a 300,000-tonne hydrogen-reduction demonstration is planned by 2030. Government support will include hydrogen production facilities, alongside work on arrangements to supply stable, low-cost electricity conditional on corporate investment.
The strategy targets 100GW of renewable capacity by 2030. It calls for identifying solar and wind development sites, reducing generation costs and upgrading existing power lines with higher-capacity conductors. Direct-current transmission and distribution will also be promoted to connect renewable generation with consumers.
Electrification measures cover ports and ships as well as rail, buses, motorcycles and construction machinery. HD Korea Shipbuilding & Offshore Engineering plans a production base for electrified vessels in Ulsan. The company is targeting 2030 for the development of coastal electric-propulsion vessels and ocean-going ships incorporating fuel cells.
Electric and hydrogen vehicles are intended to account for at least 70% of new vehicles by 2035. Electric-vehicle subsidies would also be revised to reflect regional renewable energy production.
Other industrial measures include electric naphtha-cracking technology, lower-carbon cement and replacement gases with lower global warming potential for semiconductor and display manufacturing. The government also plans domestic production tax credits for key solar, wind and battery components and equipment.
Policy finance will prioritise regional allocation and smaller businesses, with at least 50% directed to regions and at least 70% to small and medium-sized enterprises and mid-sized companies. The government plans to establish the institutional framework and detailed arrangements for green sovereign bonds in the first half of 2027.
