**Categories:** International, Energy **Tags:** South Korea, K-GX, energy transition, industry, renewable energy **Excerpt:** Seoul is launching K-GX, a programme providing for nearly 1,000,000 billion won in public and climate financing by 2035, with an additional 220,000 billion expected from the private sector. The plan combines industrial decarbonisation, renewable energy growth and support for ten green industries. **Slug:** coree-du-sud-plan-k-gx-transition-energetique-2035 **Image alt:** A wind farm and electricity infrastructure illustrating South Korea's industrial transition.
South Korea has launched an energy and industrial transformation programme that will mobilise approximately 1,000,000 billion won over 2026–2035. Named K-GX, for Korea-Green Transformation, the strategy aims to reduce heavy industry emissions, accelerate renewable energy deployment and develop new technological activities. The authorities estimate public and climate financing at nearly 1,000,000 billion won, or approximately $745 billion, while an additional 220,000 billion won is expected from the private sector.
This funding places the transition at the heart of South Korea's industrial strategy. The country seeks to maintain the competitiveness of energy-intensive sectors—steel, petrochemicals, cement, semiconductors, displays and refining—while developing growth industries in batteries, solar, wind, hydrogen and small modular reactors.
A strategy combining public expenditure and climate financing
The figure of 1,000,000 billion won aggregates several sources. The government plans approximately 200,000 billion won in budget expenditure and more than 790,000 billion in climate financing mobilised by public and financial institutions. The 220,000 billion won envisaged from the private sector is presented separately. Public and climate financing must therefore be distinguished from the amount businesses might invest additionally.
Implementation will depend on the ability to turn these announcements into loans, guarantees, equity investments and projects actually built. An aggregate funding envelope does not equal expenditure already committed. Projects will need to meet financing criteria, obtain permits, secure equipment and demonstrate profitability or their contribution to climate objectives.
Financial support is intended to reduce initial risks for companies investing in lower-emission processes. Heavy industry cannot always replace equipment quickly: facilities have long lifespans and alternative technologies remain costly or under development. Suitable financing can help accelerate the first commercial units, but its effectiveness will depend on project selection and monitoring results.
100 GW of renewables and a grid to develop
The strategy targets 100 gigawatts of installed renewable capacity by 2030, relying mainly on solar and wind. This development must be accompanied by investment in the electricity grid, because additional generation cannot be integrated without suitable transmission lines, connections and balancing tools.
South Korea's geography and industrial density make grid planning essential. Renewable generation areas do not always match the main consumption centres. Connection delays and acceptance constraints can slow projects. Storage capacity, demand management and regional interconnections are options, but require coordination between the state, local authorities and operators.
The capacity target must not be confused with renewables' actual share of generation. Plants must generate electricity, be connected and meet demand at appropriate times. The 100 GW indicator will therefore need to be complemented by annual generation, the curtailment rate and grid availability.
Decarbonising export industries
The plan targets five high-emission sectors strategic to exports: steel, petrochemicals, cement, semiconductors, displays and refining feature in government announcements. Reduction options include electrification, efficiency improvements, low-carbon hydrogen, material recycling and carbon capture in certain processes.
The pathways differ. Steel can use scrap and hydrogen-based reduction processes, provided competitive electricity and hydrogen are available. Cement production will need to reduce emissions from both heat and the chemical reactions of limestone. Petrochemicals and refining must transform assets designed to process hydrocarbons, requiring considerable investment.
The government also plans to support ten green industries, including batteries, solar panels, wind power and small modular reactors. The strategy thus seeks to make decarbonisation a driver of growth and exports. This ambition will be tested by international competition, component prices and dependence on critical raw materials.
Electrifying transport without neglecting infrastructure
K-GX aims for electric or hydrogen vehicles to account for more than 70% of new vehicle registrations in 2035. This objective requires development of charging points, hydrogen stations, electricity capacity and battery supply chains. Purchase costs, model availability and consumer confidence will influence adoption.
Hydrogen use must target areas where direct electrification is difficult, because producing and distributing this fuel involves energy losses and dedicated infrastructure. Battery electric vehicles can be more efficient in several light-duty uses, while hydrogen is being studied for heavy vehicles and certain industrial uses. The plan will need to avoid supporting competing solutions without prioritising uses and costs.
Execution: the programme's real test
The priorities are ambitious, but their financial and technical coherence remains to be demonstrated. Renewable investment will need to progress alongside the grid; climate financing will need to support projects delivering measurable emissions reductions; and businesses will need to commit their own capital. The announced private share will depend on regulatory stability and actual demand for low-carbon products.
Monitoring indicators should include amounts actually disbursed, commissioned capacity, verified emissions reductions, renewables' share of generation, jobs created and the competitiveness of the sectors concerned. The programme can make the transition an industrial driver, but success will depend less on the overall announced amount than on the ability to turn financing into productive assets and measurable climate gains.