South Korea’s government unveiled its Korea Green Transformation (K-GX) strategy on October 7, committing a total of 1,000 trillion won (about $745 billion) through 2035 to decarbonize heavy industry and expand renewable power. The plan, presented at a national briefing at the Korea Chamber of Commerce and Industry by the finance and climate ministries, links carbon neutrality to industrial competitiveness.
The headline figure breaks down into 200 trillion won in fiscal spending and over 790 trillion won in climate and policy finance channeled through the five major policy financial institutions, with the private sector expected to add another 220 trillion won through “K-GX Signature Projects” involving POSCO Holdings, Hanwha Qcells, Samsung Electronics, LG Electronics and SK hynix. The Climate Response Fund expands to 7.6 trillion won next year, and the government will issue green treasury bonds for the first time in 2028.
Core targets: 100 GW of renewable capacity by 2030 (including grid expansion), emissions cuts of 53 to 61 percent from 2018 levels by 2035, and more than 70 percent of new vehicle registrations electric or hydrogen fuel-cell by 2035. Decarbonization covers steel, petrochemicals, cement, refining, semiconductors and displays; hydrogen-based steelmaking is targeted for commercialization by 2037. A new domestic production tax credit will apply to solar, wind and battery components, and a 30 percent carbon cut will be mandated for heavy-duty vehicles by 2030.
President Lee Jae Myung framed the plan as industrial strategy as much as climate policy, arguing Korea must become an architect of the green market rather than chasing others. The context is energy security: Korean refiners and utilities were forced to scramble for alternative crude and LNG supplies when Hormuz cargoes were trapped, and fossil-fuel imports would hit $133 billion annually at early-June spot prices.