IMARC Group has recently released a new research study titled “South Korea Energy Market Size, Share, Trends and Forecast by Type, Application, and Region, 2026-2034” This report offers a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.

South Korea Energy Market Overview

The South Korea energy market size was 603.8 TWh in 2024 and is forecast to grow to 827.7 TWh by 2033, with a CAGR of 3.30% during 2025-2033. This growth is driven by a robust shift towards renewables, expansion in nuclear energy, and adoption of cleaner technologies. Policy reforms, energy security objectives, and decarbonization efforts are pivotal in diversifying the country’s energy mix.

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

South Korea Energy Market Key Takeaways

• Current Market Size: 603.8 TWh in 2024
• CAGR: 3.30%
• Forecast Period: 2025-2033
• South Korea is accelerating its renewable energy transition to reduce fossil fuel dependence and lower emissions.
• Significant government incentives support solar, wind, and emerging hydrogen-based clean energy.
• Nuclear power remains integral, with plans to sustain a 30% share by 2030 and new reactor constructions.
• Infrastructure upgrades like smart grids and energy storage facilitate renewable integration.
• Strong foreign investment in renewable projects exemplifies this trend, including major offshore wind projects.

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Market Growth Factors

South Korea's energy market growth is primarily propelled by a significant shift toward renewable energy, aimed at reducing reliance on fossil fuels and lowering carbon emissions. Solar and wind power benefit from extensive government-backed incentives, while hydrogen energy emerges as an important pillar of clean energy development. Infrastructure improvements, including smart grids and energy storage systems, support the integration of these intermittent renewable sources. Government pledges toward long-term carbon neutrality are influencing utilities and private enterprises to adopt greener alternatives extensively.

In March 2025, a notable investment was announced by Vena Energy, channeling $300 million into the 384MW Yokji Offshore Wind Project. Such investments enhance energy security, promote carbon neutrality, and foster local economic benefits. Similar projects like the 500MW Taean Offshore Wind Project slated for construction reflect ongoing momentum in the sector. These advancements collectively reshape South Korea’s energy investment landscape, manufacturing, research, and international collaborations.

Nuclear energy is also pivotal to the market’s expansion and energy stability objectives. The Ministry of Trade, Industry and Energy allocated KRW150 billion in 2025 to bolster the nuclear industry. The government’s plan to maintain nuclear power's share at 30% of the energy mix by 2030 includes constructing new reactors like Shin Hanul units 3 and 4. Nuclear power offers a reliable and low-emission base-load electricity source, complementing renewables. Investments in workforce development, safety, and restarts of paused projects underline nuclear’s sustained importance in South Korea's overall energy mix.

Market Segmentation

Type Insights:

• Coal: Includes all market aspects related to coal energy production and consumption in South Korea.
• Oil: Covers the segments pertaining to oil-based energy sources and applications.
• Gas: Encompasses natural gas and related gas energy market components.
• Renewables: Incorporates solar, wind, hydrogen, and other renewable energy sources promoted by government incentives.
• Nuclear: Focuses on nuclear energy production, lifecycle, and technology advancements including new construction and exports.

Application Insights:

• Transport: Energy consumption and application in the transportation sector.
• Electric Power: Usage in electricity generation and power supply.
• Agricultural: Energy used within agricultural operations and applications.
• Industrial: Includes energy consumption for industrial processes and manufacturing.
• Others: Covers additional energy applications outside the named segments.

Regional Insights:

• Seoul Capital Area: Major metropolitan region including the capital with significant energy market activity.
• Yeongnam (Southeastern Region): Key southeastern region with substantial energy consumption and development.
• Honam (Southwestern Region): Southwestern region’s energy market characteristics and consumption.
• Hoseo (Central Region): Central region energy market dynamics.
• Others: Additional regions with relevant energy market activities.

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Regional Insights

Yeongnam (Southeastern Region) is a dominant region in the South Korea energy market. Specific market share or CAGR figures by region are not provided in the source. However, the report includes it among the major regional markets alongside Seoul Capital Area, Honam, Hoseo, and others, highlighting its significance in regional energy demand and development.

Recent Developments & News

In March 2025, Recurrent Energy partnered with 3M Korea and local leaders to sign a Carbon Neutrality Agreement at the 2025 Capital Region Investment Roadshow. The collaboration aims to develop a 200MW solar power plant in Naju City to promote decarbonization, job creation, and energy independence. In February 2025, the South Korean government announced plans to build two large nuclear reactors and a small modular reactor by 2038, targeting 70% carbon-free power generation. The plan also includes increasing renewable energy capacity by 7 GW annually and significantly reducing coal power by 2038.

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