"Energy Policy Must Consider Reality," Experts and Companies Speak with One Voice

Korea Industrial Federation Urges Adjusting Pace of Carbon Neutrality by 2050

The 2022 Anti-Nuclear Presidential Election Coalition is holding a rally near Seoul City Hall on the 14th, urging the halt of nuclear power plant construction. Photo by Moon Honam munonam@

[Asia Economy Reporter Choi Dae-yeol] There have been calls for the new government to more closely examine and reflect the current realities when formulating energy policies. While the direction of reducing emissions to achieve carbon neutrality is correct, the side effects of rapid transition are considerable, and confusion is arising in the field as frontline workers are not properly informed about renewable energy supply measures or the background.

On the 31st, participants at the "Energy Design Forum for Strengthening Global Competitiveness in the Era of Transition," hosted by the Korea Industrial Federation Forum together with the Korean Society of Energy Design, the Korean Society of Digital Policy, and the Korean Society of Systems Engineering, reviewed the current status and future outlook of energy policy. Jeong Manki, chairman of the Korea Industrial Federation Forum, said, "Although we have declared carbon neutrality by 2050 and finalized a plan to reduce carbon emissions by 40% by 2030 compared to 2018, achieving these goals is not easy considering the reality of our industry. The new government needs to review whether these targets are manageable for our economy and, if necessary, flexibly adjust the goals to simultaneously pursue carbon reduction and industrial growth."

Hong Il-pyo, chairman of the People Power Party’s Special Committee on Sustainability, emphasized in his keynote speech that "energy policy must prioritize supply stability above all else," adding, "We must protect the environment amid climate change while supplying economically viable energy, considering energy industry innovation, development, and employment expansion together."

Regarding nuclear power, which President-elect Yoon Seok-yeol emphasized in his campaign pledges, Hong expressed a willingness to take a progressive approach. He stated, "A realistic energy mix that ensures energy supply stability while fulfilling carbon reduction obligations internationally, including the abandonment of the nuclear phase-out policy, is necessary. Nuclear power and renewable energy should play complementary roles, together accounting for about 75% of total energy."

Hong also stressed that fossil fuels such as coal and oil, which currently account for over 40%, should not be completely phased out but maintained at around 20%. He said, "We must develop carbon capture and storage technologies to the fullest and maintain a 20% share for the time being. This is indispensable not only for energy supply stability and economic feasibility but also considering cases like the US and EU, which are revising their complete coal phase-out policies."

There was also a viewpoint that energy transition should be seen as an opportunity for South Korea to increase its energy self-sufficiency. Do Kyung-hwan, president of Hynet, said, "For energy resource-poor countries like ours, this can be a golden opportunity for self-reliance, and the answer lies in a new energy combination. Quickly restoring the nuclear ecosystem to produce cheap and abundant electricity and producing green hydrogen from renewable energy sources with relatively low volatility, such as offshore wind power, will significantly increase self-sufficiency."

No Gyu-seong, president of the Korean Society of Energy Design, said, "Nuclear power can produce electricity at half the cost compared to other energy sources. From the perspective of Korea Electric Power Corporation (KEPCO), nuclear power is an inevitable alternative until large-scale investments in renewable energy and the resulting reduction in renewable energy electricity production costs become a reality."

Regarding the hydrogen industry, which was also emphasized by the current government, there was an opinion to selectively focus support targets. Chairman Jeong said, "Considering the domestic characteristic of a strong manufacturing sector, it would be effective to first develop industries that use hydrogen, such as transportation machinery, steelmaking, power generation, and shipping, and then secure competitiveness across the entire industry. Increasing purchase subsidies, resolving regional imbalances in subsidies and charging stations, expanding charging infrastructure, and preparing tax support measures are necessary."

This content was produced with the assistance of AI translation services.