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Energy - South Korea

South Korea
  • In South Korea, electricity generation in the Energy market is anticipated to reach 664.76bn kWh in 2025.
  • The country is expected to experience an annual growth rate of 1.19% (CAGR 2025-2029).
  • Furthermore, the overall emission intensity in South Korea is projected to be 460.49gCO2/kWh in 2025.
  • South Korea is increasingly investing in renewable energy technologies, positioning itself as a leader in the transition toward a sustainable energy market.

Definition:

The energy market is a broad term that encompasses all forms of energy, including fossil fuels, renewable sources, and nuclear power. It is a crucial sector of the global economy, as energy is essential for transportation, industry, heating, and electricity generation. The market is highly complex and constantly evolving, with factors such as government policies, technological advances, and environmental concerns affecting supply and demand. The energy market is dominated by a few large companies, but it also includes many smaller players, ranging from independent power producers to energy traders. The market is also subject to significant volatility, as geopolitical events, weather patterns, and other factors can impact prices and supply chains.

Structure:

  • Nuclear
  • Fossil Fuels (Oil, Coal, and Natural Gas)
  • Renewable Energy (Solar, Wind, Marine, Hydropower, Bioenergy, and Geothermal)

Additional information:

The market comprises production that refers to the amount of electricity generated from the chosen source of energy, measured in kWh.

In-Scope
  • Nuclear: operational nuclear plants and reactors
  • Fossil fuels: oil and petroleum products, manufactured gases, natural gas, coal
  • Renewables: solar power, wave and tidal energy, conventional hydropower, onshore and offshore wind turbines, biomass and biofuels, hydrothermal energy
Out-Of-Scope
  • Nuclear: scientific and experimental nuclear and thermonuclear reactors
  • Fossil fuels: oil heaters and oil-fired boilers, coal-to-liquid (CTL) fuels, coal gasification
  • Renewables: building-integrated photovoltaics (BIPV), solar water heating, marine biomass energy, windmills and turbines for nonelectric applications, biochemicals, volcanic and geysers energy
Energy: market data & analysis - Cover

Market Insights report

Energy: market data & analysis
Study Details

    Production

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Emission Intensity

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Nuclear Infrastructure

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update:

    Source: Statista Market Insights

    Analyst Opinion

    The Energy Market in South Korea is experiencing minimal growth, influenced by factors such as the transition to sustainable energy sources, regulatory shifts towards reducing fossil fuel dependency, and the ongoing investment in nuclear power to ensure energy security and stability.

    Customer preferences:
    Consumers in South Korea are increasingly prioritizing sustainable energy solutions, resulting in a growing demand for renewable energy sources such as solar and wind power. This shift is influenced by a heightened awareness of environmental issues among younger generations, who are more inclined to support eco-friendly practices. Additionally, urban dwellers are adopting energy-efficient technologies in their homes, reflecting a lifestyle that values both sustainability and cost-effectiveness. As a result, there is a notable surge in interest for smart home energy management systems that promote reduced consumption and increased energy independence.

    Trends in the market:
    In South Korea, the energy market is experiencing a significant shift towards renewable energy adoption, particularly in solar and wind power sectors. This trend is driven by a younger demographic that values sustainability and actively seeks eco-friendly solutions. Additionally, urban residents are increasingly investing in energy-efficient appliances and smart home technologies, aiming for reduced energy consumption and greater self-sufficiency. As these trends continue to evolve, industry stakeholders, including energy providers and technology firms, must adapt their strategies to meet rising consumer demand for sustainable practices and innovative energy management solutions.

    Local special circumstances:
    In South Korea, the energy market is significantly shaped by the nation's unique geographical landscape, characterized by limited land and high population density, which drives the need for efficient energy solutions. The government’s strong regulatory framework promotes renewable energy adoption through ambitious targets and financial incentives. Culturally, there is a deep-rooted emphasis on technological advancement and environmental stewardship, with consumers favoring smart energy solutions. These factors collectively create a dynamic market environment that prioritizes innovation and sustainability in energy consumption and production.

    Underlying macroeconomic factors:
    The South Korean energy market is influenced by several macroeconomic factors, including global energy prices, domestic economic growth, and government fiscal policies aimed at promoting sustainability. The transition towards renewable energy sources is bolstered by international trends emphasizing carbon reduction and energy independence, which align with South Korea’s own green initiatives. Furthermore, national economic health, reflected in GDP growth and industrial output, impacts energy demand significantly. Robust government investment in energy infrastructure and technology innovation supports the market’s evolution, while external factors like geopolitical tensions and global supply chain dynamics also play critical roles in shaping energy market performance.

    Global Comparison

    Most recent update:

    Source: Statista Market Insights

    Methodology

    Data coverage:

    The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

    Modeling approach:

    Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

    Additional notes:

    The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.

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    Energy: market data & analysis - BackgroundEnergy: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update:

    Source: Statista Market Insights

    Explore more high-quality data on related topic

    Global energy industry - statistics & facts

    As populations grow and low-income countries move towards urbanization, the global demand for energy is continuously increasing. Despite a drop in 2020 due to a reduction in economic activities during the coronavirus pandemic, the global primary energy production has grown by 60 percent since the beginning of the century. China accounts by far for the largest energy production and consumption in the world, as the Eastern country is one of the most populated.
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