H. Yoo
Research expert covering South Korea
Fossil fuels in South Korea - Statistics & Facts
Despite the urgent need to transition to renewable energy, fossil fuels still hold a tight grip on South Korea’s major industries. Indeed, more than 80 percent of South Korea's primary energy supply comes from petroleum, coal, and liquefied natural gas (LNG). Much of this is supplied from overseas. The country’s overseas dependence for energy has stood at over 90 percent for years. With such a high reliance on imports, the country is vulnerable to changes in global oil and gas prices. In particular, the Middle East has become an increasingly important source of energy supply for South Korea amid geopolitical uncertainties, with Saudi Arabia becoming the top country of origin for imported crude oil.
Oil and gas in South Korea
South Korea has some of the highest refining capacities in Asia, allowing it to process various crude oil types into numerous products, including gasoline, diesel, and jet fuel. This and the storage and transfer of liquified natural gas have played key roles in the development of South Korea's major industries. The country is the third-largest importer of liquified natural gas in the world, and it has a strong domestic shipbuilding industry supporting the transport of LNG. Much of this is due to the development of local technology by the state-owned enterprise Korea Gas Technology Corporation (KOGAS), allowing for LNG storage capacity to rival that of other major players in the market.Fossil fuel phase-out
The environmental impact of fossil fuels has become harder to ignore. As such, South Korea has expressed determination in recent years to phase out industries such as coal mining as a crucial part of achieving net-zero emissions by 2050. Despite this goal, the shift toward renewable energy has been slow. While imports of coal have decreased, imports of petrol have increased to meet the nation’s growing energy demand.Future of South Korea’s energy policy
The main alternatives to traditional fossil fuels are nuclear and hydrogen power, which are neither completely renewable nor emission-free, but cleaner than fossil fuels. Issues regarding power storage and the cost of installation, among other barriers, have made it difficult for renewables to make up more than just a small sector of primary energy supply for now. Although green hydrogen power exists, the current infrastructure cannot yet provide a steady flow of energy for widespread use. Given these trends, South Korea’s reliance on fossil fuels is likely to stay in the near future.
