South Korea’s energy mix is currently dominated by fossil fuels, which account for approximately 60% of electricity generation as of early 2025. However, the country is undergoing a major transition to Carbon-Free Energy (CFE), with a strategic goal to make 70% of its power generation carbon-free by 2038.
South Korea relies on imports for nearly 98% of its fossil fuel consumption, making it highly vulnerable to global price volatility.
South Korea is aggressively advancing a green hydrogen economy to achieve 2050 carbon neutrality, investing in infrastructure for production, storage, and mobility. Key initiatives include developing Jeju Island as a hub with commercial production, boosting fuel cell vehicles (approx. 40,000 units), and launching major 1GW projects led by Hyundai. While importing roughly 80% of its hydrogen needs, the country is expanding domestic production, with Jeju Island hosting the nation’s first commercial green hydrogen refueling station and aiming for 30 MW capacity.
Hyundai is developing a 1GW green hydrogen project, including Proton Exchange Membrane (PEM) electrolyzer manufacturing, as part of a massive, multi-year investment package. The government is establishing “hydrogen cities” where hydrogen powers buildings and transportation. Around 40,000 hydrogen vehicles are currently in operation, with plans for further expansion.
The government is fostering the sector with, for instance, the world’s first hydrogen-based power bidding market. New regulations include a strict “clean hydrogen standard” of 4kg CO2
equivalent per kg of hydrogen. Despite its advancements, South Korea faces high domestic production costs and relies heavily on imports for its green hydrogen.
Korea National Oil Corporation has located five promising sites for, or occurrences of, natural hydrogen, with investigations ongoing. Korea is simultaneously investing heavily in liquefied hydrogen storage and hydrogen-powered vehicles (FCEVs).
Based on available reports as of early 2026, South Korea has not confirmed the discovery of commercially viable white (natural) hydrogen deposits, but it is actively investigating its potential.