South Korea's Minister of Climate, Energy and Environment, Kim Sung-hwan, is entering the second year of his tenure leading the climate and energy team. He is credited with establishing a policy foundation through the launch of the integrated climate ministry, which combines climate, environmental, and energy functions.
In this second year, the implementation of policies is expected to face significant challenges. Key tasks include the establishment of the 12th Basic Plan for Electricity Supply and Demand, expansion of renewable energy, and ensuring the supply of electricity and water for semiconductor and artificial intelligence (AI) data centers.
According to government sources, Kim was appointed as Minister of Environment on July 22, 2025, and became the first Minister of Climate, Energy and Environment following a government reorganization on October 1 of the same year. He led the establishment of a system that consolidates climate, environmental, and energy policies under one ministry and transferred the climate response fund organization from the Ministry of Economy and Finance to facilitate the ministry's launch.
Since its inception, the ministry has focused on clarifying the direction of carbon neutrality policies. At the end of last year, it confirmed a national greenhouse gas reduction target (NDC) for 2035, aiming for a 53-61% reduction compared to 2018 levels, and proposed sector-specific reduction strategies, including the expansion of paid emissions allowances in the power sector.
In the energy sector, the ministry set a goal of deploying 100 GW of renewable energy by 2030 and plans to establish a 'Korean Green Transition (K-GX) Strategy' within the year. Efforts are also underway to build energy highways and expand renewable energy systems.
To support three major mega-projects, including semiconductor and AI data centers, the ministry is accelerating the construction of transmission lines and substations and is working to expand the power grid in a timely manner. Various measures are being considered to secure industrial water, including the construction of new dams, raising existing dams, utilizing surplus water resources, and supplying recycled wastewater.
The government is pursuing an energy mix that considers both the expansion of renewable energy and stable power supply. The 12th Basic Plan for Electricity Supply and Demand will include consultations with experts and public discussions regarding the introduction of new nuclear power plants and small modular reactors (SMRs).
Discussions on restructuring the functions of public power companies have also begun. The ministry has initiated talks to redefine the roles of the five major power companies in line with energy transition goals and plans to establish a restructuring plan by the end of the year.
However, there are several challenges to address in the implementation of these policies. It is essential to resolve issues related to community acceptance of transmission network construction and system saturation, and to ensure timely supply of power and industrial water in line with the operational schedules of semiconductor national advanced industrial complexes and AI data centers. The 12th Basic Plan must also determine the appropriate balance between nuclear power and renewable energy, while addressing the need for realistic electricity and water rates and improving the financial structure of Korea Electric Power Corporation.
In a recent interview with Aju Economy, Minister Kim emphasized, "Environment, industry, and energy are no longer opposing concepts but fields that must progress together," and stated, "We will achieve tangible results in green transition based on the consistency of climate and energy policies."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.