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[Environment · Energy] 21st Presidential Election: Forecast of Policy Shifts in the Environmental and Energy Sectors

2025.07.07

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<div style="text-align: justify;">On June 3, 2025, Jae-myung Lee of the Democratic Party of Korea was elected the 21st President of the Republic of Korea.  With a change in the ruling party, significant shifts in national policies are expected over the next five years, particularly in the environmental and energy sectors. 
 
This newsletter outlines expected policy developments under the new administration, based primarily on President Lee’s campaign pledges. 
 
 
<div style="text-align: left;">1. Effective Carbon Neutrality for Balanced Economic and Environmental Growth</div>

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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Establishing a Ministry of Climate and Energy; proactive response to carbon neutrality and energy transition</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: justify;" valign="middle">Creating a control tower to integrate climate crisis response and energy policies.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Enactment of [the Carbon Neutral Industry Act], [Special Act on Fostering Climate Technology Industry]</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: justify;" valign="middle">Expanding support for EVs, renewable energy, green hydrogen; promoting climate tech R&D and startups.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Discovering New Carbon-Neutral Industries and Technologies / Promoting Low-Carbon Innovation</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: justify;" valign="middle">Strengthening low-carbon R&D and process improvement in high-emission industries.</td>
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President Lee, since his candidacy, pledged to establish a Ministry of Climate and Energy (the “Climate and Energy Ministry”) as a central coordination body to systematize the government’s response to the climate crisis and energy transition.  He emphasized the importance of pursuing both industrial competitiveness and climate action through an energy mix that incorporates both nuclear power and renewable energy.  To support this approach, he proposed the creation of the Climate and Energy Ministry and the development of a nationwide energy expressway infrastructure. 
 
Furthermore, the President expressed a strong commitment to ensuring a just transition, aiming to minimize the negative impact on workers and industries while implementing carbon neutrality policies based on public participation. 
 
 
<div style="text-align: left;">2. Power Sector Reform Centered on Renewable Energy & RE100 Commitment</div>

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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Expanding renewable energy deployment and improving related regulations</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; text-align: justify; line-height: 110%; " valign="middle">Expansion of rooftop solar power systems, support for solar repowering, promotion of self-consumption solar installations, improvement of PPA schemes, expansion of RE100 incentives, development of RE100-designated industrial complexes, deployment of virtual power plants (VPPs), enhancement of grid flexibility through the use of mobile ESS, enactment of [the Support Act for Regions Transitioning from Coal Power], development of green hydrogen production technologies and construction of liquefied hydrogen plants, and implementation of demand- and efficiency-based energy management systems (EMS).</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Construction of the West Coast Energy Expressway by 2030 and the U-shaped National Energy Expressway by 2040</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; text-align: justify; line-height: 110%; " valign="middle">Strengthening grid reliability and safety through grid expansion, developing distributed and intelligent power infrastructure, and promoting HVDC (high-voltage direct current transmission) and BESS (battery energy storage systems), etc., launching a solar power belt connecting Gyeonggi Province, the West Coast, the South Coast, and the Yeongnam inland region, and establishing an offshore wind belt linking the waters off Incheon, the Southwest Sea, the South Coast, and the East Coast of North Gyeongsang Province.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">National-level support for offshore wind power</td>
			<td style="border: 1px solid rgb(187, 187, 187);padding: 12px; text-align: justify; line-height: 110%;" valign="middle">Positioning Jeonnam, the Southwest Sea, and Jeju as key hubs for offshore wind power, while promoting regional coexistence through community benefit-sharing schemes such as solar and wind dividends.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Establishing community-driven RE100 energy governance</td>
			<td style="border: 1px solid rgb(187, 187, 187);padding: 12px; text-align: justify; line-height: 110%;" valign="middle">Implementation of solar and wind dividends, and additional REC weighting based on the level of resident participation.</td>
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A core pledge of President Lee is the restructuring of the power system around renewable energy.  Many of the energy-related policy commitments focus on expanding renewable energy and, in turn, securing grid capacity and enhancing system flexibility.  The key components of this renewable energy strategy are solar and wind power.  In the case of solar power, the emphasis is on distributed generation and increasing local income, while wind power focuses on large-scale development, such as offshore wind farms.  These efforts signal a strong commitment to actively achieving RE100 (100% renewable energy use). 
 
Alongside the restructuring of the power system, grid expansion is an essential component.  According to the policy pledges, the primary approach to grid expansion involves not only accelerating traditional grid development, but also actively utilizing distributed energy resources.  The goal is to reduce the burden on the central transmission network while building a regionally rooted energy ecosystem.  Enhancing energy efficiency through the use of BESS (battery energy storage systems) and AI is also considered a key strategy in expanding the grid. 
 
Another key development to note is the recent passage of three major energy laws.  Among them, the Special Act on the Promotion of Offshore Wind Power Distribution and Industry Development and the Special Act on the Expansion of the National Power Grid are closely aligned with the President’s core energy policy pledges.  Each act delegates substantial regulatory detail to presidential decrees, which are expected to gain momentum following the launch of the new administration. 
 
It is also important to highlight the emphasis on enhancing local acceptance through mutual benefit.  President Lee, in line with his broader vision for basic income, has pledged to promote community-based energy governance models such as solar and wind dividends.  Due to the nature of renewable energy, projects are often located in mountainous or coastal areas with relatively lower income levels.  The policy aims to increase income for local farmers and fishers through benefit-sharing renewable energy projects and by granting additional Renewable Energy Certificate (REC) weighting based on the level of resident participation.  This approach is intended to simultaneously improve local acceptance of renewable energy projects and enhance the livelihoods of farming and fishing communities.  
 
However, matters related to resident participation and acceptance vary by region, making it inappropriate to uniformly prescribe such provisions in higher-level legislation.  In practice, these details are governed by local ordinances; but, there have been instances where local ordinances failed to clearly define the legal scope of “residents” or the required level of consent, resulting in the adoption of impractical or unworkable standards.  Accordingly, it is necessary for the central government to establish standard guidelines or model criteria for such ordinances. 
 
 
<div style="text-align: left;">3. Clean Oceans, Plastic-Free Transition, Fine Dust Reduction, River Restoration, and Biodiversity Conservation</div>

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			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000; padding-right: 12px; padding: 8px; text-align: center; line-height: 110%; " valign="middle" width="35%">Subcategory</td>
			<td style="border: 1px solid rgb(187, 187, 187); background-color: rgb(242, 242, 242);border-top: 2px solid #cc0000;;padding-right: 12px; padding: 8px; text-align: center; line-height: 110%; " valign="middle" width="65%">Details</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Promoting Clean and Healthy Oceans</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; text-align: justify; line-height: 110%; " valign="middle">Expanding national responsibility for marine debris, scaling up tidal flat cleanup projects, and promoting increased compensation for discarded fishing gear along with the establishment of a recycling system.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Promoting a Plastic-Free Future for the Next Generation</td>
			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; text-align: justify; line-height: 110%; " valign="middle">Introducing PET bottle deposit systems, preparing a roadmap for ending the use of the metropolitan landfill site, enforcing mandatory recycled plastic use.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Promoting Clear Skies Free of Fine Dust</td>
			<td style="border: 1px solid rgb(187, 187, 187);padding: 12px; text-align: justify; line-height: 110%;" valign="middle">Pushing Korea-China cooperation agreements, strengthening oversight of integrated permit-based facilities, enhancing control of ultrafine dust precursors, phasing out or converting coal-fired power plants by 2040, and advancing policies for eco-friendly transport and logistics transition.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Promoting Restoration and Water Quality Improvement of the Four Major Rivers</td>
			<td style="border: 1px solid rgb(187, 187, 187);padding: 12px; text-align: justify; line-height: 110%;" valign="middle">Dismantling the weirs on the Four Major Rivers, fully opening existing weirs, strengthening non-point source pollution management, and expanding water quality monitoring centers.</td>
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			<td style="border: 1px solid rgb(187, 187, 187); padding: 12px; line-height: 110%; text-align: left;" valign="middle">Promoting Biodiversity Conservation Policies</td>
			<td style="border: 1px solid rgb(187, 187, 187);padding: 12px; text-align: justify; line-height: 110%;" valign="middle">Expanding protected areas to 30% by 2030, strengthening national-level biosecurity, and pursuing international recognition of wetlands as carbon sinks.</td>
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According to the Marine Environment Management Act, the national or local governments are authorized to collect and dispose of marine waste and may delegate such responsibilities to private entities.  Under this law, the Korea Marine Environment Management Corporation (“KOEM”) has been established to carry out activities for improving the marine environment, including the collection and disposal of pollutants, as well as the installation and operation of pollutant storage facilities.  As the expansion of national responsibility for marine debris is being signaled, KOEM’s role is expected to grow, along with an anticipated increase in public procurement for marine waste collection services.  
 
Facilities that emit more than 20 tons of air pollutants annually or discharge over 700㎥ of wastewater per day are subject to integrated permitting under the Act on the Integrated Control of Pollutant-Discharging Facilities.  In line with the government’s stated intention to closely monitor and manage fine dust, it is expected that installation standards for pollution control equipment, such as electrostatic precipitators (EPS) as well as requirements for process improvements at emission sources, will be strengthened.  Given the anticipated tightening of oversight, operators should also be mindful of potential administrative actions such as suspension of operations, shutdown orders, or imposition of penalties in the event of exceeding permitted emission limits. 
 
As seen above, it is expected that President Lee will push for implementation of more carbon-neutral policies with additional emphasis on power generation based on renewable energy resources while building necessary infrastructure that would be aligned with the restructuring of the electric sector in Korea. 
 
 
<a href="https://www.jipyong.com/kr/board/news_view.php?seq=14116" target="_blank">[Link to Korean Newsletter]</a> 
 
 
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KOREA LEGAL INSIGHT [Environment · Energy] 21st Presidential Election: Forecast of Policy Shifts in the Environmental and Energy Sectors 2025.07.07

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