Insight
The Republic of Korea’s industrial sector is a major contributor to its economy and greenhouse gas emissions, accounting for 34% of the national total in 2018. With a diverse industrial base, including hard-to-abate sectors, Korea is transitioning toward sustainability, backed by government policies, investments, and public-private partnerships. The nation’s commitment to achieving carbon neutrality is reflected in its ambitious goals and strategies, including a $100 billion investment in climate-tech and high-tech manufacturing by 2030.
Industry GHG Emissions
In 2018, total greenhouse gas emissions in the Republic of Korea were 727.6 million tonnes CO2-equivalent, with approximately 240 million tonnes attributed to the industrial sector. Emissions from industrial processes and product use accounted for 57 million tonnes, while energy-related fuel combustion in manufacturing industries and construction contributed 187 million tonnes. Together, these sectors form a significant portion of the country’s overall emissions profile, underscoring the critical need for decarbonisation efforts.
Economic Relevance of Sectors
Chemicals & Refining
Annual turnover (2023):
322.7 billion USD
Production capacity (2022):
Ethylene: 12.8 million tonnes
Refining: 3,363 thousand barrels/day
Number of employees (2023):
165,934
Main export markets:
China, USA, India, Vietnam, Japan
Industry hotspots:
Daesan, Yeosu, Ulsan, Onsan
Metals Including Iron and Steel
Annual net turnover (2022):
Ferrous metals: 71.7 billion USD
Non-ferrous metals: 46.95 billion USD
Production capacity (2022):
Ferrous metals: 65.8 million tonnes crude steel
Non-ferrous metals: 2.25 million tonnes
Number of employees (2022):
197,410
Main export markets:
EU, Japan, China, US, India, Vietnam
Biggest companies (2022):
POSCO, Hyundai Steel, LS MnM, Korea Zinc, Poongsan, Novelis Korea, Youngpoong SOONC
Industry hotspots:
Pohang, Gwangyang, Ulsan, Dangjin
Cement
Annual net turnover (2022):
3.85 billion USD
Production capacity (2022):
51 million tonnes
Number of employees (2022):
5,100
Biggest companies (2022):
Sampyo Cement, Ssangyong C&E, Hanil Cement, Sungshin Cement, Halla Cement
Industry hotspots:
Gangwon-do, Chungcheongbuk-do
Korean Public-Private Partnerships – Funding Opportunities
The Korean government has outlined a $100 billion investment in public-private partnerships by 2030 to foster the climate-tech industry. This initiative aims to support the creation of 10 climate-tech unicorn companies and generate 100,000 jobs. A dedicated fund will focus on high-tech manufacturing and emerging technologies, complemented by strategies to attract $153 million in private funding for ESG initiatives, including impact investing and corporate venture capital.
Relevant Policies and Roadmaps
The Framework Act on Carbon Neutrality and Green Growth establishes principles and systems for addressing climate change, requiring sector-specific emission reduction targets. The Carbon Neutrality Technology Innovation Roadmap outlines step-by-step goals for applying the Korean Carbon Neutrality Top 100 Core Technologies in industrial sites, providing a blueprint for R&D investment in decarbonisation. These core technologies reflect Korea’s geographical conditions, industrial structure, and technological capabilities, guiding the nation’s transition toward carbon neutrality.
Flagship Projects
The Carbon Neutrality Core Technology Development Project, launched in 2023, is driving the green transformation of Korea’s key carbon-emitting industries, including steel, cement, petrochemicals, and semiconductors. This initiative focuses on developing and demonstrating carbon-neutral processes in manufacturing. Additionally, the Carbon Neutrality Grand Consortium facilitates R&D collaboration and knowledge sharing across institutions, promoting the adoption of carbon-neutral technologies throughout Korea’s industrial landscape.
