South Korea experienced a remarkable transformation, rising from one of the world's poorest nations in the 1960s to a top-ten global economy. This journey, marked by rapid industrialization and unprecedented growth, was powered by more than just ambition; it was fueled by a strategic, adaptable, and forward-looking energy policy. Such an unprecedented economic achievement would not have been possible without a key role of energy. By systematically building and upgrading its infrastructure, diversifying its energy portfolio, and fostering a robust domestic industry, Korea secured the power needed for its economic miracle. This analysis explores the history, strategies, and institutional frameworks of Korea's energy policy evolution, deriving valuable lessons for developing nations seeking to chart their own course toward sustainable economic growth.
#energy policy #energy transition
Korea rose from one of the poorest countries in the 1960s to one of the top ten economies in the 21st century. Such an unprecedented economic achievement would not have been possible without a key role of energy. Over the last half century, the Republic of Korea has rapidly built and upgraded the electricity infrastructure, diversifying its electricity supply portfolio, developed a robust nuclear industry and become one of the pioneers in the liquefied natural gas (LNG) trade. Such remarkable progress is enviable to those developing countries that had been in a better position than Korea 60 years ago when the Korean Civil War (1950~1952) devastated the peninsula and made Korea one of the poorest countries in the world Korea has developed and implemented a series of energy policies during a half century of its economic development, growth and stabilization (1960s~2000s). Between 1960s and 2000s, the most remarkable trend in energy policies has been the awareness of the close nexus between energy and the environment that emerged. The second key trend was the introduction of competition and the third one was a shift of policy weight from energy supply-oriented into demand-oriented one. As these trends progressed, Korean energy policy evolved towards a policy target that balanced economy and the environment in lieu of the initial energy security-oriented focus This report attempts to derive lessons that could help policy makers in the developing world in developing and implementing efficient and cost-effective energy policies as a high priority area of the policy agenda to pursue national economic growth. Developing countries recognize the Korean economic achievement, but without a systematic approach to understand how Korea attained its unprecedented economic growth, they do not have a clear idea of the steps required to emulate this success.
Energy is indispensable for economic development and growth. Productive demand caused by the increase in economic production will increase faster than that of economic growth in the earlier stage, but, eventually slow down passing the certain point. This phenomenon takes place due to a change in industrial structure, technological advance, and substitution of labor by capital. As an economy grows, the structure of industry transforms from a labor-intensive primary industry to a secondary industry in which relatively more capital- and energy-intensive heavy and petrochemical industry will be dominant. Later, the higher level of economic growth calls for a tertiary industry which requires less energy consumption.
In the Korean energy context, energy problems have been endogenously and exogenously emerging in a successive manner. Accordingly, energy policy regimes have changed in the course of time. In the 1960s, sufficient and cheaper supply of energy required for the successful take-off of nation's economy was the key condition. During the oil shock in 1970s and 1980s, the vulnerability of nation's energy system to external shocks was the major issue. Thereafter, the degrading environment due to the increasing use of fossil fuels ensued as another issue of a top priority to be addressed. There also emerged the problem of obsolescent governance structure on industry management, owing to the increasing scale and complexity of energy industries. In recent years, as a result of higher oil price trend and the escalating global climate change issue, the sustainability of Korea's energy system has become a national agenda of a top priority.
1. Domestic Coal Development to overcome Energy Poverty (1950s)
In the 1940s and 1950s, energy poverty was an issue of a top-priority, calling for a concerted national response. Entering the 1950s, policies aiming at the development of domestic coal, mostly anthracite, were implemented. Many railways were constructed to connect coal mines and consumers along with construction of coal-fired power plants. As a result, the share of coal in the primary energy supply had fast increased from 19.2% in 1955 up to 43.6% in 1965, which planted seed for modern industrialization.
2. Oilization Policy Regime (1960s~1970s)
The first 5-year economic development plan (1962~1966) began in 1962. In order to achieve a rapid economic growth, the Korean government shifted its strategy to oilization policy away from coal-based strategy, realizing the limit of domestic coal production not enough to fuel the massive economic take-off. The oil-based development regime triggered the construction rush of oil refineries, which results in oil consumption galloped at an annual growth rate of over 30% from the past annual 2%. The oilization of energy system had improved the overall fuel efficiency which again devoted to the successful take-off of the Korean economy.
3. Energy Security Policy Regime (late 1970s~1980s)
In response to the two oil shock in the 1970s, the Korean government adopted energy security enhancement policies. Energy security measures such as diversification of energy sources and suppliers, conservation and oil stockpiling, the construction of nuclear and bituminous coal-fired power plants along with the establishment of an institute specialized in energy conservation (currently KEA) and a little later an independent energy ministry (Ministry of Energy & Resources: MOER) in1978. Overall, the economic hardship during the 2nd oil shock era and the stringent policy responses thereof brought forth a significant structural change in Korea's energy system.
4. Environmental Protection Policy Regime (1980s~1990s)
Air-pollution level had increased significantly in urban areas, and became a source of great concern in the 1970s and1980s. This degradation of air quality was due to two causes: the ever-increasing use of fossil fuels and the lack of well-organized environmental policy. The environmental policy became one of the top priority national agenda, starting with the enactment of the Environmental Conservation Law in 1977, followed by the establishment of the Agency of Environment in 1980 (currently, the Ministry of Environment). Indebted to the shift in energy mix and the stringent emission control, the once-deteriorating environmental quality improved slowly to reach the standards recommended by international health institutes
5. Market-Oriented Policy Regime (1990s~2000s)
Korea's energy market was dominated by the government through stringent regulation, intervention, subsidization and the operation of government-running monopolies. However, the Korean government had introduced more market mechanism into the nation's macro-economic management, allowing more autonomy to the private actors and, thereby, enhancing innovations required for further economic growth. The reform policy consisted of three strategies: to provide more autonomy in management decisions, to make the relevant industry competitive by way of de-monopolization, and finally to privatize public enterprises. The Public Enterprise Management law was enacted to facilitate the process, which was culminated in a massive restructuring scheme on public energy monopolies (KEPCO, KOGAS), which remains only as a half success.
6. Energy Technology Policy Regime (2000s~)
The first agenda of Korea's energy technology policy is to develop technological competitiveness of Korea's energy-related industries up to the level of advanced nations. The rapid evolution of technology policy started with the 1st National Energy Technology Development Plan (2006~2015). Thereafter, a series of plans for energy technology development have been introduced by then newly established the Korea Institute of Energy Technology Evaluation and Planning (KETEP). Hundreds of R&DD projects are organized and promoted under the long-term technology development roadmap. The projects are categorized into four major fields: energy efficiency, new and renewable energy sources, clean fossil fuel, and power generation and nuclear energy.
Considering multidimensional aspects of energy security, the Korean government has promoted a wide range of policy efforts to achieve the policy goal of energy security, including:
1. Energy Security
2. Fostering Energy Industry
As the role of energy as an important input for economic development rapidly grew, the Korean government actively promoted fostering the energy industry. The government initiated and helped the industry in expanding the production of energy-supply facilities construction, to ensure energy supply uninterrupted. The energy industry in Korea has been developed through three major approaches, 1) openness, 2) government's strong leadership, and 3) industrial structure based on the market mechanism.
3. Building of Policy Infrastructure
As energy issues emerges, spreads and permeates in all aspects of the national economy, a number of ministries and institutions have become more or less involved in developing and implementing of energy policies and relevant legislations in their own ways. Consequently, the National Energy Committee chaired by the President was established to deliberate and mediate major energy policies and plans.
4. Technology Development: Introduction and Indigenization
After a long and tedious evolution process, energy technology issue became one of the top-priority policy agenda in Korea's energy policy arena. In response to the UNFCCC and the following global trend towards a future green and clean sustainable energy system, a technology-oriented breakthrough strategy was called for further development of Korea's energy industry, and the growing voices for sustainable growth among civil society. The full-fledged evolution began in 2006 when the 1st National Energy Technology Development Plan (2006~2015) was adopted by the National Science and Technology Committee.
5. Energy Conservation and Energy Efficiency
Right after the 1st and 2nd Oil Shocks, the Korean government introduced energy conservation policy which contains reduced oil use, establishment of the Energy Conservation Committee, “Heat Management Law (1974),” followed by the legislation of “Rational Energy Use Law’ at the end of 1970s. During the 1980s-1990s, energy conservation policy had been up-scaled with the establishment of the Energy Management Corporation (KEMCO, currently, Korea Energy Agency: KEA). Since 1993, Korea has developed a series of the Basic Plan for Rational Energy Use, which are to be revised at the end of each five-year period. The 5th Basic Plan was announced in 2013, and set the target of improving energy intensity 4.1% by 2017, while introducing various measures to achieve this target. The MOTIE announced several energy savings measures to encourage the general public to voluntarily conserve energy.
6. New and Renewable Energy Development and Deployment
New & Renewable Energy (hereinafter, NRE) is currently seen as a key solution to the two major issues: energy security and climate change. In this regard, many countries, regardless of developed or developing countries, are taking great efforts to develop and deploy renewable energies, fostering relevant industries. To keep up with this global trend, the Korean government has developed and implemented a variety of policy incentives and programs to promote a larger uptake of NREs and to promote NRE industries. In recent years, the Korean government’s investment in NRE has been accelerated in response to the climate change as well as energy security.
The history of South Korea's energy policy offers a compelling blueprint for developing countries navigating the complex nexus of energy access, economic development, and environmental sustainability. Its journey from an energy-poor nation to a global industrial leader was not the result of a single master plan but rather a dynamic, problem-solving process that evolved over decades. For policymakers today, the Korean experience yields four fundamental principles for success.
South Korea experienced a remarkable transformation, rising from one of the world's poorest nations in the 1960s to a top-ten global economy. This journey, marked by rapid industrialization and unprecedented growth, was powered by more than just ambition; it was fueled by a strategic, adaptable, and forward-looking energy policy. Such an unprecedented economic achievement would not have been possible without a key role of energy. By systematically building and upgrading its infrastructure, diversifying its energy portfolio, and fostering a robust domestic industry, Korea secured the power needed for its economic miracle. This analysis explores the history, strategies, and institutional frameworks of Korea's energy policy evolution, deriving valuable lessons for developing nations seeking to chart their own course toward sustainable economic growth.
#energy policy #energy transition
Korea rose from one of the poorest countries in the 1960s to one of the top ten economies in the 21st century. Such an unprecedented economic achievement would not have been possible without a key role of energy. Over the last half century, the Republic of Korea has rapidly built and upgraded the electricity infrastructure, diversifying its electricity supply portfolio, developed a robust nuclear industry and become one of the pioneers in the liquefied natural gas (LNG) trade. Such remarkable progress is enviable to those developing countries that had been in a better position than Korea 60 years ago when the Korean Civil War (1950~1952) devastated the peninsula and made Korea one of the poorest countries in the world Korea has developed and implemented a series of energy policies during a half century of its economic development, growth and stabilization (1960s~2000s). Between 1960s and 2000s, the most remarkable trend in energy policies has been the awareness of the close nexus between energy and the environment that emerged. The second key trend was the introduction of competition and the third one was a shift of policy weight from energy supply-oriented into demand-oriented one. As these trends progressed, Korean energy policy evolved towards a policy target that balanced economy and the environment in lieu of the initial energy security-oriented focus This report attempts to derive lessons that could help policy makers in the developing world in developing and implementing efficient and cost-effective energy policies as a high priority area of the policy agenda to pursue national economic growth. Developing countries recognize the Korean economic achievement, but without a systematic approach to understand how Korea attained its unprecedented economic growth, they do not have a clear idea of the steps required to emulate this success.
Energy is indispensable for economic development and growth. Productive demand caused by the increase in economic production will increase faster than that of economic growth in the earlier stage, but, eventually slow down passing the certain point. This phenomenon takes place due to a change in industrial structure, technological advance, and substitution of labor by capital. As an economy grows, the structure of industry transforms from a labor-intensive primary industry to a secondary industry in which relatively more capital- and energy-intensive heavy and petrochemical industry will be dominant. Later, the higher level of economic growth calls for a tertiary industry which requires less energy consumption.
In the Korean energy context, energy problems have been endogenously and exogenously emerging in a successive manner. Accordingly, energy policy regimes have changed in the course of time. In the 1960s, sufficient and cheaper supply of energy required for the successful take-off of nation's economy was the key condition. During the oil shock in 1970s and 1980s, the vulnerability of nation's energy system to external shocks was the major issue. Thereafter, the degrading environment due to the increasing use of fossil fuels ensued as another issue of a top priority to be addressed. There also emerged the problem of obsolescent governance structure on industry management, owing to the increasing scale and complexity of energy industries. In recent years, as a result of higher oil price trend and the escalating global climate change issue, the sustainability of Korea's energy system has become a national agenda of a top priority.
1. Domestic Coal Development to overcome Energy Poverty (1950s)
In the 1940s and 1950s, energy poverty was an issue of a top-priority, calling for a concerted national response. Entering the 1950s, policies aiming at the development of domestic coal, mostly anthracite, were implemented. Many railways were constructed to connect coal mines and consumers along with construction of coal-fired power plants. As a result, the share of coal in the primary energy supply had fast increased from 19.2% in 1955 up to 43.6% in 1965, which planted seed for modern industrialization.
2. Oilization Policy Regime (1960s~1970s)
The first 5-year economic development plan (1962~1966) began in 1962. In order to achieve a rapid economic growth, the Korean government shifted its strategy to oilization policy away from coal-based strategy, realizing the limit of domestic coal production not enough to fuel the massive economic take-off. The oil-based development regime triggered the construction rush of oil refineries, which results in oil consumption galloped at an annual growth rate of over 30% from the past annual 2%. The oilization of energy system had improved the overall fuel efficiency which again devoted to the successful take-off of the Korean economy.
3. Energy Security Policy Regime (late 1970s~1980s)
In response to the two oil shock in the 1970s, the Korean government adopted energy security enhancement policies. Energy security measures such as diversification of energy sources and suppliers, conservation and oil stockpiling, the construction of nuclear and bituminous coal-fired power plants along with the establishment of an institute specialized in energy conservation (currently KEA) and a little later an independent energy ministry (Ministry of Energy & Resources: MOER) in1978. Overall, the economic hardship during the 2nd oil shock era and the stringent policy responses thereof brought forth a significant structural change in Korea's energy system.
4. Environmental Protection Policy Regime (1980s~1990s)
Air-pollution level had increased significantly in urban areas, and became a source of great concern in the 1970s and1980s. This degradation of air quality was due to two causes: the ever-increasing use of fossil fuels and the lack of well-organized environmental policy. The environmental policy became one of the top priority national agenda, starting with the enactment of the Environmental Conservation Law in 1977, followed by the establishment of the Agency of Environment in 1980 (currently, the Ministry of Environment). Indebted to the shift in energy mix and the stringent emission control, the once-deteriorating environmental quality improved slowly to reach the standards recommended by international health institutes
5. Market-Oriented Policy Regime (1990s~2000s)
Korea's energy market was dominated by the government through stringent regulation, intervention, subsidization and the operation of government-running monopolies. However, the Korean government had introduced more market mechanism into the nation's macro-economic management, allowing more autonomy to the private actors and, thereby, enhancing innovations required for further economic growth. The reform policy consisted of three strategies: to provide more autonomy in management decisions, to make the relevant industry competitive by way of de-monopolization, and finally to privatize public enterprises. The Public Enterprise Management law was enacted to facilitate the process, which was culminated in a massive restructuring scheme on public energy monopolies (KEPCO, KOGAS), which remains only as a half success.
6. Energy Technology Policy Regime (2000s~)
The first agenda of Korea's energy technology policy is to develop technological competitiveness of Korea's energy-related industries up to the level of advanced nations. The rapid evolution of technology policy started with the 1st National Energy Technology Development Plan (2006~2015). Thereafter, a series of plans for energy technology development have been introduced by then newly established the Korea Institute of Energy Technology Evaluation and Planning (KETEP). Hundreds of R&DD projects are organized and promoted under the long-term technology development roadmap. The projects are categorized into four major fields: energy efficiency, new and renewable energy sources, clean fossil fuel, and power generation and nuclear energy.
Considering multidimensional aspects of energy security, the Korean government has promoted a wide range of policy efforts to achieve the policy goal of energy security, including:
1. Energy Security
2. Fostering Energy Industry
As the role of energy as an important input for economic development rapidly grew, the Korean government actively promoted fostering the energy industry. The government initiated and helped the industry in expanding the production of energy-supply facilities construction, to ensure energy supply uninterrupted. The energy industry in Korea has been developed through three major approaches, 1) openness, 2) government's strong leadership, and 3) industrial structure based on the market mechanism.
3. Building of Policy Infrastructure
As energy issues emerges, spreads and permeates in all aspects of the national economy, a number of ministries and institutions have become more or less involved in developing and implementing of energy policies and relevant legislations in their own ways. Consequently, the National Energy Committee chaired by the President was established to deliberate and mediate major energy policies and plans.
4. Technology Development: Introduction and Indigenization
After a long and tedious evolution process, energy technology issue became one of the top-priority policy agenda in Korea's energy policy arena. In response to the UNFCCC and the following global trend towards a future green and clean sustainable energy system, a technology-oriented breakthrough strategy was called for further development of Korea's energy industry, and the growing voices for sustainable growth among civil society. The full-fledged evolution began in 2006 when the 1st National Energy Technology Development Plan (2006~2015) was adopted by the National Science and Technology Committee.
5. Energy Conservation and Energy Efficiency
Right after the 1st and 2nd Oil Shocks, the Korean government introduced energy conservation policy which contains reduced oil use, establishment of the Energy Conservation Committee, “Heat Management Law (1974),” followed by the legislation of “Rational Energy Use Law’ at the end of 1970s. During the 1980s-1990s, energy conservation policy had been up-scaled with the establishment of the Energy Management Corporation (KEMCO, currently, Korea Energy Agency: KEA). Since 1993, Korea has developed a series of the Basic Plan for Rational Energy Use, which are to be revised at the end of each five-year period. The 5th Basic Plan was announced in 2013, and set the target of improving energy intensity 4.1% by 2017, while introducing various measures to achieve this target. The MOTIE announced several energy savings measures to encourage the general public to voluntarily conserve energy.
6. New and Renewable Energy Development and Deployment
New & Renewable Energy (hereinafter, NRE) is currently seen as a key solution to the two major issues: energy security and climate change. In this regard, many countries, regardless of developed or developing countries, are taking great efforts to develop and deploy renewable energies, fostering relevant industries. To keep up with this global trend, the Korean government has developed and implemented a variety of policy incentives and programs to promote a larger uptake of NREs and to promote NRE industries. In recent years, the Korean government’s investment in NRE has been accelerated in response to the climate change as well as energy security.
The history of South Korea's energy policy offers a compelling blueprint for developing countries navigating the complex nexus of energy access, economic development, and environmental sustainability. Its journey from an energy-poor nation to a global industrial leader was not the result of a single master plan but rather a dynamic, problem-solving process that evolved over decades. For policymakers today, the Korean experience yields four fundamental principles for success.
Korea rose from one of the poorest countries in the 1960s to one of the top ten economies in the 21st century. Such an unprecedented economic achievement would not have been possible without a key role of energy. Over the last half century, the Republic of Korea has rapidly built and upgraded the electricity infrastructure, diversifying its electricity supply portfolio, developed a robust nuclear industry and become one of the pioneers in the liquefied natural gas (LNG) trade. Such remarkable progress is enviable to those developing countries that had been in a better position than Korea 60 years ago when the Korean Civil War (1950~1952) devastated the peninsula and made Korea one of the poorest countries in the world Korea has developed and implemented a series of energy policies during a half century of its economic development, growth and stabilization (1960s~2000s). Between 1960s and 2000s, the most remarkable trend in energy policies has been the awareness of the close nexus between energy and the environment that emerged. The second key trend was the introduction of competition and the third one was a shift of policy weight from energy supply-oriented into demand-oriented one. As these trends progressed, Korean energy policy evolved towards a policy target that balanced economy and the environment in lieu of the initial energy security-oriented focus This report attempts to derive lessons that could help policy makers in the developing world in developing and implementing efficient and cost-effective energy policies as a high priority area of the policy agenda to pursue national economic growth. Developing countries recognize the Korean economic achievement, but without a systematic approach to understand how Korea attained its unprecedented economic growth, they do not have a clear idea of the steps required to emulate this success.
Energy is indispensable for economic development and growth. Productive demand caused by the increase in economic production will increase faster than that of economic growth in the earlier stage, but, eventually slow down passing the certain point. This phenomenon takes place due to a change in industrial structure, technological advance, and substitution of labor by capital. As an economy grows, the structure of industry transforms from a labor-intensive primary industry to a secondary industry in which relatively more capital- and energy-intensive heavy and petrochemical industry will be dominant. Later, the higher level of economic growth calls for a tertiary industry which requires less energy consumption.
In the Korean energy context, energy problems have been endogenously and exogenously emerging in a successive manner. Accordingly, energy policy regimes have changed in the course of time. In the 1960s, sufficient and cheaper supply of energy required for the successful take-off of nation's economy was the key condition. During the oil shock in 1970s and 1980s, the vulnerability of nation's energy system to external shocks was the major issue. Thereafter, the degrading environment due to the increasing use of fossil fuels ensued as another issue of a top priority to be addressed. There also emerged the problem of obsolescent governance structure on industry management, owing to the increasing scale and complexity of energy industries. In recent years, as a result of higher oil price trend and the escalating global climate change issue, the sustainability of Korea's energy system has become a national agenda of a top priority.
1. Domestic Coal Development to overcome Energy Poverty (1950s)
In the 1940s and 1950s, energy poverty was an issue of a top-priority, calling for a concerted national response. Entering the 1950s, policies aiming at the development of domestic coal, mostly anthracite, were implemented. Many railways were constructed to connect coal mines and consumers along with construction of coal-fired power plants. As a result, the share of coal in the primary energy supply had fast increased from 19.2% in 1955 up to 43.6% in 1965, which planted seed for modern industrialization.
2. Oilization Policy Regime (1960s~1970s)
The first 5-year economic development plan (1962~1966) began in 1962. In order to achieve a rapid economic growth, the Korean government shifted its strategy to oilization policy away from coal-based strategy, realizing the limit of domestic coal production not enough to fuel the massive economic take-off. The oil-based development regime triggered the construction rush of oil refineries, which results in oil consumption galloped at an annual growth rate of over 30% from the past annual 2%. The oilization of energy system had improved the overall fuel efficiency which again devoted to the successful take-off of the Korean economy.
3. Energy Security Policy Regime (late 1970s~1980s)
In response to the two oil shock in the 1970s, the Korean government adopted energy security enhancement policies. Energy security measures such as diversification of energy sources and suppliers, conservation and oil stockpiling, the construction of nuclear and bituminous coal-fired power plants along with the establishment of an institute specialized in energy conservation (currently KEA) and a little later an independent energy ministry (Ministry of Energy & Resources: MOER) in1978. Overall, the economic hardship during the 2nd oil shock era and the stringent policy responses thereof brought forth a significant structural change in Korea's energy system.
4. Environmental Protection Policy Regime (1980s~1990s)
Air-pollution level had increased significantly in urban areas, and became a source of great concern in the 1970s and1980s. This degradation of air quality was due to two causes: the ever-increasing use of fossil fuels and the lack of well-organized environmental policy. The environmental policy became one of the top priority national agenda, starting with the enactment of the Environmental Conservation Law in 1977, followed by the establishment of the Agency of Environment in 1980 (currently, the Ministry of Environment). Indebted to the shift in energy mix and the stringent emission control, the once-deteriorating environmental quality improved slowly to reach the standards recommended by international health institutes
5. Market-Oriented Policy Regime (1990s~2000s)
Korea's energy market was dominated by the government through stringent regulation, intervention, subsidization and the operation of government-running monopolies. However, the Korean government had introduced more market mechanism into the nation's macro-economic management, allowing more autonomy to the private actors and, thereby, enhancing innovations required for further economic growth. The reform policy consisted of three strategies: to provide more autonomy in management decisions, to make the relevant industry competitive by way of de-monopolization, and finally to privatize public enterprises. The Public Enterprise Management law was enacted to facilitate the process, which was culminated in a massive restructuring scheme on public energy monopolies (KEPCO, KOGAS), which remains only as a half success.
6. Energy Technology Policy Regime (2000s~)
The first agenda of Korea's energy technology policy is to develop technological competitiveness of Korea's energy-related industries up to the level of advanced nations. The rapid evolution of technology policy started with the 1st National Energy Technology Development Plan (2006~2015). Thereafter, a series of plans for energy technology development have been introduced by then newly established the Korea Institute of Energy Technology Evaluation and Planning (KETEP). Hundreds of R&DD projects are organized and promoted under the long-term technology development roadmap. The projects are categorized into four major fields: energy efficiency, new and renewable energy sources, clean fossil fuel, and power generation and nuclear energy.
Considering multidimensional aspects of energy security, the Korean government has promoted a wide range of policy efforts to achieve the policy goal of energy security, including:
1. Energy Security
2. Fostering Energy Industry
As the role of energy as an important input for economic development rapidly grew, the Korean government actively promoted fostering the energy industry. The government initiated and helped the industry in expanding the production of energy-supply facilities construction, to ensure energy supply uninterrupted. The energy industry in Korea has been developed through three major approaches, 1) openness, 2) government's strong leadership, and 3) industrial structure based on the market mechanism.
3. Building of Policy Infrastructure
As energy issues emerges, spreads and permeates in all aspects of the national economy, a number of ministries and institutions have become more or less involved in developing and implementing of energy policies and relevant legislations in their own ways. Consequently, the National Energy Committee chaired by the President was established to deliberate and mediate major energy policies and plans.
4. Technology Development: Introduction and Indigenization
After a long and tedious evolution process, energy technology issue became one of the top-priority policy agenda in Korea's energy policy arena. In response to the UNFCCC and the following global trend towards a future green and clean sustainable energy system, a technology-oriented breakthrough strategy was called for further development of Korea's energy industry, and the growing voices for sustainable growth among civil society. The full-fledged evolution began in 2006 when the 1st National Energy Technology Development Plan (2006~2015) was adopted by the National Science and Technology Committee.
5. Energy Conservation and Energy Efficiency
Right after the 1st and 2nd Oil Shocks, the Korean government introduced energy conservation policy which contains reduced oil use, establishment of the Energy Conservation Committee, “Heat Management Law (1974),” followed by the legislation of “Rational Energy Use Law’ at the end of 1970s. During the 1980s-1990s, energy conservation policy had been up-scaled with the establishment of the Energy Management Corporation (KEMCO, currently, Korea Energy Agency: KEA). Since 1993, Korea has developed a series of the Basic Plan for Rational Energy Use, which are to be revised at the end of each five-year period. The 5th Basic Plan was announced in 2013, and set the target of improving energy intensity 4.1% by 2017, while introducing various measures to achieve this target. The MOTIE announced several energy savings measures to encourage the general public to voluntarily conserve energy.
6. New and Renewable Energy Development and Deployment
New & Renewable Energy (hereinafter, NRE) is currently seen as a key solution to the two major issues: energy security and climate change. In this regard, many countries, regardless of developed or developing countries, are taking great efforts to develop and deploy renewable energies, fostering relevant industries. To keep up with this global trend, the Korean government has developed and implemented a variety of policy incentives and programs to promote a larger uptake of NREs and to promote NRE industries. In recent years, the Korean government’s investment in NRE has been accelerated in response to the climate change as well as energy security.
The history of South Korea's energy policy offers a compelling blueprint for developing countries navigating the complex nexus of energy access, economic development, and environmental sustainability. Its journey from an energy-poor nation to a global industrial leader was not the result of a single master plan but rather a dynamic, problem-solving process that evolved over decades. For policymakers today, the Korean experience yields four fundamental principles for success.