Market Overview 2025-2033

South Korea wind energy market size reached USD 1.7 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 4.2 Billion by 2033, exhibiting a growth rate (CAGR) of 9.50% during 2025-2033. The market is expanding due to ambitious renewable energy targets, technological advancements, and supportive government policies. Growth is driven by large-scale offshore projects, international partnerships, and streamlined regulations. With increasing investments and a focus on sustainability, the industry is becoming more dynamic, innovative, and globally competitive.

Sources

Key Market Highlights:

✔️ Strong market growth driven by national clean energy goals and carbon neutrality initiatives

✔️ Increasing investments in offshore and onshore wind power projects

✔️ Expanding technological advancements enhancing turbine efficiency and grid integration capabilities

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South Korea Wind Energy Market Trends and Drivers:

The South Korean wind energy market is growing rapidly. This growth stems from strong government policies. These policies cut carbon emissions and boost energy independence. In 2024, the Ministry of Trade, Industry, and Energy (MOTIE) updated its Renewable Energy 3020 Plan. The plan aims for 30% renewable energy generation by 2030. Wind power will contribute 12 GW to the national grid. To speed up deployment, the government has simplified permitting for offshore wind projects.

It has also increased subsidies for floating wind turbine technologies. These technologies are crucial because South Korea has few shallow coastal waters. State-owned companies, like Korea Electric Power Corporation (KEPCO), have pledged KRW 8.3 trillion ($6.2 billion) to develop offshore wind farms in the Southwest Sea. This includes the 1.4 GW Daejeong project near Jeju Island. Private companies are also getting involved. Firms like SK E&S and Hanwha Solutions are using tax credits from the 2024 Green Finance Act to fund hybrid wind-solar farms. However, challenges remain. 

There is local opposition to land use and grid congestion in rural areas. This has led policymakers to focus on floating offshore wind systems and AI-driven grid management solutions. South Korea is quickly becoming a leader in floating offshore wind technology. This growth comes from its deep coastal waters and strong shipbuilding industry. In 2024, Hyundai Heavy Industries launched the *HexaWind* platform. This modular floating turbine works in depths over 100 meters and cuts installation costs by 25% compared to fixed-bottom structures. Collaborative R&D between schools like KAIST and companies like Doosan Enerbility has led to advancements in lightweight materials and maintenance algorithms. 

These innovations boost turbine efficiency in areas prone to typhoons. The 800 MW Ulsan Floating Wind Farm, set to finish in 2026, shows this trend. It will include hydrogen production facilities to store extra energy. Also, the government’s 2024 National Energy Storage Strategy requires wind projects to add battery systems. This move helps tackle intermittency issues and aligns with global ESG standards. However, supply chain issues for rare-earth metals and competition from Chinese turbine makers remain major challenges.

South Korea wind energy market is becoming more global. Companies are taking advantage of worldwide decarbonization trends by forming strategic alliances and exporting technology. In 2024, Seoul signed a KRW1.2 trillion ($900 million) deal with Denmark’s Ørsted. This partnership will co-develop the 600 MW Southwest Offshore Wind Complex. It combines Danish turbine design skills with Korean marine engineering expertise.

SK Telecom also formed a joint venture with Siemens Gamesa. Their goal is to launch AI-powered wind farms in Vietnam and the Philippines, aiming at Southeast Asia’s growing demand. At home, the Export-Import Bank of Korea (KEXIM) has introduced low-interest loans for SMEs that supply parts for international wind projects. This move helps build a competitive local supply chain. These initiatives are supported by the 2024 Korea-EU Green Alliance, which gives Korean wind firms better access to European markets. However, geopolitical tensions in the Indo-Pacific and changing steel prices could threaten export growth. 

This situation requires diversified trade agreements and strategies for vertical integration. The South Korean wind energy market is changing rapidly. It is moving from pilot projects to large-scale installations and using new technologies. Early efforts focused on small onshore projects, but now the focus is on offshore wind, especially floating systems. These systems made up 43% of new capacity in 2024. The government has labeled wind energy equipment as “national strategic technology.” This has led to increased R&D investments, with wind-related patent filings rising by 18% year on year. 

Corporate power purchase agreements (PPAs) are also growing in popularity. Tech giants like Naver and Kakao aim to power their data centers with 100% renewable energy by 2030. In mid-2024, the 200 MW Tamra Offshore Wind Farm was completed. It uses dual-axis tracking turbines to boost energy output in low-wind conditions. However, challenges remain, such as concerns about bird biodiversity and labor shortages in specialized engineering.

Proactive steps are being taken to address these risks. AI-driven environmental impact assessments and vocational training programs are part of the solution. As South Korea aims to become a leader in next-generation wind technology, its ability to balance growth with ecological and social issues will shape the market’s future after 2024.

South Korea Wind Energy Market Segmentation: 

The report segments the market based on product type, distribution channel, and region:

Study Period:

Base Year: 2024

Historical Year: 2019-2024

Forecast Year: 2025-2033

Breakup by Location of Deployment:

• Onshore
• Offshore

Breakup by Region:

• Seoul Capital Area
• Yeongnam (Southeastern Region)
• Honam (Southwestern Region)
• Hoseo (Central Region)
• Others

Competitive Landscape:

The market research report offers an in-depth analysis of the competitive landscape, covering market structure, key player positioning, top winning strategies, a competitive dashboard, and a company evaluation quadrant. Additionally, detailed profiles of all major companies are included.

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