Korea

  • Power demand and supply outlooks (Cost-based pool & LNG price setting)

  • Institutional and regulatory frameworks (Privatisation & FRC)

  • Generation mix and fuel security (Six dominant Gencos)

  • Private sector participation (IPPs and self-generators)

  • Renewable energy and efficiency promotion (Fossil fuel replacement & Cogen)

  • Cross-border power trade opportunities

Governance & Regulation

South Korea’s power sector is overseen by the Ministry of Trade, Industry and Energy (MOTIE), which sets energy policies, long-term plans, and regulations. The Korea Energy Agency (KEA) supports efficiency and renewable initiatives, while the Electricity Regulatory Commission (under MOTIE) manages tariffs, licensing, and compliance. National energy strategies are framed through the government’s multi-decade Basic Plans for Electricity Supply and Demand.

Market Structure

Korea operates a single-buyer wholesale market model through the Korea Power Exchange (KPX). Generators sell electricity into the pool, and the Korea Electric Power Corporation (KEPCO), the dominant state-owned utility, is the principal purchaser. KEPCO subsidiaries manage distribution, while KPX handles market operation and system dispatch. Retail competition has not been introduced; electricity sales to end-users are still monopolized by KEPCO.

Private Participation & Renewables

While KEPCO and its subsidiaries dominate, private Independent Power Producers (IPPs) are allowed and play a growing role, particularly in LNG, solar, and wind projects. Korea has set ambitious renewable targets under its Renewable Portfolio Standard (RPS), requiring large power producers to source a percentage of electricity from renewables. Offshore wind, solar PV, and hydrogen are emerging as key focus areas, alongside government-driven energy efficiency measures.

Industry Participants

  • KEPCO: The state-owned giant, responsible for transmission, distribution, and electricity sales.

  • KPX (Korea Power Exchange): Market operator and system dispatcher.

  • Generation Subsidiaries of KEPCO: Six gencos (e.g., Korea Hydro & Nuclear Power, Korea South-East Power, Korea Midland Power, etc.) account for most capacity.

  • Private IPPs: Increasingly involved in renewables and LNG-fired plants.

  • Renewable Developers: Both domestic and foreign players investing in offshore wind and large-scale solar projects.

Cross-Border Trade Opportunities

South Korea currently operates as an isolated grid with no physical electricity interconnections to neighboring countries. However, the government has studied proposals for a North-East Asia Super Grid, linking Korea, China, Japan, and Mongolia to access renewable resources. While politically challenging, such projects could play a role in Korea’s future energy diversification and decarbonization efforts.