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IEA Special  Korea 2020-Energy Policy Review
















                                                                          The government could leverage these
                                                                          concerns by pushing forward its agenda
                                                                          to  reduce  local  air  pollution  while
                                                                          simultaneously preparing the ground
                                                                          for the fast implementation of other
                                                                          elements of its energy transition policy.


                                                                          Local air pollution
                                                                          Korea has traditionally maintained a high
                                                                          level of oil and gas security, although
                                                                          the country hardly has any domestic
                                                                          production and no cross-country oil and
                                      Taxation                            gas pipelines.
                                      There are increasing concerns in Korea   It has consistently been in compliance
                                      about local air pollution and fine dust   with the IEA 90-day oil stock holding
                                      and they have become major social and   requirement. Korea has successfully
                                      economic issues. The Seoul Metropolitan   diversified the number of its oil and
                                      Area is among the most polluted cities   gas suppliers by taking advantage of
                                      in the world, and in 2017 Korea had the   changing  international  markets.  As
                                      highest fine particulate matter among   dependence on oil and gas supplies from
                                      OECD member countries. In 2018, the   the Middle East in 2018 was still 70%
                                      government implemented a breakthrough   and 43% respectively, the government
                                      policy towards addressing the issue by   is committed to pursue diversification
                                      giving local governments the authority   further.
                                      to temporarily suspend the operation of   Moving forward with the Green New
                                      coal-fired plants if air pollution and fine   Deal, energy security will increasingly
                                      dust exceed the legal limits set by the   be assessed against a broader set of
                                      government. To improve the levels of   parameters.
                                      air pollution, the government is further   Since the last in-depth review in 2012,
                                      committed to permanently close old coal-  Korea  has  significantly  accelerated
                                      fired plants that have been operating for   the  deployment  of  both  wind  and
                                      over 30 years.                      solar PV. However, as Korea started
                                      Korea’s  population  appears  keenly   off from a very low base, the share
                                      aware of the severity of the local air   of electricity generated from variable
                                      pollution problem and is demanding   renewable sources was just under 4%
                                      fast, and perhaps even drastic, actions.   in 2018. Reaching the 2030 and 2040
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