South Korea’s Renewable Energy Transition: Challenges and Opportunities

Multiple studies have identified several factors that slow South Korea’s renewable energy transition, including those by Chen et al. (2014), Park et al. (2019), and RE100 (2025). This thesis utilizes the PESTLE and SWOT analytical frameworks to examine in more detail and prioritize the key factors influencing Korea’s renewable energy transition. PESTLE identifies the most significant factors, while SWOT determines how these factors have either positively (accelerated) or negatively (slowed) impacted Korea’s renewable energy transition. Using those frameworks, through an examination of published primary and secondary sources and interviews of industry, legal, and investment experts, this thesis argues that the most significant factors behind Korea's slow transition are inefficient government policies on climate and energy, overreliance on and financial support of fossil fuels by incumbent industrial firms, other stakeholder pushback (e.g. opposition from local industries and residents), complicated permitting processes, and grid limitations (e.g. lack of new interconnection priority for renewables). This thesis also suggests that there are significant opportunities for the Korean government and private sector stakeholders to leverage Korea’s strengths and accelerate its renewable energy transition. Due to the quasi-governmental nature of Korea’s energy system, the private sector cannot efficiently accelerate Korea’s renewable energy transition on its own. The Korean government must actively coordinate and lead other stakeholders to solve the significant challenges facing Korea’s renewable energy transition.