South Korea is accelerating its transition to renewable energy in response to the Iran war, which the country's energy minister, Kim Sung-hwan, described as a 'significant turning point' for national energy policy. The government has committed to achieving 100 gigawatts of renewable energy capacity by 2030, up from the current 37 gigawatts, according to the Renewable Energy Institute. This shift is underpinned by a 'growing national consensus' for a fundamental energy transition away from oil, as stated by Minister Kim in an interview with CNBC [1].
In the short term, South Korea has delayed the closure of two coal-fired power plants and reopened a nuclear plant to address immediate energy needs. Despite China's dominance in the solar component market, Seoul does not anticipate difficulties in expanding its solar power capacity. Kim emphasized that wind power requires significant lead time, so the country will prioritize solar power as the most effective short-term solution. South Korea derived only about 9% of its power needs from renewables in 2025, mostly from solar, according to IEA data [1].
Kim expressed confidence in South Korea's solar potential, noting that the country receives an average of 2,148 hours of sunshine annually, with provinces like South Jeolla and Jeju Island receiving even more. He contrasted this with Germany, suggesting South Korea is 'in a much better position' than Europe for solar generation. However, Kim acknowledged that South Korea's solar industry has contracted significantly due to China's market dominance. In 2024, Chinese solar cells accounted for over 95% of the South Korean market, up from 38% in 2019, while the domestic share fell from 50% to just 4% over the same period [1].
Despite these challenges, Kim highlighted South Korea's 'substantial technological prowess' in solar technology and pledged that government subsidies would be directed toward fostering and protecting the domestic solar industry. He stated, 'By structuring solar power profits to benefit our own citizens, we can turn this challenge into a blessing in disguise.' According to the China Photovoltaic Industry Association, China produced 93.2% of the world's polysilicon, 96.6% of wafers, 92.3% of photovoltaic cells, and 86.4% of PV modules in 2024 [1].
CONCLUSION
South Korea is leveraging the Iran war as a catalyst to accelerate its renewable energy transition, with ambitious targets for 2030 and a focus on solar power. While the country faces challenges from China's dominance in the solar supply chain, the government is confident in its domestic capabilities and is taking steps to support local industry. The market impact is medium, reflecting both the scale of the policy shift and the near-term energy security measures.