What South Korea’s Next President Must Do to Address the Climate Crisis
insights 2025-05-02
Public Finance Commentary Renewable Energy

What South Korea’s Next President Must Do to Address the Climate Crisis

SFOC’s 10 Climate Solutions

Hyezin Yang Head

In recent times, countless individuals have been affected by some of the worst wildfires in South Korean history. In their wake, the climate crisis is no longer some distant story; it has become a part of our daily reality. And it’s not just wildfires. The impacts of the climate crisis, including extreme weather events, heavy rains, heatwaves and ecosystem destruction, are causing economic and social damage throughout our society. Ultimately, the climate crisis is a problem that threatens not just the environment, but our economy and our very survival – and our future depends on how we respond to it.

Yet, we continue to treat the climate crisis as just another environmental issue. Our lives can only change when policies change – and for that to happen, politics – and society need to change first. We can’t afford to keep delaying any longer. 

To the next president, we here at SFOC propose 10 “climate solutions” to navigating the current crisis, which are as follows: 

1️⃣ Take responsibility for future generations, starting with a climate constitution 

The climate crisis cannot be solved through short-term measures. The Korean Constitution, which serves as the country’s foundation and guiding compass, must explicitly address the climate crisis. The country’s responsibility to respond to the climate crisis must be clearly defined through constitutional amendments, and an independent governance body must be established to oversee a climate economy control tower and renewable energy policies. 

  • Explicitly address the climate crisis in the constitution  

  • Establish an independent governing body for energy policy 

  • Establish a climate economy control tower 

📌 Climate response must be at the center of law and politics. 

2️⃣ Enhance South Korea’s climate competitiveness through early GHG reduction 

South Korea needs to set a GHG reduction target of more than 60% by the year 2035 and establish a management system for non-CO2 greenhouse gases like methane. At the same time, we must reform the emissions trading system to provide incentives for reduction across all industries.  

  • Reduce GHG emissions by 60% by 2035

  • Manage non-CO2 GHGs, including methane 

  • Reform the existing emissions trading system 

📌 Ambitious reduction targets equal national competitiveness.

3️⃣ Restructure the economy through carbon-neutral industries – rebuild Korea as an export powerhouse 

 Responding to climate change is both a crisis and an opportunity for the economy. The national semiconductor industrial complex must be built on a renewable energy foundation, and a demand for green steel must be created to transform the steel industry into a future-oriented one. Further rollout of electrified vessels and the establishment of green shipping corridors must also be rapidly supported.   

  • Create a renewable energy-based national semiconductor industrial complex 

  • Facilitate the creation of green steel demand 

  • Expand support for eco-friendly vessels and shipping  

📌 Climate response is the key to future-oriented industries. 

4️⃣Usher in a real transition by phasing out coal 

 Converting old coal-fired power plants to solar power and energy storage systems (ESS), rather than LNG, will save more than 35 trillion won. Coal-fired plants must be replaced with renewable energy infrastructure, and an independent transmission system is essential for ensuring public ownership and grid efficiency.  

  • Create three major packages aimed at ending coal-fired power generation by 2035 

  • Establish an independent transmission and distribution operator 

  • End the indiscriminate expansion of LNG 

📌 There can be no carbon neutrality without coal phase-out. 

 

5️⃣ Triple renewable energy through regulatory innovation 

 The tripling of renewable energy capacity must be preceded by regulatory reform. Three key tasks must be accomplished to ensure this: abolishing solar separation distancing regulations, shortening permitting timeframes for offshore wind, and relaxing height restrictions.  

  • Remove separation distancing regulations for solar power 

  • Shorten the offshore wind permitting process timeframe 

  • Ease height restrictions for renewables 

 📌 Expand renewable energy via a predictable roadmap! 

 

6️⃣ Invest generously in future-oriented technologies  

R&D investment in sustainable future-oriented technologies like hydrogen-reduced steelmaking and e-methanol production is urgently needed to respond to carbon border taxes and secure the competitiveness of low-carbon industries. The functions of the Climate Response Fund must also be strengthened.   

  • Support R&D in hydrogen-reduced steelmaking and e-methanol 

  • Strengthen the Climate Response Fund 

  📌 Climate technology is our economic survival strategy. 

7️⃣Use the people’s funds for the people’s future – facilitate a climate transition within the national pension system 

 National pensions aren’t simply financial funds; they should also serve as a strategy protecting citizens’ futures. A transitioned pension system includes strengthening coal divestment standards, prioritizing the exercise of shareholder rights in companies with high climate risks and enhancing the measurement and management of financial emissions. When pensions change, companies follow.   

  • Raise the bar on coal divestment  

  • Promote climate risk-informed investment strategies 

  • Introduce a financial emissions management framework  

📌 Our pensions, our future. 

 

8️⃣ Scale up the decarbonization of public finance 

 South Korea’s public financial institutions must divest from fossil fuels. The Export-Import Bank of Korea (KEXIM) and the Korea Trade Insurance Corporation (KTIC) should shift their focus to investing in clean energy.  

  • Halt KEXIM and KTIC’s fossil fuel investments 

  • Expand public investment in renewable energy projects 

 📌 Investing in coal with taxpayers' money? No more! 

9️⃣Establish a new model for balanced regional development – Creating energy- transition oriented local economies 

A regional energy transition needs to be accompanied by a sustainable job market. We can revitalize regional economies by replacing LNG infrastructure investments with those in renewable energy industries and carbon-neutral technologies.  

  • Convert existing coal districts into renewable energy industrial complexes 

  • Develop a decentralized energy ICT system ("K-Octopus")

  • Further develop smart agriculture and region-specific carbon-neutral technologies 

 📌 Breathe new life into dying regions! 

 

🔟 Ensure sustainability for all 

 Protecting and restoring is essential not just for preserving biodiversity, but also for responding to the climate crisis. We need integrated food, energy and environmental policies that encompass low-carbon diets, increasing the consumption of alternative proteins and the conservation of our natural ecosystems.  

  • Introduce a natural resource cap-and-trade policy and phase out biodiversity-harming financing 

  • Ensure a just transition away from the biomass industry 

  • Promote low-carbon diets and alternative proteins 

The climate crisis is a matter of life or death for us, and the choices we make will determine our future. Changing the president isn’t the end-all-be-all solution, but with political will and strategies that match the scale of this crisis, we can certainly make steps towards overcoming it.  

 Now is the time to choose a president who is serious about responding to the climate crisis.  

 📌We support a climate-oriented election!   

📌 We no longer have the luxury of delaying our climate change response.   

📌 For the future of ourselves and our children, we must act now

 

Support SFOC in creating winning climate movements!