news 2025-09-03

[Press Release] $119.6 billion in heatwave damages linked to South Korea’s corporate emissions, report finds

Gas Energy Markets & Policy Steel Coal Renewable Energy

Just 10 corporations — including KEPCO and POSCO — drive nearly half of the nation’s greenhouse gas emissions

September 3, 2025 (SEOUL) – Heatwave-related damages in South Korea have reached an estimated $119.6 billion from 2011 to 2023, according to a new report from Solutions for Our Climate (SFOC). The study finds that just 10 companies are responsible for 43.5% of the country’s greenhouse gas (GHG) emissions during the same period, underscoring how a handful of state-backed utilities and industrial giants are driving the country’s climate footprint and its economic losses.

The report’s calculations are based on a methodology adapted from a peer-reviewed study published in Nature, providing scientifically validated estimates of corporate contributions to climate-related losses.

South Korea is a top 10 global emitter, based on cumulative GHG emissions from 1970 to 2022 (EDGAR database). This international ranking underscores the country’s critical role in global climate mitigation, and the report highlights how corporate actions—particularly from major emitters like KEPCO and POSCO—directly shape the nation’s ability to meet its climate goals.

Figure 1. Cumulative GHG emissions by country

The top emitter is steelmaker POSCO, followed by five subsidiaries of state-owned Korea Electric Power Corporation (KEPCO), which collectively rank 2nd through 6th. Other major contributors include Hyundai Steel, Samsung Electronics, Ssangyong C&E, and POSCO International, some of South Korea’s largest chaebols. Together, these companies represent a mix of private and state-backed corporations that dominate South Korea’s corporate emissions. POSCO alone accounts for $28.1 billion in heatwave-related losses, while KEPCO’s five subsidiaries represent $72.9 billion.

Figure 2. Cumulative GHG emissions and loss contributions by South Korea’s top 10 emitters

“Our study provides scientific evidence of how a specific company’s GHG emissions have contributed to climate-related impacts, such as heatwaves,” said Jeongho Jo, co-author of the report. “For the first time, it provides a framework for holding corporations accountable for their emissions, not just at the national level but also at the corporate level. If future analyses expand to include heavy rain, floods, or wildfires, the losses will be even greater. Korean companies and the government must proactively respond to emissions and implement meaningful reduction systems to meet their responsibilities in the climate crisis.”

Figure 3. Future outlook on GHG emissions in Net-zero vs. CurPol pathway (2025-2050)

Moreover, under a Current Policy (CurPol) pathway, cumulative heatwave-related damages from 2025 to 2050 could reach $518.9 billion. By contrast, a Net Zero pathway would limit damages to $204.7 billion—avoiding an estimated $314.2 billion in losses. The implication is clear: net-zero policies are not optional add-ons but an essential cornerstone of South Korea’s climate and economic resilience.

The report also highlights the distinctive responsibility of the power sector. A power producer’s fuel mix—coal, LNG, or renewables—determines the carbon intensity of electricity consumed across the economy, shaping the Scope 2 indirect emissions of virtually every other industry. Because KEPCO and its subsidiaries are state-owned, their accountability is different: emissions are ultimately borne by the public, and the company must act not only as a power supplier but also as a steward of climate-related financial risk.

This concentration of emissions has already sparked legal action. Recently, South Korean farmers sued KEPCO for climate-related damage caused by its emissions. The case represents the first corporate climate lawsuit in South Korea demanding financial redress for harm already suffered and aligns the country with a growing global wave of litigation holding major emitters accountable.

“This analysis goes beyond raising awareness,” said Soyeon Lim, co-author of the report. “It provides a starting point for using loss contribution calculations as a benchmark for policy, litigation, and investment decisions. Companies should now be held accountable not only for their emissions, but also for the damages caused by those emissions.” Lim added that this sends a strong signal for shifting discussions around climate harm compensation, which have so far been stalled due to unclear lines of responsibility.

The findings reinforce the need for governments and major corporations to embed climate accountability into energy transition strategies and ESG performance metrics, ensuring that state-backed emitters are held to a higher standard of responsibility.

ENDS.  

Solutions for Our Climate (SFOC) is an independent nonprofit organization that works to accelerate global greenhouse gas emissions reduction and energy transition. SFOC leverages research, litigation, community organizing, and strategic communications to deliver practical climate solutions and build movements for change.     

For media inquiries, please reach out to Yi Hyun Kim, Communications Officer, yihyun.kim@forourclimate.org. 

Share this insights

Yi Hyun Kim

International Communications Officer

yihyun.kim@forourclimate.org

Support SFOC
in creating winning climate movements!

Donate

Policy Research and Recommendations

We conduct in-depth analysis of climate, energy, industrial, and economic policies to propose viable policy alternatives and help bring about real policy change.
Legal Action and Litigation

We hold corporations and governments accountable when they delay climate action, utilizing a range of legal strategies, including litigation, to drive policy improvement.
Communications and Campaigns

We believe that the power to change the world lies with people. Through compelling messages and diverse communication channels, we raise public awareness about the climate crisis and inspire collective action.
International Cooperation

We understand that climate change knows no borders. Through networking and collaboration, we work with global environmental organizations to promote change at the international level.

Policy Research and Recommendations

We conduct in-depth analysis of climate, energy, industrial, and economic policies to propose viable policy alternatives and help bring about real policy change.
Legal Action and Litigation

We hold corporations and governments accountable when they delay climate action, utilizing a range of legal strategies, including litigation, to drive policy improvement.
Communications and Campaigns

We believe that the power to change the world lies with people. Through compelling messages and diverse communication channels, we raise public awareness about the climate crisis and inspire collective action.
International Cooperation

We understand that climate change knows no borders. Through networking and collaboration, we work with global environmental organizations to promote change at the international level.

[Press Release] $119.6 billion in heatwave damages linked to South Korea’s corporate emissions, report finds

Related content

Hyundai Has a Chance to Lead Asia’s Auto Transition — But Time Is Running Out

From Words to Data: Bridging Hyundai’s Climate Commitments and Disclosure

VPPs: The Key to Korea's Transition to a Renewable Energy-Based Power System

Accelerating Renewable PPAs in South Korea: 2025 Regulatory Updates and Unresolved Challenges

Speed Bumps on the Renewable Energy Highway: Minimum Generation Levels of Thermal Power Plants

From Policy to Purchase: Korea and Japan's Green Steel Public Procurement Strategies

No New Bonds, But No Justice Either

Driving Hydrogen-Based Steelmaking in South Korea: Focus on Hydrogen Sourcing

Can the Korean Semiconductor Industry Meet its Renewable Energy Targets? Policy Recommendations

World Environment Day, June 5

Financing the Climate Crisis: South Korea’s Global Fossil Fuel Footprint

No Room for More: Why LNG Carriers Are a Climate and Financial Risk

Navigating the Blue Future: SFOC at the 2025 Our Ocean Conference

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

Analyzing Korea’s 2035 NDC GHG Emissions Reduction Pathway through an Integrated Assessment Model

The World is Saying Goodbye to Coal. When Will Korea?

Capitalizing on Coal: How Global Investors and Underwriters Enable KEPCO to Abandon the Sustainability Path

Moving Away from Coal: 2025 POSCO Holdings Climate Risk

Retracing the Steps of the LNG Trade: Why Canada's First Nations Came to Korea

South Korean “Green Premium”, Missing the Mark on Global Emissions Accounting Standards

Green Premium - Out of Synch with Global GHG Protocol Standards

REthinking Hyundai’s ‘eco’ steel: How fossil fuels threaten the brand

Stronger Together: Unlocking Community Power for Lasting Change

Hyundai Steel's Insufficient Decarbonization Roadmap: A Setback to Hyundai Motor Company’s Net Zero Ambitions?

Missing points of “South Korea’s East Sea Blue Whale Project”

Socio-economic Impacts of Energy Transition in Chungcheongnam-do

Extending the Lifespan of Gwangyang No.2 Blast Furnace: A Backward Step for Carbon Neutrality

Still Adrift: Updated assessment of the global energy transition's impact on the LNG shipbuilding industry

True Climate Impact of LNG Carriers

South Korea's PPA System: Status and Opportunities for Renewable Energy Development

Billions Off Course: Japan's Oil and Gas Financing Fueling the Climate Crisis

Floating Doubt: The Risks of FSRUs in Expanding Methane Gas

Floating Pipelines Fuelling the Fossil Fuel Crisis: LNG Carriers

Green Premium or Greenwashing?

Samsung Electronics’ RE100 Ambitions and South Korea’s Yongin Semiconductor Cluster

Enabling the Green Steel Future - Unlocking Government-led Investment in Core Technology Development for Carbon Neutrality

Green Steel Economics - Comparing Economics of Green H2-DRI and Traditional Steelmaking Around the World

Issues with Fossil Fuel-Based Yongin National System Semiconductor Industrial Complex

Improving the Governance of the Power System to Scale Up Renewables

End the Free Emissions: Recommendations for Reforming K-ETS Based on Market Activation Scenario Analysis

Three Unseen Flaws of the Boryeong Blue Hydrogen Project in South Korea

Threat of Toxic Substances: Increased Particulate Matter and Health Hazards from Ammonia Co-firing

[Brief] South Korea’s international public finance continues to block a just energy transition

Exploring Climate Risk and Its Potential Financial Impacts with POSCO Holdings

POSCO Profile No. 2 - The Journey Toward Greenwashing: Greenate

Total Turmoil: Unveiling South Korea's Stake in Mozambique's Climate and Humanitarian Crisis

LNG Carriers: The Floating Pipeline Powering Global Gas Expansion - Unveiling its Hidden Enablers

Current Issues in KPX’s Governance and Policy Proposal for Sustainable Change

POSCO Profile No. 1 - Coal Tomorrow with POSCO: Doubts Rising on Korean Steelmaker’s Net-Zero Future

[Report] Financing a Paris-Aligned Coal Exit in South Korea

High and dry:The global energy transition's looming impact on the LNG and oil shipbuilding industry

Betting on a Sinking Ship: Banks Behind the Barossa Gas Field’s FPSO

Industry Trends Brief No.1: Korean Government's Low Carbon Steel Production Strategy

Clean power in South Korea: A roadmap to zero fossil gas in South Korea’s power sector

[CREA-SFOC] Unveiling the Truth Behind Blast Furnace Pollution_South Korea

에너지 안보와 탄소중립을 위한 공정한 전력시장 발표자료집

[Consultation Brief] No Room for New Gas in South Korea

Jeju's 2030 Carbon-Free Vision Begins With Renewable Curtailment Freedom

Unbalanced Power Market: Analysis of how market structures discriminate against demand response in favor of gas power generation

Unveiling Fossil Greenwashing: Hidden Emissions of Korea's Hydrogen Scheme

[이슈브리프] 한전 적자 부추기는 전력시장 보상제도와 거버넌스

Revisiting Korean Green Public Procurement Policies to Promote Green Steel Demand

Accelerating Corporate Renewable Electricity Procurement in Korea

[ISSUE BRIEF] Fossil Fuels, the Main Culprit behind KEPCO’s Deficit

Transforming the Korean Power Market to Reduce Renewable Curtailment

Steel Sector Pathways for Korea's 2050 Carbon Neutrality

RE100 Scheme Left Stranded, with Focus on High Network cost and Unreasonable Guidance on Trilateral PPAs

[이슈 브리프] 좌초되는 한국형 RE100 제도: 망이용료와 제3자 PPA를 중심으로

Opportunities and Challenges for the Steel Industry to Become Carbon Neutral by 2050

The South Korea Steel Industry and Carbon Neutrality: Responses, Issues and Policy Recommendations

[토론회] 한국형 녹색분류체계(K-Taxonomy), 무엇이 녹색경제활동인가

Bridge to Death: Air Quality And Health Impacts of Fossil Gas Power

[이슈 브리프] 탄소포집, 이용 및 저장기술(CCUS) 현황과 문제점

KR-DE Road to 2050 : Financing Clean Energy Transition

[이슈 브리프] 탈석탄 투자 가이드라인

[이슈 브리프] 신설 석탄발전소 가치평가 결과와 시사점

Fueling the Climate Crisis_South Korea's Public Financing for Oil and Gas

Employment opportunities from a coal-to-renewables transition in South Korea

Support SFOC
in creating winning climate movements!