• Transition to clean energy could double jobs and boost GDP by $3.56 billion by 2035 

• 79 civil society organizations around the world urged the South Korean government to redirect public finance towards clean energy during COP30. 

November 17, 2025 (SEOUL) – A new report by Solutions for Our Climate (SFOC) and Green Energy Strategy Institute (GESI) finds that 74.5% of South Korea’s public export finance is dominated by fossil fuel projects. With approximately $10 billion in annual fossil fuel financing, Korea surpasses Japan’s $6.9 billion and remains the major Asian economy without any commitment to ending this support. 

From 2020 to 2024, Korea's major public export finance agencies—the Export-Import Bank of Korea (KEXIM), Korea Trade Insurance Corporation (K-SURE), and Korea Development Bank (KDB) —provided $45.4 billion to energy-related projects. Of this amount, three-quarters were provided for Korean companies’ oil and gas EPC contracts and overseas fossil fuel projects.  

Figure 1. Aggregate value and composition of Korea’s public export finance from 2020 to 2024 

While most major Export Credit Agencies (ECA) around the world have announced specific timeline to phase out fossil fuels projects, Korea’s finance institutions move in the opposite direction. Although KEXIM, K-SURE and KDB have all committed to achieve carbon neutrality by 2050, none of them have yet presented concrete plans.  

With global clean energy expected to expand in the coming decades, continued investment in fossil fuel not only exposes Korea to the risk of stranded assets, but also undermines the opportunity to capture the economic momentum under a clean-energy driven world.   

More Jobs, More Value in a Clean Energy Future 

According to the report’s first-ever quantitative assessment , under the Net-Zero Emissions (NZE) scenario—when public export finance grows in line with global investment trends consistent with the IEA’s 1.5 °C pathway—the total value added supported by Korea’s public export finance can reach $7.1 billion in 2035, a 133% increase over the Business-as-Usual (BAU) scenario.  

Furthermore, expanding the clean-energy industry is expected to deliver substantial labor-market benefits. Under the NZE scenario, economy-wide employment supported by public export finance reaches 110,616 full-time equivalent (FTE) jobs in 2035—115% higher than under the BAU case. Most of this increase comes from clean-energy industries, which generate 79,406 FTE jobs in contrast to just 5,812 FTE under BAU. 

These findings indicate that scaling up clean-energy investments would deliver strong long-term economic returns, with battery manufacturing emerging as the largest driver of clean-energy impacts. In contrast, continued investment in fossil fuel, especially LNG carriers and refining/petrochemical projects poses risks of stranded assets and declining long-term value. 

By 2040, if South Korea shifts fully from fossil fuels to clean energy while substantially expanding domestic clean-energy industry competitiveness each $740,000 (KRW 1 billion) in public export finance could generate $480,000 (KRW 650 million) in domestic value added and support 6.59 FTE jobs. 

Boram Kim, Senior Researcher and lead author at GESI, said “The report’s findings clearly show that the global clean-energy transition is an economic opportunity for Korea. Aligning export-credit policies with global decarbonization goals is therefore both a climate imperative and an economic necessity for sustaining Korea’s export-driven growth. Directing export finance toward clean energy—especially across the battery value chain—while strengthening domestic competitiveness will be critical to securing resilient long-term growth for the Korean economy in a decarbonizing world.” 

International Pressure Mounts at COP30 

To strengthen economic resilience and reduce dependence on fossil fuel industries and imports, South Korea must shift direction now. During the first week of COP30 in Belém, 79 civil society organizations sent an open letter to President Lee Jae-myung, urging the Korean government to join the Clean Energy Transition Partnership (CETP). The letter highlights the financial risk of continued fossil fuel investment and emphasizes that joining CETP would commit to redirecting public finance towards clean energy and end public support for the unabated fossil fuel energy sector. 

Adam McGibbon, Campaign Strategist at Oil Change International, said "Korea's new government has an opportunity to end the climate mistakes of the last government. Joining the CETP would be a huge positive international signal, as well as promoting the clean technologies of the future and protecting Korean taxpayers from stranded assets caused by risky overseas fossil fuel projects. The time is now - Korea should join with Canada, Australia, the UK, and many EU countries in the CETP immediately." 

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.  

Green Energy Strategy Institute (GESI), established in 2009, is an independent think tank that provides expertise dedicated to enhancing South Korea's energy system and promoting the expansion of renewable energy. 

For media inquiries, please reach out to Yu-huan Yin, Communications Officer, at yuhuan.yin@forourclimate.org