South Korea imports most of the energy it consumes. Methane released during the production, processing, and transport of fossil fuels consumed in South Korea also adds to global atmospheric concentrations. Methane management in South Korea therefore cannot be limited to asking how much is emitted within its borders; it must also account for the methane emissions driven by the country’s energy consumption across global supply chains.

This analysis estimates two dimensions of the economic burden associated with methane. First, using South Korea’s average 2024 LNG import price as a benchmark, it estimates the fuel value of methane released during fossil fuel production. As the principal component of natural gas, methane emitted to the atmosphere represents energy that could otherwise have been put to productive use. This is an estimate of the energy value and economic scale of wasted methane—not a claim about actual trading losses or fully recoverable revenue. Second, the analysis estimates the heatwave-related climate damage costs that methane emissions impose on South Korean society. Together, the two costs amount to approximately USD 3.51 billion (KRW 5.30 trillion) per year.

To reduce this wasted methane, South Korean importers of oil, gas, and coal should first disclose methane emissions arising at the production stage. Companies and the government should then establish targets and standards for managing methane across entire supply chains. Finally, fossil fuel importers should require producers to implement methane- abatement measures. South Korea has already joined the Global Methane Pledge and established a domestic methane-reduction target. The next step is to translate this approach into procurement standards and corporate disclosure, and to extend it beyond LNG to imported crude oil and coal.

As summers grow hotter, South Korean companies and the government have an opportunity to demonstrate broader climate leadership.