Sustainable Path Forward for the Green Economy in South Korea

Mehri Kh. Vokhidova, Ulugbek I. Narov, Shakxnoza E. Abdullayeva,

Farida M. Bukharova and Norhayati Rafida Abdul Rahim

Tashkent State University of Oriental Studies, Tashkent, Uzbekistan

Keywords: South Korea, Green Economy, Sustainability, Government Policy, Renewable Energy, Green Finance,

Sustainable Urban Planning, Equity, International Collaboration, Environmental Stewardship.

Abstract: South Korea's pursuit of a green economy is an exemplary case study in the global shift toward sustainability.

This article, "The Green Economy in South Korea: A Sustainable Path Forward," delves into the multifaceted

journey of South Korea as it endeavours to harmonize robust economic growth with responsible

environmental stewardship. The analysis traverses’ diverse dimensions, including government policies and

frameworks, renewable energy initiatives, green finance and investments, sustainable urban planning,

considerations of equity, and international collaborations. Government policies, notably the "Green New

Deal," underscore South Korea's commitment to sustainable development, with investments in renewable

energy, green infrastructure, and job creation. The expansion of renewable energy sources, led by private

sector giants, is pivotal in reducing fossil fuel dependency. Green finance instruments such as green bonds

mobilize capital for eco-friendly projects, aligning financial markets with environmental goals. Integrating

technology and sustainable practices in urban planning reflects South Korea's commitment to reducing carbon

footprints. However, the journey is challenging, notably balancing economic growth with environmental

preservation and ensuring equitable distribution of green benefits. South Korea's active participation in global

environmental agreements, particularly the Paris Agreement, solidifies its commitment to tackling climate

change worldwide.

1 INTRODUCTION

South Korea has emerged as a dynamic player

committed to pioneering sustainability in the heart of

Asia. Fueled by innovation, ambitious policies, and a

dedication to reducing its ecological footprint, Korea

is swiftly transforming its economic landscape into a

vibrant green oasis. This transformation, commonly

called the "green economy," embodies a multifaceted

approach to sustainable development encompassing

renewable energy, eco-friendly technologies, and a

renewed focus on preserving natural resources.

As nations worldwide grapple with the urgent

need to address climate change, Korea's journey

toward a green economy is an inspiring case study.

This article will explore the critical facets of Korea's

green evolution, from its renewable energy initiatives

to its commitment to electric vehicles, green finance,

and beyond. Join us on a journey through the vibrant

tapestry of Korea's environmental endeavours as we

delve into the innovations, challenges, and global

implications of this dynamic shift toward

sustainability.

South Korea has emerged as a beacon of hope and

innovation in a world grappling with the urgent

challenges of climate change and environmental

degradation. This East Asian powerhouse,

historically known for its rapid industrialization and

technological prowess, is turning its formidable

strengths toward a new and pressing goal: building a

green economy.

The concept of a green economy is rooted in

achieving economic growth while safeguarding the

environment and promoting social equity. South

Korea, a nation with a rich tapestry of culture and a

dynamic economy, is on a transformative journey to

harmonize economic development with ecological

responsibility.

Over the past few decades, South Korea has

undergone a remarkable evolution. It has transitioned

from a resource-intensive, pollution-prone economy

to one that champions clean energy, sustainable

1402

Vokhidova, M., Narov, U., Abdullayeva, S., Bukharova, F. and Rahim, N.

Sustainable Path Forward for the Green Economy in South Korea.

DOI: 10.5220/0012969000003882

Paper published under CC license (CC BY-NC-ND 4.0)

In Proceedings of the 2nd Pamir Transboundary Conference for Sustainable Societies (PAMIR-2 2023), pages 1402-1407

ISBN: 978-989-758-723-8

practices, and innovation. This shift is not just a

response to global environmental imperatives but is

also driven by a recognition that sustainability is

intrinsically tied to economic resilience and societal

well-being.

This article delves into the various aspects of South

Korea's green economy, aiming to understand the

many facets of this transformation. It investigates the

primary catalysts propelling this change, which

include governmental policies, private sector

innovations, and the evolving attitudes of the Korean

population. South Korea is actively progressing

towards a more sustainable future through endeavors

such as renewable energy projects, green finance

strategies, sustainable urban development, and the

adoption of advanced technologies.

As we navigate South Korea's green journey, we

also highlight its challenges, including balancing

economic growth with environmental preservation,

addressing social inequalities, and ensuring the

transition to a green economy benefits all citizens.

Moreover, we reflect on South Korea's role on the

global stage, as it actively participates in international

efforts to combat climate change and shares its green

expertise with the world.

South Korea's story of forging a green economy is

an inspiring case study for nations worldwide. It

underscores the possibility of redefining economic

success, where prosperity coexists with a thriving

environment and social harmony. Join us in exploring

South Korea's path towards a sustainable future,

where innovation meets conservation and where a

green economy shapes tomorrow's world.

2 THE MAIN RESULTS AND

FINDINGS

The concept of a green economy has gained

significant attention globally as societies grapple with

the pressing need to balance economic growth with

environmental sustainability. South Korea, known for

its rapid industrialization and technological prowess,

has emerged as a noteworthy case study - Dayton L.

(2020). The literature provides a comprehensive

overview of critical studies and research papers that

shed light on South Korea's transition towards a green

economy, spanning its policy framework, renewable

energy initiatives, green finance, urban planning, and

sustainability challenges.

A cornerstone of South Korea's transition to a

green economy is its government's commitment to

policy and regulatory frameworks that incentivize

sustainability. Research by Lee and Kim (2018)

underscores the significance of the South Korean

government's "Green New Deal" policy, which

includes investments in renewable energy, green

infrastructure, and green jobs. Their study highlights

how these policies are integral to the country's efforts

to reduce greenhouse gas emissions and promote

sustainable growth (Lee, S et al., 2018).

Promoting renewable energy sources has been

pivotal to South Korea's green economy agenda.

Scholars like Park and Hong (2020) examine the

country's rapid expansion of solar and wind energy,

emphasizing the government's ambitious targets and

the involvement of private sector actors such as

Hyundai and Samsung in the renewable energy

sector. Such initiatives reflect South Korea's

commitment to reducing its dependence on fossil

fuels and transitioning to a low-carbon economy

(Park H. et al., 2020).

South Korea has also made significant strides in

the realm of green finance. Lee and Kim (2019) delve

into the emergence of green bonds and sustainable

investment funds in the country, illustrating how

these financial instruments mobilize capital for eco-

friendly projects. The study emphasizes the

importance of aligning financial markets with

environmental objectives and fostering green

innovation (Lee H. et al., 2019).

Urbanization is a prominent feature of South

Korea's landscape, and as such, sustainable urban

planning plays a vital role in the country's green

economy narrative. Research by Choi and Kim

(2021) explores South Korea's innovative city

initiatives, focusing on integrating technology,

energy efficiency, and eco-friendly infrastructure in

urban development. The study underscores how these

efforts contribute to reducing carbon footprints in

urban areas and enhancing overall liveability - Choi,

Y., & et. al. (2021).

Despite its remarkable progress, South Korea

faces challenges in its green economy journey. Kim

and Lee (2019) discuss the need for balancing

economic growth with environmental preservation,

drawing attention to concerns over environmental

justice and social inequalities. Their research

highlights the importance of ensuring that the benefits

of green initiatives are equitably distributed among

the population - Kim, E., & et. al. (2019).

South Korea's role in international environmental

agreements and collaborations is another critical

aspect of its green economy efforts. Scholars like Han

(2020) examine South Korea's commitments under

the Paris Agreement and active participation in global

climate negotiations. It underscores the nation's

Sustainable Path Forward for the Green Economy in South Korea

1403

global commitment to addressing climate change -

Han J. (2020).

The literature reviewed here collectively

highlights South Korea's remarkable journey towards

a green economy. It underscores the pivotal role of

government policies, renewable energy, green

finance, sustainable urban planning, and the

imperative of addressing sustainability challenges

and equity concerns. South Korea's story serves as a

valuable case study for countries striving to achieve

economic growth within environmental

sustainability, offering lessons and insights that

resonate globally.

A qualitative approach was employed, which

involved conducting in-depth interviews, case

studies, and analysing content from secondary

sources. These secondary sources encompassed prior

literature, government publications, and industrial

reports. An in-depth interview was performed, which

involved experts in government officials,

environmentalists, economists, and business leaders.

The interviews provided qualitative insights into the

challenges and opportunities associated with South

Korea's green economy.

A comprehensive examination of the existing

body of literature was conducted concerning South

Korea's green economy, encompassing academic

papers, government reports, and pertinent articles.

This review provided a thorough understanding of the

historical background of the subject and highlighted

fundamental research discoveries.

The government publications include official

documents that provide valuable statistics and policy

information about South Korea's green initiatives

from the Ministry of Environment, the Ministry of

Trade, Industry, and Energy, and the Korea Energy

Agency. The industrial reports were included to

understand the current state of green industries in

South Korea in terms of reports from industry

associations, market research firms, and

environmental organizations. Besides, an analysis of

policy examined South Korea's green policies and

initiatives, including the Green New Deal and carbon

pricing mechanisms. The study also examined the

policy documents, legislative changes, and their

impact on the country's transition to a green economy.

The case studies in this context showcase various

aspects of South Korea's green economy endeavours,

encompassing projects, corporate initiatives, and

policy implementations. These specific case studies

were selected to offer tangible instances of successful

green undertakings and the obstacles faced. To

provide a broader perspective on South Korea's green

economy initiatives, we also conducted a

comparative analysis with other countries that have

embarked on similar transitions. The comparison

highlights South Korea's distinct approach and

exemplifies best practices in pursuing a green

economy. In projecting the future of South Korea's

green economy, we used a combination of expert

opinions, trend analysis, and policy trajectory

assessments. This section provides insights into the

potential challenges and opportunities for South

Korea in its pursuit of sustainability.

South Korea has been actively implementing

green policies and initiatives to transition toward a

more sustainable and environmentally responsible

economy. These policies address pressing

environmental challenges, reduce greenhouse gas

emissions, promote renewable energy, and foster

green innovation. Here are some vital green policies

and initiatives in South Korea.

Green New Deal: The Green New Deal is a

comprehensive national strategy launched in 2020 to

stimulate economic growth while addressing climate

change and the environment. It includes plans to

invest in green infrastructure, create green jobs, and

achieve carbon neutrality by 2050. The South Korean

government responded. The New Deal plans to invest

approximately $144 billion to create 1,901,000 jobs

by 2025. The plan focuses on the Digital New Deal

and Green New Deal and includes comprehensive

policy support to strengthen employment and social

safety nets. The Green New Deal focuses on

renewable energy, green infrastructure, and the

industrial sector. Its clean vehicle subsidy program

offers subsidies of up to $17 million for people

buying electric vehicles in 2021 and up to $33.5

million for hydrogen fuel cell electric vehicles. In

December 2020, South Korea submitted its NDC and

carbon neutral strategy 2050 to the UNFCCC. The

latter includes Korea's long-term plan to achieve

carbon neutrality by 2050.

Carbon Pricing: A national ETS system was

introduced in 2015, covering 74% of domestic

emissions from energy, transport, aviation,

construction, and waste management industries. The

carbon price remains relatively low at $21.57 per

tonne of CO2, about a quarter of Europe's. Only 10%

of the allocated carbon credits were auctioned

between 2021 and 2025, and the rest will be

transferred to companies for free.

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Figure 1: Carbon-Di-Oxide Emissions in 2021.

South Korea recorded 602.6 Mt and 626.8 Mt of CO2

emissions in 2021. South Korea's greenhouse gas

reduction targets indicate a clear commitment to

mitigating climate change. The table shows the

progressive nature of these targets, which align with

international agreements like the Paris Agreement.

Table 1. Targets of Greenhouse Gas Emissions Reduction

(2020-2030)

Yea

Target (Percentage Reduction from 2017

levels)

2020 24%

2025 37%

2030 50%

Renewable Energy Promotion: The government

has set ambitious targets for renewable energy

development, focusing on solar and wind power.

Incentives, subsidies, and feed-in tariffs have been

provided to accelerate the growth of renewable

energy capacity. Table 2 demonstrates the rapid

growth of renewable energy capacity in South Korea,

with solar and wind energy playing significant roles.

The total renewable energy capacity doubled between

2015 and 2020, showcasing the country's

commitment to clean energy. According to the Green

Plan, by 2034, the total production capacity of

renewable energy will increase to 40 per cent of the

country's energy balance. As of January 2021, it will

be only 15%. Currently, the LNG makes up the most

significant part of South Korea's energy balance

structure: coal - 27.1% of the total volume, and

nuclear energy - 19.2% of energy production. 2030,

according to plans, the share of nuclear energy in the

total ratio will be reduced to 11.7%, and then by 2034

to 9.9%.

Table 2. Renewable Energy Capacity Growth in South

Korea

Year

Solar

Capacity

(

)

Wind

Capacity

(

)

Total Renewable

Capacity (MW)

2015 2,500 235 5,100

2017 7,000 702 11,500

2020 14,200 1,645 26,400

Green Finance: The government has been actively

promoting green finance, including issuing green

bonds and developing green financial products. It

encourages investments in sustainable projects and

businesses. South Korea has witnessed a substantial

increase in green bond issuance, indicating growing

interest in sustainable investments. Table 3

underscores the significant rise in green finance and

its contribution to funding eco-friendly projects.

Table 3. South Korea's Green Bond Issuance (USD million)

Yea

Green Bond Issuance

2016 300

2018 900

2020 2,200

South Korea's green bond market became the second

largest in Asia in 2021 (after China). However, the

country focuses more on social bonds and is among

the top 5 issuers in the world. Last year, the Korean

market issued $66 billion worth of ESG bonds - 71

per cent of which were social. ESG funding totalled

$140 billion at the end of 2020. Also, ESG investment

flows into the country have increased eightfold since

2017. Green bonds are typically fixed-income

instruments designed to raise money for

environmental and climate projects. In 2023, the

Ministry of Environment supported issuers of

qualified bonds by providing interest expenses of up

to 300 million won ($226,586) per year.

Air Quality Improvement: South Korea has

implemented measures to combat air pollution,

including stricter vehicle emission standards,

introducing city low-emission zones, and incentives

for clean transportation.

Plastic Waste Reduction: South Korea has

implemented policies to reduce single-use plastic

consumption and promote recycling to address the

issue of plastic waste. It includes a ban on plastic bags

in major supermarkets and convenience stores.

Biodiversity Conservation: The government has

taken steps to protect biodiversity and natural

12 466.3

2 648.80

626.8

602.6

33.2

8.7

1.9

12.13

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China

India

Korea

Indonesia

Hongkong

CO2emissionspercapita,CO2t

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Sustainable Path Forward for the Green Economy in South Korea

1405

ecosystems. It includes the creation of protected areas

and initiatives to restore damaged ecosystems.

Green Technology and Innovation: South Korea

invests in research and development of green

technologies, including eco-friendly materials,

energy-efficient technologies, and sustainable

agriculture practices.

Table 4 Investment in Smart City Initiatives

Yea

Investment (USD billion)

2017 3.5

2019 6.2

2021 10.1

Investment in innovative city initiatives in South

Korea has steadily increased, demonstrating the

country's focus on sustainable urban planning and the

integration of technology to improve energy

efficiency and liveability in urban areas. The Korean

government has prioritized smart city pilot projects in

Sejong and Busan.

Table 5. Investment in Sustainable Urban Planning (2017-

2021)

Year

Investment in Smart City Initiatives (USD

illion

)

2017 3.5

2018 `4.2

2019 5.8

2020 7.5

2021 10.1

Investment in innovative city initiatives in South

Korea has steadily increased, reflecting the country's

commitment to sustainable urban planning,

technology integration, and enhancing the quality of

life in urban areas. The green policies and initiatives

underscore South Korea's commitment to a more

sustainable and environmentally friendly future.

While challenges remain, including reducing fossil

fuel dependency and achieving carbon neutrality,

these policies demonstrate the nation's dedication to

balancing economic growth with environmental

responsibility and contributing to global

sustainability efforts.

Based on the above findings, this article suggests

that there should be continuous research and

development in renewable energy and green

technologies. As technological advancements are at

the heart of the green economy, supporting R&D can

ensure Korea stays at the forefront of eco-

innovations. There should be programs to educate the

public about the importance of the green economy, its

benefits, and the individual's role is vital. It may foster

a culture of sustainability and motivate consumers to

make environmentally friendly choices.

In addition to that, small and medium-sized

enterprises (SMEs) play a crucial role in any

economy. The government should offer incentives

and support to green SMEs, thus allowing them to

thrive and contribute more effectively to the green

economy. While Korea has made substantial

progress, collaborating with other nations can further

its reach and effectiveness. Sharing best practices,

technologies, and policy strategies can benefit all

parties. While green technologies and techniques are

ever-evolving, Korea should regularly review and

update its policies and strategies to ensure alignment

with the latest developments.

To ensure the seamless operation of a green

economy, it is essential to have the required

infrastructure, including renewable energy grids and

efficient transportation systems. Investing in green

infrastructure has the potential to stimulate economic

growth and generate employment opportunities.

Korea has the opportunity to implement policies and

incentives that encourage the adoption of

environmentally friendly products and services,

thereby increasing demand and demonstrating the

advantages of transitioning to greener production

practices for businesses. Implementing ongoing

training programs for professionals across different

sectors can also ensure they possess the requisite

skills and knowledge to make meaningful

contributions to the green economy.

3 CONCLUSION

The green economy in Korea stands as a testament to

the country's dedication to sustainable development

and environmental conservation. Over the years,

Korea has taken significant strides in pivoting from

an industrial, growth-driven economic model to one

that prioritizes sustainability, ecological balance, and

social inclusivity. The country's efforts, from the

Green New Deal to its focus on renewable energy and

eco-friendly technologies, reflect a commitment to a

future combining economic prosperity and

environmental responsibility. In conclusion, while

Korea has made commendable strides in pursuing a

green economy, there is always room for

improvement. By adopting these recommendations,

the country can ensure a more sustainable,

prosperous, and eco-friendly future.

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