Korea's Economy
From the Issue
Korea's Economy Volume 29About Korea's Economy
Korea’s Economy is KEI’s annual journal publication dedicated to the key issues of the day for the Korean economy. Articles in Korea’s Economy are designed to give the casual, but informed reader insight into issues related to Korea’s markets and financial institutions, economic reform, economic relations with the wider world, and North Korea. It is published jointly each year with the Korea Institute for International Economic Policy.
The health and strength of Korea’s manufacturing-intensive, export-led economy remains almost entirely dependent on access to energy imports; in particular, oil from the Middle East. This continues to leave the country’s strategic outlook exposed and vulnerable. The “low carbon, green growth” vision of the previous presidential administration emphasized supply-oriented policies, focusing on growth and investment in nuclear and renewable energy. However, as Korea revises its National Energy Plan, indications are the Park Geun-hye administration will favor demand-side solutions. Additionally, previous plans to expand nuclear energy capacity will likely be canceled and less emphasis on renewables is expected. The revised plan will set the country on a new, strategic five-year trajectory that will profoundly impact its politics, economy and energy security. To provide context to the impending shift in policy, this paper will examine Korea’s energy portfolio and assess its level of dependency and energy security vulnerability. Additionally, the paper will examine recent energy policies and strategies as they have evolved up to the current administration. Finally, the paper will gauge the strategic direction Korea is set to embark upon as it seeks to enhance its energy security while carefully balancing impacts to social equity, the environment, and the Korean economy.