Around the world with Team Norway: South Korea emerges as a major floating wind market

South Korea is surrounded by water, giving it great potential for offshore wind development. The country’s west coast has shallow waters suitable for bottom-fixed turbines, while the east coast, where the waters are deeper, is more suitable for floating wind turbines. This unique landscape creates significant opportunities for international collaboration.

“South Korea is expected to secure a large portion of global production, and there are high-potential areas where the industries in Korea and Norway can cooperate in developing offshore wind,” states Gunn Kim, Senior Market Advisor at Innovation Norway’s office in South Korea.

Globally, 7.3 gigawatts (GW) of floating wind are expected to be installed by 2030, of which Korea will account for as much as 2.8 GW.

South Korea and Norway have a history of collaboration that dates back almost 50 years. It started in the 1970s when Korean shipyards, including Hyundai, Samsung and Daewoo, were established. Norwegian shipowners and oil companies, such as Equinor, began building vessels and oil and gas platforms in these shipyards.

Since then, Korea has excelled in building such structures, while Norway has developed extensive expertise in operating them. This relationship can be transferred to the offshore wind sector, where Korea builds the structures, and Norway contributes its operational expertise.

“Earlier this year, I oversaw the Global Growth Programme for the offshore wind market led by Innovation Norway. We brought 10 Norwegian companies that were interested in the Korean market here to meet with major industry players and government officials and to participate in site tours and B2B meetings,” says Kim.

Norwegian expertise in offshore wind is highly sought-after in Korea, and Norway can deliver advanced technology, durable equipment and world-class services in many areas.

As the offshore wind market is still in an early phase, particularly for floating wind, Kim believes there are significant opportunities for Norwegian companies to get on board from the start.

“One of the leading floating wind projects in Korea is in Ulsan, on the east coast. If this project materialises as planned, it could be one of the first large-scale floating wind farms in the world. Norwegian companies, particularly those with expertise in marine operations, cable installation and mooring, are crucial for these developments.”

Like Norway, South Korea has declared its ambition for net-zero emissions by 2050. As one of the top 10 economic powers in the world, South Korea feels a strong responsibility to address global issues such as climate change.

“Economically, Korea is a high-energy consumer – it’s ranked number six among OECD countries, and over 60 per cent of that energy is used for industrial purposes. More than 90 per cent of Korea’s energy is imported, with a significant portion being fossil fuels. So, with its climate commitments and ambitions, Korea has to make changes,” says Kim.

Today, only about 9 per cent of Korea's energy mix comes from renewable sources, but the government aims to increase this to over 30 per cent by 2036. Offshore wind is expected to play an important role in this transition, with a government target of 14.3 GW of offshore wind by 2030.

Korean companies are looking not only at the domestic market but also at opportunities across Asia and the APEC region. The government is also nurturing this industry for future growth.

“Exporting energy is definitely an ambition. Offshore wind is seen as a future industry where Korea can leverage its existing strengths in steel manufacturing and heavy industries,” he says.

The South Korean government is seeking to exert greater control over the development of offshore wind projects, with the aim of reducing the risk faced by developers. Korea currently has an “open door” development scheme, which contrasts with the approach taken by countries like Norway.

“Under this scheme, individual developers are responsible for selecting locations, assessing wind conditions, dealing with stakeholders such as local communities and fisheries, and conducting environmental impact assessments. This places a significant burden on developers, who must bear the associated risks and costs,” says Kim.

The Korean government is now looking for ways to achieve a more streamlined and controlled process. This includes the potential introduction of a “one-stop shop” process, which would simplify and centralise the approval of necessary licences and permits.

Additionally, there is talk of the government designating specific zones for offshore wind development, similar to Norway’s approach. This would involve the government taking on some of the initial development tasks, such as assessing wind strength, evaluating environmental impacts and ensuring grid connection feasibility.

The proposed changes, which are part of a special act on offshore wind development currently under discussion in the National Assembly of the Republic of Korea, aim to provide greater clarity and certainty for developers and investors. By reducing the risks and uncertainties associated with the current process, the government hopes to encourage more investment in the sector and ensure that offshore wind projects are developed in a more coordinated and efficient manner.

“Although this bill has been under discussion for several years, there is renewed optimism that it may be finalised in the near future, possibly by the end of the year,” concludes Kim.

With strong government support, favourable geography and a history of industrialisation, South Korea is well on its way to becoming a key player in the global renewable energy transition, in fruitful collaboration with its long-time partner Norway.