- A Paradigm Shift in Offshore Wind Deployment
South Korea is strategically leveraging its geographical advantage as a peninsula to establish offshore wind as a cornerstone of its carbon neutrality goals. The government has recently refined its deployment targets and overhauled the regulatory framework to ensure execution
- Deployment Targets
A concrete roadmap has been established to deploy 10.5 GW (including projects under construction) by 2030 and achieve a total installation of 25 GW by 2035. - A Shift in Framework
Moving away from the legacy "Open-door" policy—where private developers independently identified sites and managed permitting—the government has addressed chronic delays and stakeholder conflicts. In February 2025, the National Assembly passed the "Special Act on the Promotion of Offshore Wind Power" (the "Special Act"), signaling a transition to a state-led planned development model.
2. Legacy Multi-layered Permitting Framework (Current System)
Until the full implementation of the Special Act (scheduled for late March 2026), offshore wind projects in Korea are governed by three primary regulatory pillars:
- Electric Business License (Electric Utility Act)
To prevent speculative site hoarding, developers must submit at least one year of wind resource measurement data. A "validity period" has been established, requiring the license application to be filed within three years of obtaining the wind measurement permit. - Public Use Area Occupation and Use Permit
This is a critical bottleneck. Permits for territorial waters are granted by local municipal heads, while permits for the Exclusive Economic Zone (EEZ) fall under the jurisdiction of the Ministry of Oceans and Fisheries. Historically, the lack of clear guidelines for stakeholder (fisherman) consensus has led to delays exceeding 1,000 days in extreme cases. - Environmental and Safety Assessments
Projects of 100 MW or larger undergo an Environmental Impact Assessment (EIA) by the Ministry of Environment. Projects below 100 MW (but over 50 MW) are subject to a Marine Environmental Impact Assessment by the Ministry of Oceans and Fisheries. Additionally, a Maritime Traffic Safety Assessment score of 80 or higher is mandatory to secure the site.
3. The New Innovative Framework: The Special Act (Effective 2026)
Enacted in February 2025 and effective from late March 2026, the Special Act completely restructures the industry into a state-led model.
A. State-Led Site Selection and Governance
The government will utilize the Offshore Wind Site Information System to analyze wind resources, fishing activities, and military operations to designate "Preliminary Zones" Following this, a "Public-Private Consultation Body" led by local governments will secure social acceptance to finalize the area as a "Development Zone" This serves as a significant de-risking measure, as the government preemptively resolves complex regulatory and stakeholder issues.
B. "One-Stop Shop" Integrated Permitting
Once a developer is selected for a Development Zone and receives approval for the Implementation Plan, they are deemed to have acquired 28 separate permits (including the Electric Business License, Public Use Area Permit, and Maritime Traffic Safety Assessment). This "deemed approval" system is expected to slash project preparation timelines from 71 months to approximately 31 months.
C. Protection of Existing Projects (Transitional Measures)
To ensure market stability, projects that obtained an Electric Business License prior to the Act’s enforcement may continue under the legacy framework. Alternatively, if certain criteria are met, they may apply to transition into the Special Act framework to benefit from the integrated permitting process.
4. Economic Incentives and Benefit-Sharing Mechanisms
Revenue for offshore wind in Korea primarily depends on Renewable Energy Certificates (RECs) under the RPS (Renewable Portfolio Standard) scheme. The government has sophisticated its weighting system to ensure bankability.
- Complex REC Weighting
The base weight is 2.5 for offshore (2.0 for coastal). Additional weight is added based on water depth and distance from the shoreline to compensate for high CAPEX. For instance, floating offshore wind projects in deep, remote waters can secure high economic viability through these multipliers. A "Pre-calculation Guidance System" is also in place to reduce uncertainty during Project Financing (PF). - Resident Participation Scheme for Community Acceptance
If local residents invest 4% or more of the total project cost (via equity, bonds, or funds), an additional REC weight of up to 0.3 is granted. Successful models, such as Shinan-gun’s "Sunlight Pension," have transformed local opposition into proactive participation by distributing dividends to the community.
5. Power Grid Connection and Technical Standards
- KEPCO’s Pre-investment in Shared Connection Facilities
To alleviate the initial financial burden on developers, the Korea Electric Power Corporation (KEPCO) will pre-construct shared grid connection facilities for large-scale clusters (2,000 MW+) or significant individual projects (1,000 MW+), with costs recovered over the operation period. - Grid Stability and Technical Compliance
In accordance with KEPCO’s Transmission and Distribution Grid Code, all turbines exceeding 1 MW must provide real-time meteorological and output data. Furthermore, they must possess Low Voltage Ride Through (LVRT) capabilities to maintain grid stability during voltage fluctuations.
