Major offshore wind developers withdrawing from Korea one after another
Warning signs are emerging from the offshore wind power industry, which is expected to drive renewable energy expansion after 2030. Foreign offshore wind developers who have succeeded in major projects abroad and entered the domestic market are abandoning or attempting to exit their operations. The business environment is harsh and economic viability is poor, and remaining companies are also on edge over moves by energy authorities to lower prices. Voices are growing that the government must set priorities among expanding wind power deployment, fostering supply chains, and achieving cheap electricity generation.
Why major global wind developers are losing momentum in Korea
According to the Ministry of Climate, Energy and Environment on October 18, 2026, Norwegian energy company Equinor sent a letter to the government in September 2026 stating it plans to "cease all activities related to offshore wind in Korea" and explained this was "a result of reviewing strategy to focus on an integrated electricity market." Equinor, which currently maintains only minimal staff, is known to be closing its domestic office in November 2026.
Germany's RWE is proceeding with the sale of its stake in Tongyeong Future Offshore Wind. State-owned Gencos including KOEN (Korea South-East Power) are reviewing acquisition of the stake, and KOEN is understood to be hoping to secure up to 34 percent of the shares.
Ørsted, the world's number one offshore wind company based in Denmark, is also reconsidering a 1.47 gigawatt project being pursued in Incheon. Recently, a key executive who had been with the company since its early entry into Korea left the firm. This is being interpreted as a "first warning" regarding domestic operations. Corio Generation, a British firm under Macquarie Asset Management, also dissolved its Korean subsidiary in April 2026.
The MCEE plans to expand offshore wind generation from 0.4 gigawatts in 2025 to 45 gigawatts by 2040, but concerns are growing that the target may be delayed as four European developers are successively scaling back or withdrawing from domestic operations. The existing business model of developing wind farms in partnership with experienced foreign partners could be shaken.
Wind industry: "Companies are leaving because they cannot trust the market"
The wind industry views the exodus of global developers as stemming from the domestic market environment. While global business conditions have deteriorated worldwide due to conflicts in the Middle East and other factors, these companies are making strategic decisions to exclude Korea. An industry official pointed out that "when the government opens the market, companies assess value and enter, but because deployment speed is slow and licensing is complex, market confidence does not develop."
The explanation from Spain's Iberdrola, the world's second-largest power company that has already exited Korea, aligns with this view. Begoña Díaz González, Iberdrola's head of overseas operations, whom we met at the Basque Trade and Investment Commission in Spain's Basque Country on September 30, 2026, said: "Around 2020 when we attempted to enter Korea, we had a partner called GS, but the regulatory system for licensing and other matters was not clear, and after the change of government there was great uncertainty about the possibility of business changes. We decided to withdraw to focus on markets where we have greater strengths."
The industry is particularly negative about the government's moves to lower prices in competitive auctions, which directly affect long-term electricity sales prices. The upper limit for competitive auction bids in the first half of 2026 was 171.229 won per kilowatt-hour for fixed-bottom installations, down 3.02 percent from the previous year. An official from a wind developer said: "We could lower prices after some deployment has occurred, but now we are lowering prices right from the point where bids are being won. If it exceeds a level that developers can bear, it will become a problem."
The disappearance of renewable energy certificates through system reform is also a variable. According to the office of Rep. Lee Heon-seung of the People Power Party, among the estimated 20-year operating revenue of 7.0939 trillion won for the Sinan Ui offshore wind project being pursued through the National Growth Fund, renewable energy certificate revenue accounts for 5.2651 trillion won, or 74 percent. There are concerns that if competitive auction prices do not adequately reflect renewable energy certificate revenue, project viability could worsen.
This is also negative from the perspective of supply chain development and energy security. Domestic equipment manufacturers could see reduced work and higher dependence on foreign products. There is precedent. During the Lee Myung-bak administration, domestic shipbuilders rushed into wind turbine businesses. Samsung Heavy Industries demonstrated potential by manufacturing some of the world's largest wind turbines at the time, but the problem was that domestic offshore wind farm construction proceeded slowly. In the mid-2010s, shipbuilders abandoned turbine businesses one after another, and the aftereffects continue today. While 15-megawatt-class wind turbines have been commercialized in the global market, we are still in the development stage for 10-megawatt-class turbines. Another wind industry official said: "If Korean supply chain companies give up on offshore wind projects, both domestic sales and exports become difficult. I worry that we will become a mere export hub for China."
The MCEE, meanwhile, takes the position that these are measures to secure competitiveness for offshore wind. An MCEE official said: "To secure competitiveness for offshore wind compared to other renewable energy, we need to lower prices over time. We are considering preferential pricing as an alternative to the abolition of renewable energy certificates and are investigating appropriate levels." The official added confidence that "company withdrawals are due to portfolio adjustments, and the competitive auction to be held at the end of October 2026 or early November 2026 will show record-high competition."
Original Korean article: Hankook Ilbo
English brief by Korea Wind Intelligence, koreawindintel.com
