Electric Power, LNG, Nuclear
June 04, 2025
South Korea's LNG demand set to rise as new president prioritizes renewables
By Charles Lee
HIGHLIGHTS
New president prioritizes renewables in power mix
Marks shift from nuclear-heavy policy of previous govt
South Korea's new President Lee Jae-myung's push to expand the role of renewables in the country's power mix is expected to boost LNG demand to ensure a stable electricity supply, industry officials said June 4.
Lee, who won the presidential election on June 3 following the ouster of impeached President Yoon Suk-yeol, campaigned to prioritize renewables in the power mix and review his predecessor's nuclear-first policy.
Lee took office on June 4 and is expected to pursue reducing South Korea's heavy reliance on nuclear power in electricity generation, having long expressed concerns about nuclear safety and waste disposal.
"Under President Lee's energy policy over the next five years, the role of renewable sources is expected to increase in the power mix while the share of nuclear is reduced, which could lead to higher LNG demand to ensure a stable electricity supply," an official at the Ministry of Trade, Industry and Energy said.
"The government will ensure a stable electricity supply to prevent any possible power shortages during peak seasons," the MOTIE official added.
Power generation mix
Under the nuclear-focused energy policy of Yoon, who took office in March 2022, nuclear power became South Korea's largest source of electricity production for the first time last year, replacing coal and LNG, according to MOTIE.
Nuclear power accounted for 32% of the country's total electricity production in 2024, up from 26% in 2019, while coal's share fell to 28% from 40% over the same period.
Meanwhile, LNG's role in the power mix rose slightly to 28% last year, compared with 26% in 2019.
Nuclear and coal have served as the "baseload" power generators in the country's electricity production, which operates under a "cost-based pool" system.
In the cost-based pool system, electricity generated from cheaper fuels like coal and nuclear is traded first, while LNG-fired power plants increase operating rates as demand rises to fill the supply gap.