On December 3, 2025, the Republic of Korea’s (“Korea’s”) newly-minted Ministry of Climate, Energy and Environment (the “MCEE”)[1] unveiled its “Strategy to Promote Onshore Wind Power Generation” (the “Onshore Wind Strategy”) and announced a plan to launch a related Government Task Force for the Acceleration of Onshore Wind Power Promotion (the “Onshore Wind Task Force”).
The Onshore Wind Strategy and the creation of the Onshore Wind Task Force is a significant development in Korea’s energy regulatory landscape, is the MCEE’s first formal regulatory announcement with respect to Korea’s renewable energy sector since its establishment on October 1, 2025 and demonstrates the Lee Jae-Myung administration’s intent to enhance new renewable energy power generation through onshore projects (which are expected to be less expensive than much-touted large-scale offshore wind power projects currently under development).
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Background – Languishing Onshore Wind |
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Key Changes |
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Expansion of temporary-use permits in mountainous districts: The maximum area of temporary-use permits for mountainous districts under Korea’s Mountainous Districts Management Act (the “Mountains Act”) (required to develop power generation facilities in Korean mountainous districts) will be increased from the current maximum area of 100,000m2 to 200,000m2.
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Standardization of minimum distance requirements: Currently, more than 60 local governments have enacted local ordinances restricting the development of renewable power projects within specified minimum distances of, e.g., residential areas or public roads. The Onshore Wind Strategy proposes standardizing these various minimum distance requirements through an amendment to Korea’s Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy (the “Renewable Energy Act”).
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Pruning of stalled projects: The MCEE is reviewing a plan to withdraw and cancel power grid connection rights previously granted to certain onshore wind power project developers whose projects are not progressing and to reallocate newly-resultant grid capacity to developers demonstrating the ability to actually implement and operate proposed projects.
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Government-backed credit enhancement: The government-backed Carbon-Free Energy Guarantee Program announced in July 2025 (which guarantees up to 60% of qualifying senior project financing indebtedness for applicable offshore wind power projects (with a maximum guaranteed amount of KRW 400 billion per project)) will be expanded to cover onshore wind power projects as well (for up to 70% of qualifying onshore wind power project financing).
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Early development support: The MCEE intends to extend support for early project development stakeholder engagement beyond current a priori consultations on forestry and environmental matters to also cover military-related issues and (in conjunction with, inter alios, the Korea Energy Agency’s Wind Power Project Division) to support developers in identifying project sites (and alternative sites, as may be needed) to mitigate prospective adverse effects to natural habitat and ecosystems.
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Public-led auctions: The MCEE plans to establish a “public-led competitive onshore wind power bidding system” to encourage state-invested entities to actively participate in the onshore wind projects similar to the public-led auctions already operating in Korea’s offshore wind power sector (but to exclude the six wholly-owned power generation subsidiaries of the Korea Electric Power Corporation (Korea’s majority state-owned utility).[2] The goal of these public-led auctions will be to promote the overall development of Korea’s onshore wind power market by expanding the pool of project developers and leveraging the stable financial structure of public institutions (while enhancing the business development capabilities of private enterprises).
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Implications |
[1] The MCEE is a newly-formed Korean ministry created in October 2025 by the new Lee Jae-Myung administration’s combining of the energy-focused component of Korea’s former Ministry of Trade, Industry and Energy with its former Ministry of Environment.
[2] Korea Hydro and Nuclear Power Corporation, Korea Western Power Corporation, Korea South Eastern Power Corporation, Korea Southern Power Corporation, Korea East-West Power Corporation and Korea Midland Power Corporation.
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