The views expressed in this presentation are the views of the author and do not necessarily reflect the

views or policies of the Asian

Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI
does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology
used may not necessarily be consistent with ADB official terms.

Mobilizing Private Capital for Low-

Carbon Energy Transition:
Case of Korea
ERIA/ADBI Dialogue in Tokyo, Feb. 2019

Dr. Jootae Kim (Dankook University, Korea)

Sources and usages of Energy in Korea
Sources of energy

(million TOE) % (2015)

Primary energy 287,479 100

Coal 85,473 29.7
Petroleum 109,566 38.1
Liquefied natural gas 43,613 15.2
Hydro 1,223 0.4
Nuclear 34,765 12.1
Renewable energy 12,839 4.5
 Ratio of Renewable energy

63GW
• Focused on Solar and Wind energy 20%
• Germany 29%, UK 24%, France 17%
Japan 15%, US 14%

27GW
13GW 10%
7%

2016 2020 2030

Challenges

• Energy market is dominated by public firms.

• Low electricity prices, willing to pay more for Renewable

• Debate on nuclear supply

• renewable energy in 2014 : waste, 60.6%, biomass,15%,

solar energy, 10.7%, hydraulic power, 5.8%,
wind power, 3.6%, fuel cell, 2.9%, ocean energy, 1.3%

• Growth of local government and civil society participation

Tax incentive : Green certificate

Green Deposit Customers

Higher Interest Rate

Policy Involvement Greening Society

(value creation)
Profit

Lower Interest Rate

Green Loan Green Businesses

Role of the Governments (consistency)

President President President

Lee Park Moon

• 2013 – 2017 • 2017 – 2022

• 2008 – 2013 • Creative • Job creation
• Green growth economy and & Inclusive
policy start-ups • Democratic
• Conservative • Disruption of • Stress of
party green policies renewable
• Conservative energy
party
General Issues in PPP

• Corporations in green industry or renewable energy

industry : Government certificates and support for them

• Banks, capital market, bond market, Market-based

instruments, international link (benchmarking and
adaptation), technology transfer, SME support

• Social(or industry) resistance, short-term burden

• Profit creation through CSV(common shared value)

economic return and social value at the same time

• Economic prosperity through sustainability efforts