Carbon Neutrality as an Industrial and National Security Strategy: The Korean Green Transition (K-GX)
Institute for Future Strategy Issue Brief Vol. 55
“Carbon Neutrality as an Industrial and Security Strategy and the Korean Green Transition (K-GX)”
This issue brief examines the strategic direction and key policy challenges of the Korean Green Transition (K-GX), a framework designed to achieve carbon neutrality while simultaneously strengthening industrial competitiveness and energy security.
The brief highlights how climate policy is increasingly being transformed into a national strategic instrument that integrates industrial competitiveness, energy security, and technological leadership in major economies around the world. It argues that South Korea requires a new approach to link the achievement of its 2035 Nationally Determined Contribution (NDC) targets with long-term industrial growth. To this end, it proposes the development of a differentiated industrial ecosystem that integrates electricity, hydrogen, and artificial intelligence (AI).
The brief conceptualises K-GX around three strategic pillars: energy transition, industrial transition, and system transition. Under these pillars, it identifies five priority policy agendas: (1) accelerating the transition to competitive carbon-free electricity, (2) decarbonising key manufacturing sectors, particularly the steel industry, (3) establishing a phased hydrogen supply portfolio, (4) promoting green transition initiatives linked to balanced regional development, and (5) fostering a private sector-led market ecosystem. As a foundation for implementing these priorities, the brief advocates an AI- and data-driven policy framework. It emphasises that K-GX should be understood not merely as an environmental policy, but as a national competitiveness strategy that reshapes energy systems, industrial structures, and economic foundations. Accordingly, the green transition should be viewed not as a regulatory burden, but as an opportunity to strengthen low-carbon manufacturing competitiveness and create new markets.
Furthermore, the brief argues for a shift away from target-driven emissions reduction policies toward implementation-oriented policy design that comprehensively considers technology deployment timelines, cost structures, sectoral mitigation capacities, and the evolving global trade environment. It concludes by recommending that South Korea’s 2035 NDC be redefined as a long-term national strategy that simultaneously advances carbon neutrality, industrial competitiveness, and balanced regional development.
