Companies Join 'K-GX'... Green Transition in Solar, Steel, and Residential Sectors

Hanwha Q CELLS to Begin Mass Production of 1GW Tandem Solar Cells by 2028
POSCO to Secure Commercial Hydrogen-Based Steelmaking Technology by 2030
Samsung and LG Drive Residential Heating Electrification with Heat Pumps

Major domestic companies such as Samsung Electronics, LG Electronics, Hanwha Q CELLS, and POSCO are ramping up investments in eco-friendly technology and expanding their businesses in line with the government's Korean-style Green Great Transformation (K-GX) initiative. They are accelerating the commercialization of technologies for carbon reduction, including next-generation solar cells, hydrogen-based steelmaking, and electrification of residential heating using heat pumps.

On October 7, the Ministry of Economy and Finance and the Ministry of Climate, Energy, and Environment, along with other related agencies, held a public briefing at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul to announce the K-GX strategy. At the event, major corporations also unveiled their detailed green transition plans for each sector and specific business roadmaps.

Seungduk Park, President of Hanwha Q CELLS, is making a presentation at the Korean-style Green Transformation (K-GX) Strategy National Reporting Meeting presided over by President Jae-myung Lee at a conference hall in Seoul on the 7th. Photo by Yonhap News

Hanwha Q CELLS plans to begin full-scale mass production of perovskite tandem solar cells—next-generation solar technology—by the end of 2028. The company aims to build a production facility with an annual capacity of 1 gigawatt (GW) in Jincheon, Chungbuk, and complete both domestic and international demonstration and production preparations by 2028.

Tandem solar cells are produced by layering a new material, perovskite, on top of conventional silicon solar cells. They absorb different wavelengths of light and convert them to electricity, enabling higher power generation per unit area compared to conventional silicon solar cells. The increased conversion efficiency leads to lower power generation costs and more efficient use of limited land area.

Hanwha Q CELLS plans to expand tandem solar cell applications to building-integrated photovoltaics (BIPV), satellites, and artificial intelligence (AI) data centers. The company projects that supplying 1 GW of tandem modules annually could reduce carbon emissions by about 600,000 tons each year, create approximately 1,000 jobs, and generate KRW 1 trillion in revenue annually.

In the steel sector, POSCO is moving quickly toward green transformation centering on hydrogen-based steelmaking. Given that the steel industry accounts for around 15% of Korea's total greenhouse gas emissions, a key challenge is converting traditional blast furnace-based processes to low-carbon methods.

Joo-Tae Lee, President of POSCO Holdings, is giving a presentation at a Korean-style Green Transformation (K-GX) strategy national briefing held on the 7th at a conference hall in Seoul, presided over by President Jae-myung Lee. Photo by Yonhap News

This year, POSCO began operating a large-scale electric furnace with an annual capacity of 2.5 million tons at its Gwangyang Steelworks, and also commenced construction of a demonstration facility for Korean hydrogen-based steelmaking (HyREX) in Pohang with an annual production capacity of 300,000 tons. The company aims to complete the demonstration facility by 2028 and achieve commercial development of Korea's HyREX hydrogen-based steelmaking technology by 2030.

A Southeastern cluster connecting Pohang to Ulsan Industrial Complex will also be established. Clean hydrogen produced locally will be utilized in the steelworks, with an ecosystem created to link low-carbon steel production and demand in the region.

POSCO predicts this will generate approximately KRW 6 trillion in economic benefits in the Southeast region, create 11,000 jobs, and achieve an additional annual carbon reduction of 560,000 tons.

Looking forward, POSCO plans to expand this model to the Southwest region centered on Gwangyang. Once hydrogen-based steelmaking ecosystems are established in both the Southeast and the Southwest, demand for clean hydrogen in the steel sector is expected to reach 1 million tons, enabling an additional annual reduction of 14 million tons of carbon emissions.

Lee Jae-sung, President of LG Electronics, is giving a presentation on the 7th at a meeting hall in Seoul during the Korean-style Green Great Transformation (K-GX) strategy national briefing chaired by President Lee Jae-myung. Photo by Yonhap News

LG Electronics and Samsung Electronics are expanding the heat pump market, transitioning residential heating from fossil fuels to electricity. As domestic residential heating remains highly dependent on gas boilers and other fossil fuels, they aim to reduce building sector carbon emissions by increasing the adoption of heat pumps.

LG Electronics is leading with an "energy self-sufficient modular house" that integrates heat pumps with solar power and energy storage systems (ESS). The modular system generates electricity from solar panels, stores it in ESS and thermal storage systems, and supplies it to home appliances, electric vehicles, and heat pumps. A home energy management system integrates the production, storage, and consumption of energy.

LG Electronics plans to establish a domestic heat pump supply chain based on its Changwon factory and expand the proven electrification of heating and cooling—demonstrated in a Jeju multi-family housing project—to other local governments. The company will subsequently create energy self-sufficient residential complexes in designated distributed energy zones and youth housing in the Jeonnam region, with a long-term goal of expanding to public rentals and private multi-family housing nationwide.

Through heating electrification in buildings, LG Electronics anticipates that it can reduce carbon emissions by approximately 3 million tons by 2035 compared to 2024 levels.

Samsung Electronics President Seunghee Park is delivering a presentation at a Korean-style Green Great Transformation (K-GX) strategy national briefing held on the 7th at a conference hall in Seoul, presided over by President Jae-myung Lee. Photo by Yonhap News

Samsung Electronics is also expanding integrated heat pumps for apartments, tailored to Korean housing types. A single outdoor unit handles summer cooling, winter floor heating, and hot water supply. Compared to installing separate air conditioners and heat pumps, this approach can reduce installation space by 46%.

The company is also applying technology that utilizes heat generated by outdoor units in summer to produce hot water, reducing electricity consumption by about 20%. Samsung Electronics plans to connect these systems to SmartThings and, in the long term, link them with solar power, ESS, and home appliances to provide integrated energy management for residences.

The company is expanding its domestic manufacturing base as well. Production of heat pumps in Korea began last month, and a supply chain with approximately 40 partner companies is being established. After setting design and installation standards suited to Korea's climate, field-testing will be conducted in carbon-zero apartment complexes, with subsequent expansion to general housing and public buildings.

This content was produced with the assistance of AI translation services.