Samjong KPMG: "1,485 Trillion Won in Low-Carbon Transition Opportunities Within Korea's Reach"

Report on K-GX Market Outlook and Strategic Participation Strategies

Amid expectations of increased investment in low-carbon industries at home and abroad, an analysis found that Korean companies have market opportunities worth 1,485 trillion won in this sector.

Samjong KPMG published a report on the 3rd titled “Growth Opportunities for Korean Industries through the Low-Carbon Transition: Market Outlook for Key K-GX Technologies and Strategic Participation Strategies.” It analyzed domestic and international market prospects in major low-carbon sectors and the competitiveness of Korean industries.

According to the report, the cumulative global market opportunity available to Korean companies from this year through 2035 is estimated at approximately 1,485 trillion won. The estimate takes into account current policies and market outlooks, as well as domestic companies’ business foundations and export competitiveness.

The report identified seven key sectors related to Korea’s Green Transformation (K-GX): solar power, offshore wind power, heat pumps, power grids, secondary batteries, steel, and petrochemicals. It examined market prospects and conditions for entry in each country, and assessed the potential for domestic companies to participate in these sectors.

In the energy sector, including solar power, offshore wind power, and heat pumps, key opportunities include commercializing next-generation products, combining equipment supply with construction capabilities, and applying these technologies to buildings and industrial processes. The report also advised expanding the power grid business into engineering, procurement, and construction (EPC) and systems businesses.

In the transition technology sector, secondary batteries require portfolio adjustments to meet demand for energy storage systems (ESS) and the commercialization of next-generation technologies. In industrial sectors such as steel and petrochemicals, a phased transition is essential, focusing on reducing carbon emissions from existing products and processes and using bio-based feedstocks.

The report said that turning market opportunities into industrial growth will require building a track record through domestic deployment and demonstration projects; expanding from equipment supply into systems and project businesses; transitioning production assets based on demand and profitability; and coordinating policy and financial support with each stage of industrialization.

Samjong KPMG plans to publish follow-up reports later this year, after conducting an in-depth analysis of three of the seven technologies: offshore wind power, heat pumps, and power grids. It will also hold an in-person seminar in Seoul in mid-December. The report is available in Korean and English on the official Samjong KPMG website.

Lee Dongseok, Sustainability Service Leader and Vice President at Samjong KPMG, said, “K-GX is an opportunity to link the low-carbon transition to stronger competitiveness and new growth opportunities for Korean industries. Companies should identify the markets and value-chain segments where they can build a competitive edge based on their technologies and manufacturing capabilities, and set investment priorities.”

Lee added, “It is important to link domestic demonstrations and early demand to production and investment, and to build a track record that is recognized in overseas markets.”

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