[Exclusive] Presidential Office Steps In to Attract At Least Two Major Corporations to RE100 Industrial Complex

Inquiries with the Ministry of Trade, Industry and Energy and Major Corporations Underway
Discussion of Solutions to Chemical Substances Control Act and Other Regulatory Issues
"Substantial Electricity Rate Discounts"... Concerns Over KEPCO's Financial Deterioration
Institutional Improvements Needed for Stable Supply of Renewable Energy

Kim Yongbeom, the Policy Chief, is briefing on the RE100 industrial complex at the Yongsan Presidential Office press conference room on the 10th. 2025.7.10 Yonhap News Photo by Yonhap

The Lee Jaemyung administration is actively reaching out to major corporations to encourage their participation in the planned RE100 industrial complex, which aims to use 100% renewable energy by 2050. Experts believe that the core challenge in establishing an RE100 complex lies in the stable and affordable supply of renewable energy, which will not be easy. As an incentive, the government is considering significantly easing corporate regulations, including the Act on the Registration and Evaluation of Chemicals (Chemical Substances Control Act).

According to the government and business community on the 17th, the Presidential Office and the Ministry of Trade, Industry and Energy, which is the relevant authority, have determined that the success of the RE100 complex requires the participation of at least two large corporations. They have begun surveying major companies to gauge demand, while also assessing the likelihood of their participation.

The RE100 complex is envisioned as a cluster capable of supplying 100% renewable energy and is one of the Lee Jaemyung administration's top policy priorities. The main objectives are to help export-oriented companies respond to global greenhouse gas regulations and to promote balanced regional development. While the specific site has not been finalized, the Honam region, which is well-suited for solar and offshore wind power generation, is considered the leading candidate. The government aims to enact a special law on the establishment and support of RE100 industrial complexes and energy new towns by September, and to confirm the large corporations that will move in immediately afterward.

A senior government official explained, "Key large corporations must relocate to regional RE100 complexes in order to attract subsequent participation by global companies and small and medium-sized enterprises." Thirty-six Korean companies, including Samsung Electronics, LG Electronics, SK Hynix, and Hyundai Motor, are currently participating in the RE100 campaign. There is speculation that AI data centers and new manufacturing facilities being promoted by major corporations could be located in the RE100 complex.

The government is also considering regulatory relaxation as a means of attracting large corporations. This follows President Lee's directive to "review making the RE100 complex a 'zero regulation' zone in principle."

The main targets for regulatory easing include the Ministry of Environment's Chemical Substances Control Act and the Act on the Registration and Evaluation of Chemicals, which the business community has long criticized as 'killer regulations' that hinder investment. At the first cross-government task force (TF) meeting held on the 16th, the focus was reportedly on discussing ways to resolve such regulatory issues.

Moon Sunhak, 1st Vice Minister of the Ministry of Trade, Industry and Energy (second from the left in the photo), is presiding over the '1st RE100 Industrial Complex Promotion TF Meeting' on the 16th at the main conference room of the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, with officials from related ministries including the Ministry of Land, Infrastructure and Transport, Ministry of Environment, Ministry of Economy and Finance, and Ministry of Culture, Sports and Tourism in attendance. Ministry of Trade, Industry and Energy

Photo by Moon Sunhak

Plans to offer discounted electricity rates to entice large corporations in the Seoul metropolitan area to relocate to regional areas are also expected. President Lee has instructed officials to consider providing substantial electricity rate discounts for companies in the RE100 complex. The problem is that this could further worsen the financial situation of Korea Electric Power Corporation (KEPCO), which already has an accumulated debt of 205 trillion won.

Currently, the industrial electricity rate for large consumers is 182.7 won per kWh. Last year, KEPCO's purchase price for solar power (system marginal price plus one Renewable Energy Certificate) was in the 200-won range, while the purchase price for offshore wind power was in the 400-won range. Yoo Seunghoon, a professor at Seoul National University of Science and Technology, said, "KEPCO is already purchasing renewable energy at high prices, and further discounting electricity rates for companies in the RE100 complex could spark controversy over preferential treatment for specific regions. It would also increase KEPCO's financial burden."

Above all, as an RE100 complex, it is essential to create conditions for supplying 100% renewable energy. The southwestern region, which is considered a leading candidate for the RE100 complex, is rich in solar and wind energy but still lacks the capacity to supply 100% renewable energy to the complex.

In addition, to stably supply highly intermittent renewable energy to the complex, massive investment in energy storage systems (ESS) will be required. How to secure the necessary funding for ESS installation also remains an unresolved issue.

Improvements are also needed to allow companies to freely procure renewable energy. Since 2021, the Korean government has implemented the Korea-style (K)-RE100 system to support domestic companies in meeting RE100 commitments.

Companies can achieve RE100 by purchasing Renewable Energy Certificates (RECs), signing power purchase agreements (PPAs) with renewable energy generators, subscribing to the green premium rate plan, self-generating power, or making equity investments.

Although companies prefer direct PPAs, in actual electricity transactions, the green premium accounted for the highest share (80% as of 2023). This is because solar power generators prefer the REC spot market or fixed-price bidding, which offer higher returns than PPAs. Experts point out that institutional improvements are needed to vitalize PPAs.

Meanwhile, RE100 is a global campaign led by the UK-based nonprofit The Climate Group, aiming for 100% renewable energy use by 2050. As of July 2024, 433 companies worldwide have joined, including 36 Korean companies.