7 out of 10 Korean Companies to Allocate 10% of Investment to Energy Transition Within 5 Years

ABB Releases 'Asia Pacific Energy Transition Readiness Index'

Anders Maltesen, Head of ABB Energy Industries Asia, is speaking at the media roundtable held on the 4th at The Roa in Samseong-dong, Seoul. Photo by ABB Korea

Approximately 7 out of 10 Korean companies have indicated that they plan to allocate more than 10% of their capital expenditures (CAPEX) to energy transition within the next five years.

ABB, a Switzerland-based company specializing in electrification and automation, announced these findings from the “Asia Pacific Energy Transition Readiness Index 2025” for Korea on November 4.

This index is based on a survey conducted from May to June with 4,085 executives in charge of automation, electrification, digitalization, and sustainability strategies across 10 industries in 12 Asia-Pacific countries, including Korea. Among the respondents, 415 were Korean executives. The survey covered energy-intensive industries such as chemicals, data centers, energy and power generation, manufacturing, oil and gas, and transportation.

The results show a clear trend among Korean companies to increase investments related to energy transition. Among respondents, 68% stated that they plan to allocate more than 10% of their total capital expenditures to energy transition initiatives over the next five years. The oil and gas sector had the highest response rate at 90%, followed by power generation at 82% and transportation at 81%.

Additionally, 29% of respondents said they intend to increase their investments in energy transition by more than 50% within the next four to five years. Furthermore, about one-third (29%) of respondents identified public-private partnerships as a key opportunity, while 60% emphasized the importance of intergovernmental cooperation within the region to build smart grid infrastructure.

18% of respondents reported that they already source more than half of their total energy from renewable sources, and 74% expect the share of renewable energy use to increase by more than 20% within the next five years.

18% of respondents answered that more than half of their energy is supplied from renewable sources. In addition, 74% said that the share of renewable energy will exceed 20% over the next five years.

Korean executives identified solar (49%), bioenergy (48%), and wind (47%) as the “big three” game changers set to lead green energy over the next five years.

More than half (65%) of Korean energy industry executives surveyed cited artificial intelligence (AI) and automation as the key drivers of Korea’s energy transition. Investment priorities were ranked as digitalization (43%), automation (37%), and electrification (21%).

In particular, the proportion of investment in digitalization in Korea surpassed the Asia-Pacific regional average (38%), indicating that Korea holds a leading position in leveraging technology for decarbonization and efficiency enhancement.

On this day, Anders Maltesen, Head of ABB Energy Industries Asia, stated at a media roundtable with Korean media, “Korea’s energy transition is entering a decisive stage. Investments in AI-based energy management and smart grid solutions are now essential, serving as strategic tools for cost efficiency, resilience, and strengthening competitiveness.”