Executive summary

Korea’s new administration under President Lee Jae-Myung is accelerating offshore wind development through comprehensive policy and legislative measures. A newly introduced Special Act on Offshore Wind streamlines the permitting process by shifting from a developer-led model to a government-designated zoning system. The new administration has set ambitious goals, such as delivering 20 GW of offshore wind capacity by 2030, alongside by plans to expand grid infrastructure needed to support this target. This briefing provides an overview of the revised regulatory framework, key milestones (including upcoming tenders and effective dates of new legislation), and analyzes the associated risks and opportunities for global energy investors in Korea’s offshore wind sector.

Offshore wind a key priority for new administration

President Lee Jae-Myung’s inauguration in June 2025 marked a pivotal shift in Korea’s energy policy. With his Democratic Party holding a legislative majority in the National Assembly, the administration is advancing the expansion of renewable energy, with a particular emphasis on offshore wind. President Lee has reaffirmed South Korea’s commitment to reducing greenhouse gas emissions by 40% by 2030 (compared to 2018 levels) and to phasing out coal-fired power generation by 2040. Offshore wind stands at the center of this agenda. President Lee has pledged significant investment in wind power capacity and grid infrastructure, focusing on the resource-rich southwest coast. Notably, President Lee announced plans to transmit 20 GW of offshore wind power from the southwest region to major industrial regions via newly developed offshore grid systems by 2030. In parallel, the government is pursuing a digitally integrated “energy super grid,” also referred to as the energy highway, designed to balance regional supply and demand across the country. To support these goals, the administration is overhauling existing governance structures. A dedicated Ministry of Climate and Energy will be established to centralize oversight of climate policy and energy development, addressing long-standing fragmentation among government agencies. This institutional reform underscores the government’s commitment to more effectively coordinating the expansion of renewables, including offshore wind. Overall, the policy direction of the new leadership is clear: accelerate the energy transition by advancing offshore wind development — driven by strong government intervention and sweeping regulatory reform.

Special act on offshore wind: A Brand-new framework

A major legislative development is the passage of the Special Act on the Promotion of Offshore Wind Power Distribution and Industrial Development, commonly referred to as the Offshore Wind Promotion Act. Passed by the National Assembly on February 27, 2025, this long-awaited piece of legislation establishes a streamlined and centralized framework for offshore wind project development. The act replaces Korea’s previous “open door” policy, under which private developers took the lead in site selection and navigated a complex web of permits, with a government-led zoning system and one-stop permitting process.

Government-led auctions and investment opportunities

In parallel with the regulatory overhaul of site selection and permitting, Korea is revamping its offtake and subsidy framework for offshore wind to attract investment. On August 8, 2024, the Ministry of Trade, Industry and Energy (MOTIE) released an Offshore Wind Power Supply Roadmap outlining a new competitive bidding scheme for awarding project capacity. Under this scheme, the government (through the Korea Energy Agency) will hold regular tenders for offshore wind project rights, in line with the new zoning approach. Key aspects include:<

• Scheduled capacity auctions: Beginning in late 2024, tenders have been held twice annually – with a main auction in the second quarter of each year and a second round in the fourth quarter if needed to allocate any remaining capacity. Between the second half of 2024 and the first half of 2026, over 7–8 GW of offshore wind capacity is scheduled to be auctioned. The initial tender under this framework took place in October 2024, offering approximately 1.5 GW of offshore wind capacity as part of a broader 2.8 GW wind and solar solicitation. Notably, the results of that first auction, announced in December 2024, awarded approximately 1.886 GW across five projects — four fixed-bottom wind farms and one floating wind farm. Among the successful bidders were major international players; for example, Equinor’s 750 MW Firefly (Bandibuli) floating project off Ulsan secured an offtake contract, marking the largest award to date. Other winning projects included the 532 MW fixed-bottom Anma Offshore Wind project in Jeollanam-do and a 500 MW project in Taean developed by Vena Energy and CIP. This regular cadence of auctions provides a clear pipeline of opportunities for developers and investors seeking to enter the Korean market or expand their portfolios.
• Two-stage bidding process: To enhance transparency and project quality, Korea has adopted a two-stage evaluation for offshore wind bids. In Stage One, proposals are assessed based on non-price criteria, with only the top 120–150% of the announced capacity (ranked by score) advancing. In Stage Two, the shortlisted projects compete on electricity price (or subsidy level) to determine final winners. Crucially, the government now discloses an upper price cap for bids in advance (at least for fixed-bottom wind), which increases predictability for participants. This mechanism is designed to balance cost competitiveness with qualitative considerations, reducing the risk of purely low-cost bids that may prove unviable or fail to secure local community support.
• Revised evaluation criteria: The weighting of bid evaluation criteria has been revised to promote long-term project sustainability and maximize local benefits. The allocation of price-related points has been reduced from 60 to 50 points, while the weight assigned to non-price factors has increased from 40 to 50 points Notably, “industrial economic effects,” which may include local content, supply chain development, and broader contributions to the national economy, now carry a weight of 26 points, up from 16 previously. Similarly, maintenance and operational plans are being given heightened importance. By contrast, the points allocated for mere community acceptance have been reduced, reflecting the government’s preference for tangible economic contributions over simple letters of local consent. The government has also indicated that projects led by Korean public entities or those contributing to national energy security may be awarded additional points. As a result, bidders are encouraged to form consortia with Korean partners, invest in local manufacturing or port infrastructure, and present robust O&M strategies rather than relying solely on aggressive pricing. International offshore wind developers and OEMs should take these criteria into account when formulating their bidding strategies, as partnerships with local stakeholders — for example, turbine assembly in Korea, the use of Korean-flagged vessels, or joint ventures with KEPCO affiliates — could meaningfully enhance bid competitiveness under the revised scoring framework.
• Floating wind and RPS adjustments: Recognizing the differing maturity of technologies, Korea ran a separate pilot tender track for floating offshore wind in 2024 and is assessing its success to refine future floating tenders. The roadmap also includes planned reforms to the Renewable Portfolio Standard (RPS) scheme in 2025. The RPS — which requires utilities to source a portion of power from renewables — will be strengthened and aligned with the competitive bidding process. We expect the RPS adjustments to further support public-led projects, potentially through multiplier credits or carve-outs for projects in designated zones. While details are pending, the broader policy trend is toward using the RPS to ensure stable demand (and revenue support) for the large volume of offshore wind capacity coming online, even as feed-in tariffs shift to competitive auctions.

Overall, the investment outlook is greatly improved by these coordinated measures. The combination of a clear auction schedule, transparent evaluation criteria, and strong political support reduces regulatory uncertainty. Global energy companies can now plan potential projects in Korea with greater confidence in the procurement process. That said, competition will be strong with both local chaebol-backed consortia and foreign players vying for a share of this growing market. To succeed, entrants should be prepared to demonstrate not only low costs but also a meaningful commitment to Korea’s industrial development and energy security goals in their project proposals.

Grid expansion and infrastructure support

A critical enabler — and potential bottleneck — for offshore wind growth in Korea is the electricity grid. President Lee’s administration has acknowledged this by championing the “Energy Highway” initiative, an ambitious plan to expand transmission infrastructure, particularly through offshore and underground cables:

• West coast HVDC network by 2030: The government aims to complete a West Coast Energy Highway — a high-voltage direct current (HVDC) subsea transmission network — by 2030. This network is designed to transmit up to 20 GW of offshore wind power from Korea’s resource-rich southwest, including the Honam region, to the Seoul Metropolitan demand center. Essentially, it will transport the significant volumes of wind energy expected from new projects off the coasts of Jeollanam-do and other western and southwestern regions northward. By alleviating congestion in the existing grid and distributing renewable power nationwide, the West Coast HVDC line is considered critical to achieving Korea’s 2030 renewable energy targets. It has been described as an “offshore power expressway” for the country’s energy transition.
• Nationwide “U-Shaped” subsea grid by 2040: Looking further ahead, the Korean Peninsula Energy Highway plan envisions a U-shaped loop of HVDC transmission spanning the entire coastline by 2040. This network would link offshore wind farms and regional grids from Incheon on the west coast, down through the southern provinces of Jeollanam-do and Gyeongsangnam-do, and up to the eastern province of Gyeongsangbuk-do, effectively encircling the peninsula with a resilient subsea grid. It also aims to connect major planned renewable zones, including offshore wind complexes and onshore solar belts, into a unified network. The strategic objective is to enable balanced regional development and attract RE100-compliant industries to provinces with abundant clean power by assuring them of stable transmission to demand centers. If realized, this initiative would position Korea as a leader in grid innovation in Asia, comparable to the offshore grid developments in the North Sea in Europe.
• Supporting infrastructure and supply chain: Beyond transmission lines, Korea is investing in port upgrades, vessel capacity, and related infrastructure. For example, new installation and maintenance ports are under consideration in the southwest to serve offshore wind clusters. There is also a concerted push to develop domestic wind turbine manufacturing and installation vessel capabilities. At present, a shortage of local turbine installation vessels, combined with strict cabotage rules, poses a challenge — foreign vessels face barriers unless partnered with Korean companies. The government’s approach, as reflected in bid criteria and policy statements, is to encourage international firms to form joint ventures or charter arrangements with Korean partners to comply with cabotage requirements and to build local maritime expertise. This represents both a risk (for project logistics) and an opportunity for those who proactively secure vessel access or invest in Korea’s offshore wind supply chain.

The key challenge is timing and execution. Grid projects of this scale, particularly subsea HVDC systems, involve long lead times, complex permitting processes (with onshore converter stations and cable landing points also potentially facing local opposition), and significant capital expenditure. Even with strong political will, completing the 20 GW West Coast network by 2030 is ambitious. Any delays in grid expansion could affect the pace at which new wind farms come online — a classic chicken-and-egg issue between generation capacity and transmission readiness. The administration is aware of this and is promoting measures such as regional electricity pricing to incentivize industrial power consumption in generation-rich areas, partially offsetting grid bottlenecks. Nevertheless, for investors and developers, it will be important to monitor grid build-out progress closely. Engaging with KEPCO (the transmission owner) and ensuring that projects align with grid connection plans, or even proposing private grid solutions, may be necessary to keep projects on schedule.

Key risks and challenges

While the outlook for offshore wind in Korea is robust, several risks and uncertainties remain:

• Regulatory uncertainty in transition: Until the Enforcement Decree of the Offshore Wind Promotion Act is promulgated and the new system becomes fully operational by 2026, there may be interim confusion. Developers currently in the early stages may be unsure whether to proceed under the old “open door” scheme or wait for government-led zoning. Although the Act permits existing projects to continue, the criteria for opting into zones — and the practical operation of “deemed permits” — remain to be clarified. Additionally, potential overlaps or conflicts between new zones and areas where developers hold legacy permits (such as wind measurement leases) will require resolution to ensure that existing rights are respected. The success of the new framework will largely depend on clear and detailed secondary legislation. Stakeholders should be prepared to participate actively in consultations and adapt quickly once the implementing rules are established.
• Permitting challenges and local opposition: The establishment of a one-stop shop committee is a positive development, but it does not completely remove permitting hurdles. For example, projects will still require environmental impact assessments and marine impact assessments, which must be reviewed by the Ministries of Environment and Oceans. These reviews may still lead to modifications or delays if issues are identified. Moreover, local residents and fishermen – if not convinced of a project’s benefits – could oppose specific zone designations or cable landings. Even with profit-sharing programs, community buy-in is not guaranteed. There is also the risk of legal challenges to site designations or environmental approvals, which could slow timelines, as seen in other jurisdictions. While the government’s requirement for consultation with local governments is helpful, companies should plan for early community outreach and proactive stakeholder engagement as part of their project strategy in Korea.
• Grid and execution risk: As noted, the ambitious timeline for grid infrastructure presents a potential bottleneck. If transmission projects encounter delays — whether from permitting, technical, or financing challenges — offshore wind farms may face curtailment or be forced to wait for grid connection, impacting revenue. There is also a risk of curtailment if renewable output exceeds local grid capacity in the interim. However, the planned “differential tariff” system, which charges lower rates for power used in generation regions, may help alleviate some congestion by encouraging on-site consumption. Investors should factor grid availability into project scheduling and consider contingency plans, such as integrating energy storage or adopting phased commissioning aligned with grid readiness.
• Supply chain constraints: Korea’s offshore wind surge will require a robust supply chain — spanning turbine components, installation vessels, and a skilled workforce. While the local supply chain is developing, it remains limited. Major turbine suppliers may need to localize portions of their manufacturing to meet both demand and government expectations. On the construction side, vessel shortages and cabotage restrictions mean that foreign developers without local partners could struggle to deploy installation ships to Korean projects. This could result in project delays or higher costs if vessels must be imported under special permits. Companies should mitigate this by forming alliances with Korean shipping firms or investing in local vessel capacity, for example by co-owning installation assets with Korean partners. Likewise, securing a qualified labor force — including engineers, project managers, and technicians — will be essential, as competition for talent is likely to intensify as multiple projects move forward concurrently.
• Financial and commercial viability: The shift to competitive bidding and the scale of new capacity additions raise questions about tariff levels and overall project economics. If bid prices are driven too low — as has occurred in some European auctions — developers could face tight margins, particularly in light of rising interest rates and inflation in equipment costs. Korea’s RPS-based offtake scheme provides some subsidy support, but it is evolving toward a more market-based structure. There is a risk that some projects may secure bids but struggle to reach financial close if the projected revenue is insufficient or if policy support — such as renewable credits or tax incentives — proves inadequate. Additionally, Korea’s wholesale electricity market structure and the regulatory framework for private power purchase agreements are areas that investors will need to navigate carefully for merchant or corporate offtake opportunities. Engaging early with Korean lenders, export credit agencies, and multilateral financiers can help gauge financing appetite. The positive news is that Korea’s strong political commitment to offshore wind may translate into supportive measures — including green finance initiatives or guarantees — but until such measures materialize, prudent financial modeling and risk assessment remain crucial.

In summary, Korea’s offshore wind sector in 2025 and beyond offers a promising yet complex landscape. The government’s proactive role mitigates many traditional development risks, but companies will need to remain agile in managing the remaining challenges.

Key takeaways and outlook

The Lee Jae-Myung administration’s drive to accelerate offshore wind is a potential game-changer for Korea’s renewable energy industry. By establishing a firm legal framework and committing to infrastructure investment, the country is signaling that it is open for large-scale renewable energy projects. Global developers, investors, and original equipment manufacturers will find a more navigable path than before, but also new rules of engagement — with the government serving as a key orchestrator of where and how projects are developed.

Crucially, the 2025–2026 period will set the tone: the finalization of enforcement regulations, the designation of the first offshore wind development zones, and the outcomes of the next tenders will reveal how effective these reforms are in practice. Early indications are positive, with nearly 1.9 GW already awarded under the new bidding scheme and strong interest from international players. If grid improvements keep pace and execution risks are well managed, Korea could become one of the fastest-growing offshore wind markets in the world by the late 2020s. From a legal perspective, participants should ensure compliance with the new Act’s requirements, seek local advice on permitting and grid connection agreements, and structure their consortia to align with policy preferences — for example, involving Korean public sector partners or maximizing local supply chain content to improve bid scores. It is also advisable to monitor related policy developments, including any changes in renewable energy certificates, carbon pricing, or localization mandates, that could impact project viability. The opportunity in Korea is significant, but success will depend on understanding and navigating the evolving regulatory landscape.

Dentons perspective

• New framework in Force: The Offshore Wind Promotion Act fundamentally transforms the project development landscape, introducing government-designated zones and a streamlined permitting process. Companies should align project pipelines with this new framework, prioritizing opportunities within the designated zones and adhering to set timelines. Key provisions are expected to take effect in early 2026.
• Watch key dates and deadlines: Market participants should carefully track critical milestones — including auction rounds scheduled for late 2025 and early 2026 under the competitive bidding roadmap; the anticipated Enforcement Decree, expected by Q1 2026, which will detail permitting procedures; and the Offshore Wind Promotion Act’s full effective date (one year post-promulgation in 2026), when the new zone regime will formally take effect. Staying ahead of these developments will enable investors to position strategically and avoid missing windows for stakeholder input or bid preparation.
• Partner and localize: Given the emphasis on local consultation and strong state involvement, international developers should consider partnering with Korean entities, such as KEPCO’s generation subsidiaries or local project developers. Such partnerships can offer advantages in the site selection process and support navigation of local content requirements and regulatory nuances — for example, facilitating compliance with cabotage restrictions and leveraging domestic supply chains. Likewise, turbine manufacturers and service providers may wish to explore local manufacturing, workforce training, or technology transfer initiatives to strengthen their competitiveness under revised evaluation criteria.
• Grid and permitting due diligence: Robust due diligence on grid connection and permitting should be a priority for any prospective site. Developers should verify available grid capacity and planned upgrades in the target region, and engage proactively with MOTIE and KEPCO regarding transmission planning. At the same time, comprehensive environmental and community assessments are essential — projects will advance more smoothly in zones with fewer environmental conflicts and supportive local stakeholders. Proactively incorporating community benefit-sharing arrangements and robust environmental mitigation measures into project plans is strongly recommended, even if not strictly mandated, to reduce the risk of delays.
• Stay adaptive to policy shifts: Maintain a flexible strategy. Korea’s regulatory environment continues to evolve — for example, if auction rules, incentive schemes, or electricity market regulations change under the new government, investors should be ready to adjust contract structures and development models accordingly. Regular consultation of updated legal advisories and engagement with Korean industry forums is advisable. While the government’s strong commitment suggests a trend toward facilitative policies, maintaining compliance and agility in response to new rules will be critical to fully capitalizing on Korea’s offshore wind opportunity.