South Korea Green Hydrogen Market Research Report: Forecast (2026-2032)

South Korea Green Hydrogen Market Key Takeaways

• The South Korea green hydrogen market was valued at USD 50.5 million in 2025 and is projected to grow from USD 76.4 million in 2026 to USD 968 million by 2032.
• The industry is projected to witness steady growth at a CAGR of 52.9% during 2026–2032.
• Alkaline electrolysis dominated the market by technology, accounting for approximately 48.6% of the total market share in 2026.
• Refining & petrochemicals remained the leading end-use industry, capturing nearly 34.9% of the market in 2026.
• The market is moderately consolidated, with the top five companies collectively accounting for approximately 63.0% of the market share in 2026.

South Korea Green Hydrogen Market Size & Outlook

The green hydrogen market in South Korea was valued at USD 50.5 million in 2025 and is projected to reach USD 76.4 million in 2026, before expanding to USD 968 million by 2032, registering a robust CAGR of 52.9% during 2026–2032.

Market expansion is primarily driven by South Korea's accelerated transition toward a hydrogen-based energy system, increasing industrial decarbonization initiatives, and rising deployment of renewable-powered electrolysis projects. Growing investments across hydrogen production, storage, transportation, and industrial utilization continue to strengthen the country's renewable hydrogen economy, while supporting the commercialization of low-carbon hydrogen technologies across multiple end-use sectors.

South Korea continues to reinforce its long-term hydrogen strategy through a comprehensive regulatory and policy framework. According to the Ministry of Trade, Industry and Energy (MOTIE), the government is implementing the Hydrogen Economy Promotion and Hydrogen Safety Management Act alongside the national hydrogen roadmap to establish operational standards, safety regulations, and financial support mechanisms for hydrogen production, storage, transportation, and distribution. Furthermore, South Korea's long-term hydrogen policy targets supplying over 5 million tonnes of hydrogen annually by 2040, positioning hydrogen as a strategic pillar of national energy security and industrial competitiveness. This policy direction is accelerating investments in the clean hydrogen value chain and strengthening market confidence among domestic and international investors.

The market outlook is further supported by substantial public investment in renewable energy and hydrogen infrastructure. According to the Government of South Korea, approximately USD 43 billion has been earmarked for renewable energy development with a strong emphasis on expanding the . The investment supports the development of renewable electricity capacity, advanced electrolysis technologies, hydrogen logistics infrastructure, and integrated industrial projects, thereby creating favorable conditions for large-scale commercialization of green hydrogen infrastructure and renewable fuel production.

Looking ahead, South Korea continues to position itself as one of Asia's leading future hydrogen economies through a balanced strategy of domestic production and international supply diversification. According to the 2050 Carbon Neutral Strategy and MOTIE's hydrogen roadmap, the country aims to secure approximately 27.9 million metric tonnes of clean hydrogen annually by 2050, including around 3 million metric tonnes of green hydrogen and 2 million metric tonnes of blue hydrogen, while importing the remaining clean hydrogen requirements through global supply partnerships. This long-term strategy is expected to accelerate investments across hydrogen import terminals, carrier technologies, industrial applications, and cross-border hydrogen trade, providing a strong foundation for sustained market expansion beyond the forecast period.

South Korea Green Hydrogen Market Key Indicators

• According to the Korea Power Exchange (KPX, 2024), the inaugural Clean Hydrogen Power Generation Bidding Market awarded approximately 6,500 GWh of clean hydrogen-based electricity generation under 15-year power purchase contracts. The long-term auction mechanism is strengthening revenue certainty for project developers, accelerating investments in green hydrogen production, clean fuel imports, and utility-scale hydrogen power generation across South Korea.
• As per the Ministry of Trade, Industry and Energy (MOTIE, 2025), South Korea implemented the Clean Hydrogen Certification Scheme requiring certified clean hydrogen to achieve lifecycle greenhouse gas emissions of no more than 4.0 kg CO₂e per kg H₂, with four certification grades. The regulatory framework is establishing standardized sustainability criteria for hydrogen production and imports while improving market transparency and supporting industrial decarbonization.
• According to H2KOREA (Hydrogen Convergence Alliance, 2024), South Korea operates 400 hydrogen refueling stations nationwide, up from 250 in 2024, one of the world's largest hydrogen refueling networks. The expanding infrastructure is supporting fuel cell electric buses, commercial vehicles, and hydrogen mobility deployment while creating sustained demand for domestically produced and imported green hydrogen.
• By the Ministry of Environment (Republic of Korea, 2025), approximately USD 267 million has been allocated to support hydrogen-powered commercial vehicles and hydrogen refueling infrastructure. The investment is accelerating clean transportation adoption, expanding hydrogen consumption, and strengthening South Korea's low-carbon mobility ecosystem.

South Korea Green Hydrogen Market  Scope

South Korea Green Hydrogen Market Growth Drivers

Expanding Industrial Decarbonization Initiatives Accelerate Green Hydrogen Adoption

South Korea’s green hydrogen market is gaining momentum as the government strengthens industrial decarbonization under the 11th Basic Plan for Long-Term Electricity Supply and Demand (2024) and the Hydrogen Economy Promotion and Hydrogen Safety Management Act. According to the Ministry of Trade, Industry and Energy (MOTIE, 2025), the government has designated 15 clean hydrogen specialized business entities to accelerate domestic hydrogen production, utilization, and supply chain development. This policy framework is encouraging greater adoption of renewable hydrogen production, supporting industrial fuel switching, and reinforcing the country's hydrogen value chain across power generation and heavy industries.

Simultaneously, state-owned enterprises and major industrial companies are accelerating commercialization of hydrogen infrastructure. According to Korea Gas Corporation (KOGAS, 2025), construction activities continue at the Boryeong Clean Hydrogen Demonstration Complex, integrating liquid hydrogen receiving, storage, and distribution facilities to strengthen future import capabilities. In parallel, POSCO Holdings advances its HyREX hydrogen-based ironmaking technology to reduce carbon emissions from steel production. These developments are expanding the clean hydrogen ecosystem, strengthening industrial hydrogen demand, and supporting long-term market growth across South Korea.

Recent Trend

Digitalization and High-Efficiency Electrolysis in Hydrogen Production

South Korea is accelerating the digital transformation of its green hydrogen technology ecosystem by integrating artificial intelligence and advanced diagnostics into next-generation electrolysis systems. According to the Korea Institute of Machinery and Materials (KIMM, 2025), Korea's first 20 kW-class anode-supported solid oxide electrolysis cell (SOEC) system successfully demonstrates more than 3,000 hours of continuous operation with electrical efficiency exceeding 83%. The project, supported by MOTIE, advances smart electrolyzer systems capable of improving operational reliability and lowering hydrogen production costs through data-driven performance optimization.

The trend is further reinforced through collaboration between research institutes and industrial manufacturers to commercialize intelligent hydrogen production technologies. According to the Korea Institute of Machinery and Materials (KIMM, 2025), the institute is advancing next-generation Solid Oxide Electrolysis Cell (SOEC) technology by developing systems with electrical efficiency exceeding 85%, incorporating AI-based diagnostic and lifetime prediction technologies to improve operational reliability, durability, and commercial deployment of high-efficiency green hydrogen production systems.

South Korea Green Hydrogen Market Opportunities and Challenges

Cost Competitiveness Challenges Accelerate Electrolyzer Innovation

The commercialization of green hydrogen in South Korea continues to face challenges in green hydrogen market, due to the high capital cost of electrolysis technologies and supporting infrastructure. According to the International Renewable Energy Agency (IRENA), installed costs for alkaline electrolyzers range from approximately USD 500–1,400 per kW, while PEM electrolyzers range from approximately USD 1,100–1,800 per kW, increasing the investment required for large-scale renewable hydrogen projects. These cost barriers continue to influence the deployment of advanced electrolyzer systems and the broader green hydrogen production ecosystem.

The market is simultaneously creating significant opportunities for advanced electrolyzer commercialization and domestic technology development. In April 2025, Hyundai Motor Group unveiled its next-generation hydrogen strategy at the Seoul Mobility Show, introducing the all-new NEXO fuel-cell vehicle while expanding its HTWO hydrogen business to integrate hydrogen production, utilization, and infrastructure across industrial applications. The company also continues developing PEM electrolysis technologies and large-scale green hydrogen demonstration projects, supporting the commercialization of advanced electrolysis technology, strengthening the hydrogen innovation ecosystem, and improving the long-term competitiveness of South Korea's green hydrogen industry.

Segmentation Insights

Commercial Maturity Sustains Alkaline Electrolysis Leadership

Alkaline Electrolysis dominated the South Korea green hydrogen industry, accounting for approximately 48.6% of the industry share in 2026. The technology maintains its leadership owing to its commercial maturity, lower capital cost, and suitability for large-scale industrial hydrogen production projects. According to the International Energy Agency (IEA, Global Hydrogen Review 2025), alkaline electrolyzers continue to represent the largest share of globally deployed electrolysis capacity because of their proven performance in utility-scale renewable hydrogen projects. South Korea is leveraging this mature technology to accelerate industrial electrolysis systems, strengthen utility-scale hydrogen production, and support expanding clean energy infrastructure across heavy industrial clusters.

The dominance of alkaline electrolysis is further reinforced through large-scale industrial investments and technology commercialization initiatives. In September 2024, HD Hyundai Electric signed a strategic agreement with Finland-based Convion to expand high-efficiency hydrogen and fuel cell technologies for industrial energy applications, strengthening the country's advanced hydrogen manufacturing ecosystem. In parallel, government-backed R&D programs continue supporting domestic electrolyzer localization and manufacturing competitiveness, improving supply chain resilience and reducing dependence on imported systems. These developments are enhancing the alkaline electrolyzer market, supporting scalable deployment of renewable hydrogen, and reinforcing South Korea's long-term competitiveness in clean hydrogen production. Based on Technology Type, the India green hydrogen industry is segmented into:

• Alkaline Electrolysis
• Proton Exchange Membrane (PEM) Electrolysis
• Solid Oxide Electrolysis (SOEC)
• Anion Exchange Membrane (AEM) Electrolysis

Refinery Decarbonization Sustains End-Use Market Leadership

Refining & Petrochemicals dominated the South Korea green hydrogen industry, accounting for approximately 34.9% of the industry share in 2026. The segment's leadership is supported by South Korea's large refining base, which continues to require significant hydrogen volumes for hydroprocessing and desulfurization. According to the Energy Institute, Statistical Review of World Energy 2025, South Korea's refinery throughput averaged approximately 2.6 million barrels per day in 2024, making it one of the largest refining industries in Asia. This substantial processing capacity continues to drive demand for renewable refinery hydrogen, expand clean petrochemical feedstocks, and accelerate the integration of green hydrogen into refinery decarbonization strategies.

The segment's leadership is further supported by continued investments across South Korea's hydrogen infrastructure ecosystem, strengthening the broader hydrogen value chain. In 2024, Air Liquide Korea and SK Plug Hyverse inaugurated a liquid hydrogen refueling station in Ulsan, expanding the country's liquid hydrogen distribution network and supporting the commercialization of hydrogen mobility. The development enhances hydrogen logistics capabilities in one of South Korea's major industrial regions while reinforcing supply chain readiness, creating favorable conditions for the wider adoption of low-carbon hydrogen and renewable hydrogen infrastructure across industrial and energy applications. By the end-user segment, the industry is segmented into:

• Refining & Petrochemicals
• Fertilizers & Ammonia
• Steel & Heavy Industry
• Mobility & Transportation
• Power & Utilities
• Chemicals & Other Industrial Users

South Korea Green Hydrogen Industry Competitive Analysis

The South Korea green hydrogen industry remains moderately consolidated, with leading industrial conglomerates and energy companies driving project development, electrolyzer deployment, and hydrogen infrastructure investments. The top five companies account for approximately 63% of the market in 2026, supported by integrated capabilities across hydrogen production, mobility, engineering, and industrial decarbonization.

Leading Companies in the South Korea Green Hydrogen Industry

• Hyundai Motor Company
• POSCO Holdings Inc.
• SK E&S Co., Ltd.
• Doosan Enerbility Co., Ltd.
• Hanwha Solutions Corporation
• HD Hyundai Co., Ltd.
• Korea Gas Corporation (KOGAS)
• Samsung C&T Corporation
• Lotte Chemical Corporation
• GS Engineering & Construction Corp.

South Korea Green Hydrogen Industry News and Recent Developments

April 2025: Hyundai Motor Group Unveils Next-Generation HTWO Hydrogen Strategy and All-New NEXO

At the Seoul Mobility Show 2025, Hyundai Motor Group introduced its next-generation HTWO hydrogen business strategy alongside the all-new NEXO fuel cell electric vehicle. The expanded HTWO platform broadens Hyundai's hydrogen business from mobility into production, storage, transportation, and industrial applications, reinforcing the company's role in building an integrated hydrogen ecosystem across South Korea and global markets.

Impact Analysis: The expanded HTWO strategy is expected to accelerate commercialization of hydrogen technologies beyond transportation by strengthening integration across production, logistics, and industrial end-use sectors. The initiative also supports broader adoption of green hydrogen infrastructure and encourages strategic partnerships across South Korea's clean energy value chain.

October 2025: BHP and POSCO Partner to Accelerate HyREX Hydrogen-Based Ironmaking Technology

BHP and POSCO Holdings announced a strategic partnership in October 2025 to advance the commercialization of HyREX (Hydrogen Reduction Ironmaking) technology, a next-generation process that utilizes hydrogen in a fluidized bed reactor to produce direct reduced iron (DRI) while significantly lowering carbon emissions compared with conventional blast furnace operations. The collaboration also includes Primetals Technologies, which contributes engineering expertise to support the development and scale-up of the HyREX process for commercial steel production.

Impact Analysis: The partnership is expected to accelerate the commercialization of hydrogen-based steelmaking, strengthening long-term demand for green hydrogen within South Korea's heavy industrial sector. It also reinforces the country's industrial decarbonization strategy by expanding hydrogen applications in steel production, encouraging investments in renewable hydrogen supply, advanced ironmaking technologies, and integrated clean industrial value chains.