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

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

The South Korea Green Hydrogen Market size is valued at around USD 32.20 million in 2025 and is projected to reach USD 1,024.15 million by 2032. Along with this, the market is estimated to grow at a CAGR of around 63.92% during the forecast period, i.e., 2026-32.

South Korea Green Hydrogen Market Key Takeaways:

• The South Korean government is actively implementing its Hydrogen Economy Roadmap and Clean Hydrogen Certification System, aimed at promoting low-carbon hydrogen production and accelerating the transition to a net-zero energy future by 2050. These policies establish clear standards for hydrogen generation, storage, and utilization while supporting large-scale investment in the sector.
• The development of regional hydrogen clusters, such as the Ulsan Green Hydrogen Town and Jeonnam Hydrogen Industrial Complex, reflects South Korea’s efforts to create localized clean energy ecosystems. These clusters integrate hydrogen production, refueling infrastructure, and industrial applications to support both domestic demand and potential future exports.

South Korea Green Hydrogen Market Key Trends & Developments:

October 2025: South Korea advanced its hydrogen infrastructure with the expansion of the Ulsan Green Hydrogen Town and the launch of Jeonnam’s large-scale hydrogen industrial complex. These projects include new production and refueling facilities, enabling wider use of hydrogen in mobility, industry, and energy storage. Backed by government investment and partnerships with companies like Hyundai Motor and KOGAS, these developments reinforce South Korea’s position as a regional leader in clean hydrogen innovation and deployment.

September 2025: The Korea Institute of Machinery & Materials (KIMM) announced the successful development of an AI-powered solid oxide electrolysis cell (SOEC) system capable of achieving more than 85% efficiency in hydrogen production. The system uses artificial intelligence to monitor operations, predict maintenance needs, and improve overall performance. This marks a major step toward commercial-scale, digitally optimized hydrogen generation in South Korea.

South Korea Green Hydrogen Market Scope:

South Korea Green Hydrogen Market Drivers:

Growing Focus on Carbon Neutrality and Clean Energy Transition

The South Korean green hydrogen industry is mainly driven by the country’s strong push toward carbon neutrality by 2050. The government is replacing fossil fuels with hydrogen produced from renewable energy to lower emissions and energy imports. Policies like the Hydrogen Economy Roadmap and the Clean Hydrogen Certification System are promoting cleaner production and wider use of green hydrogen. Major companies such as POSCO Holdings are adopting hydrogen-based steelmaking, while Hyundai Motor is expanding hydrogen-powered vehicles and fuel cell systems.

Similarly, Hanwha Group is investing in solar-powered hydrogen projects to link renewable generation with clean fuel production. These combined government efforts and private sector initiatives are helping South Korea build a sustainable hydrogen economy and achieve its long-term environmental goals.

Rapid Expansion of Hydrogen Infrastructure and Industrial Integration

The rapid development of hydrogen infrastructure is a major growth driver for the South Korea Green Hydrogen Market. The country is building large-scale production plants, storage facilities, and refueling stations to support industrial and transport applications. A leading example is the Ulsan Green Hydrogen Town, which uses hydrogen pipelines and refueling hubs to supply local industries and mobility networks. Similarly, the HyNet project, involving companies like KOGAS and Hyundai Motor, is expanding a nationwide network of hydrogen refueling stations to encourage clean transportation.

Additionally, in industries such as steel, chemicals, and power generation, hydrogen is being integrated to replace carbon-intensive fuels. Supported by government subsidies, R&D programs, and public–private partnerships, this infrastructure growth is transforming South Korea into a major hub for hydrogen production, distribution, and utilization.

South Korea Green Hydrogen Market Trends:

Integration of AI & Digital Optimization in Hydrogen Production

The South Korea green hydrogen industry is increasingly embracing artificial intelligence (AI) to enhance efficiency, reliability, and automation across production and storage processes. AI tools are being applied to optimize electrolyzer performance, monitor energy input from renewables, and anticipate system maintenance needs before failures occur. A key example is the Korea Institute of Machinery & Materials (KIMM), which recently introduced a solid oxide electrolysis cell (SOEC) system embedded with AI-driven diagnostic technology to track performance and improve operational efficiency. The system targets over 85% energy efficiency, setting a new benchmark for smart hydrogen plants.

Likewise, Doosan Enerbility and Hyundai Motor Group are adopting AI-powered monitoring systems to manage fuel cell operations and streamline hydrogen utilization. These advancements are helping South Korea transition toward a fully automated, intelligent hydrogen infrastructure that lowers costs, boosts safety, and supports sustainable energy goals.

Development of Specialized Hydrogen Training and Research Centers

With rapid industrial expansion, South Korea is also focusing on developing training and research centers to strengthen hydrogen technology expertise. Institutions like the Ulsan Hydrogen Industry Promotion Agency and Korea Institute of Energy Research (KIER) have launched dedicated programs to train professionals in electrolyzer operation, hydrogen safety, and system maintenance.

These centers provide simulation-based learning and practical experience in handling hydrogen infrastructure. For instance, the Ulsan Hydrogen Mobility Center offers real-world testing environments for fuel cell vehicles and refueling stations. By fostering a skilled workforce and advancing R&D capabilities, these centers are accelerating the growth and long-term sustainability of South Korea’s green hydrogen industry.

South Korea Green Hydrogen Market Challenges:

High Cost of Production and Maintenance

One of the key challenges in the Green Hydrogen Market of South Korea is the high cost of production, acquisition, and maintenance of hydrogen technologies. Setting up a green hydrogen facility involves a significant capital outlay, as electrolyzer systems can cost between USD 800 to 1,200 per kW for alkaline types and even higher, up to USD 1,800 per kW, for advanced PEM models. Projects such as the Ulsan Green Hydrogen Town and POSCO’s hydrogen-based steel production require heavy investments in renewable energy integration, hydrogen storage, and pipeline networks.

Moreover, maintenance and safety infrastructure add to recurring costs, often amounting to 10–15% of annual operating budgets. These high expenses, combined with limited domestic manufacturing of hydrogen components, make large-scale deployment challenging, especially for mid-sized industrial players and regional developers.

 South Korea Green Hydrogen Market (2026-32) Segmentation Analysis:

The South Korea Green Hydrogen Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Technology Type

• Alkaline Electrolyzers
• Solid Oxide Electrolyzers (SOE)
• Proton Exchange Membrane (PEM) Electrolyzers

The Alkaline Electrolyzers segment leads the South Korea Green Hydrogen Market owing to its proven efficiency, cost-effectiveness, and suitability for large-scale applications. This technology is widely adopted for industrial hydrogen generation as it ensures stable performance and lower operational expenses compared to other systems. A notable example is Samsung C&T’s collaboration with Nel ASA, which involves supplying 10 MW of alkaline electrolyzers for South Korea’s first pink hydrogen pilot project that utilizes surplus nuclear power for hydrogen production.

Additionally, major initiatives like the Ulsan Green Hydrogen Town and POSCO’s clean steel projects also employ alkaline systems to ensure consistent hydrogen output. Supported by government programs and corporate investments from Doosan and KOGAS, alkaline electrolyzers continue to dominate South Korea’s shift toward a sustainable hydrogen economy.

Based on the End User

• Mobility & Transportation
• Industrial Use
• Chemical Production
• Others

The industrial use segment dominates the South Korea Green Hydrogen Market, supported by the nation’s strong manufacturing and heavy industry base. Hydrogen is increasingly being adopted in steelmaking, refining, and chemical processing as industries work toward carbon neutrality. For instance, POSCO Holdings is integrating green hydrogen into its steel production process to reduce dependence on coal and cut emissions.

Similarly, major chemical producers such as Lotte Chemical and Hanwha Solutions are investing in hydrogen-based feedstocks for cleaner production lines. The government’s push for industrial decarbonization and large-scale hydrogen infrastructure projects further strengthens this trend. With growing integration across multiple industrial sectors, the industrial use of green hydrogen remains the most influential driver of South Korea’s hydrogen economy.

Leading Manufacturers of the South Korea Green Hydrogen Market:

• Lotte Chemical

Established in 1976, Lotte Chemical is advancing its clean energy portfolio through hydrogen production and utilization. The company is developing blue and green hydrogen projects to decarbonize its manufacturing processes and supply hydrogen for transportation and industrial use. Lotte’s strategy aligns with South Korea’s 2050 carbon neutrality goals.

• SK E&S

A subsidiary of the SK Group, SK E&S plays a pivotal role in building South Korea’s hydrogen economy. The company is engaged in large-scale green and blue hydrogen production projects, carbon capture initiatives, and nationwide hydrogen distribution networks. Its goal is to create a complete hydrogen value chain that connects production, storage, and end-user applications.

• HTEC (Hydrogen Technology & Energy Corporation)

HTEC is actively involved in advancing hydrogen energy systems and refueling infrastructure in South Korea. The company focuses on delivering integrated hydrogen solutions that support transportation, industrial, and energy sectors, strengthening the nation’s green hydrogen economy.

Hyundai Motor Company, Doosan Heavy Industries & Construction, Hyosung Corporation, POSCO Holdings, Korea Gas Corporation (KOGAS), Hanwha Group, GS Engineering & Construction, and Others are the key players of the South Korea Green Hydrogen Market.

South Korea Green Hydrogen Market (2026-32): Regional Projection

The Southeast region dominates the South Korea Green Hydrogen Industry due to its strong industrial base and advanced energy infrastructure. Cities like Ulsan, Busan, and Pohang are leading hydrogen hubs, supported by large petrochemical plants and port facilities. Ulsan, in particular, has been developed as the country’s first Hydrogen Pilot City, hosting major projects such as the Ulsan Green Hydrogen Town and HyNet’s hydrogen refueling network.

Moreover, companies like Hyundai Motor and POSCO are actively investing in hydrogen vehicles and green steel production in this region. With government support and ongoing private investments, the Southeast has become the center of hydrogen production, storage, and transportation, driving South Korea’s shift toward a low-carbon and sustainable energy future.

Gain a Competitive Edge with Our South Korea Green Hydrogen Market Report

• South Korea Green Hydrogen Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• South Korea Green Hydrogen Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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