Coal - South Korea

The Coal Market in South Korea is witnessing a negligible decline, influenced by factors such as shifting energy policies, increasing environmental concerns, and competition from renewable energy sources, all impacting its growth trajectory within the broader Fossil Fuels Market.

Customer preferences: Consumers in South Korea are showing a growing preference for cleaner energy alternatives, driven by heightened environmental awareness and a desire for sustainable practices. This shift is particularly notable among younger demographics who prioritize eco-friendly lifestyles and support government initiatives aimed at reducing carbon emissions. Additionally, urbanization and the rise of smart city projects are fostering a cultural shift towards efficient energy consumption, further diminishing the appeal of coal in favor of renewable energy sources like solar and wind power.

Trends in the market: In South Korea, the coal market within the fossil fuels sector is experiencing a notable decline as consumers increasingly gravitate towards cleaner energy sources. This trend is bolstered by government policies aimed at reducing greenhouse gas emissions and enhancing energy efficiency. The younger population, particularly environmentally conscious millennials and Gen Z, is advocating for sustainable practices, contributing to a decrease in coal's popularity. Moreover, urbanization and smart city initiatives are promoting the adoption of renewable energy solutions, compelling industry stakeholders to reconsider their strategies and invest in greener technologies to remain competitive in an evolving energy landscape.

Local special circumstances: In South Korea, the coal market within the fossil fuels sector is facing significant challenges due to a combination of cultural attitudes, regulatory frameworks, and geographical factors. The country's commitment to the Paris Agreement and its aggressive climate policies, such as the Green New Deal, are pushing industries to transition away from coal. South Korea's limited domestic coal reserves further complicate the situation, making the nation reliant on imports, which are increasingly scrutinized for their environmental impact. Additionally, the rise of public awareness campaigns and community engagement around air quality issues has fostered a strong societal push towards renewable energy adoption, compelling coal stakeholders to adapt or risk obsolescence.

Underlying macroeconomic factors: The coal market in South Korea is significantly influenced by macroeconomic factors such as global energy price fluctuations, national economic stability, and fiscal policies aimed at promoting sustainable energy solutions. Global trends towards decarbonization and renewable energy adoption are reshaping demand for coal, pressuring prices and profitability. Concurrently, South Korea's economic health, characterized by its reliance on energy imports and industrial output, affects coal consumption patterns. Government initiatives, including subsidies for renewable energy projects and investments in cleaner technologies, further challenge the coal sector, compelling stakeholders to pivot towards more sustainable practices to remain competitive in a rapidly evolving energy landscape.

Data coverage:

The data encompasses B2B enterprises. Figures are based on the value of electricity production in the energy market.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as annual reports of the market-leading companies and industry associations, third-party studies and reports, national statistical offices, international institutions, and the experience of our analysts.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting electricity generation due to the non-linear growth of this market, especially because of the direct impact of climate change on the market.

Additional notes:

The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year.