Trend Stagnating Korean transport energy demand under population ageing and weaker freight

Summary

Transport energy demand in Korea is entering a period of stagnation. Population decline and ageing, along with overseas travel becoming commonplace, are slowing growth in vehicle registrations and in the distance driven by private cars. Gasoline is expected to remain the main source of growth in transport fuel demand. However, stagnant economic growth and flat output in major manufacturing industries other than semiconductors reduce diesel use for freight, so overall oil demand for transport declines. The one strongly growing component is electricity for transport, driven by the spread of electric vehicles. With freight-heavy petrochemical and steel industries also weak, transport energy demand is projected to slip 0.3 percent a year over the period.