Issue Korean vulnerability: Energy dependence and cost

Summary

KDI describes Korea's 95% dependence on imported energy as more than an energy statistic, calling it the figure where the country's climate and geopolitical vulnerabilities converge. First, because the economy relies on energy-intensive manufacturing, moving to carbon neutrality costs Korea much more than countries less dependent on imports. Second, AI chip production and data centres consume large amounts of power, so pursuing AI competitiveness and carbon neutrality at once creates a semiconductor-energy dilemma sharper than in other advanced economies. Third, price volatility driven by shifting energy geopolitics directly threatens manufacturing competitiveness. The report also sees the global energy transition as a chance to reduce this vulnerability and open new industries.