A Turning Point for South Korea’s Offshore Wind: The 8.2GW Project Boom and Strategies for Securing Global Competitiveness
Editor
As of November 2025, South Korea’s offshore wind industry is at a historic turning point. According to the government’s 10th Basic Plan for Electricity Supply and Demand, an ambitious goal has been set to expand offshore wind capacity from the current 124MW to 12GW by 2030. This represents an approximately 97-fold increase, with an unprecedented global average annual growth rate of 150%. According to statistics from the Ministry of Trade, Industry and Energy, ongoing offshore wind projects nationwide total 8.2GW, with 3.6GW scheduled to begin construction between 2025 and 2027.
This rapid growth is driven by national needs to achieve carbon neutrality by 2050 and strengthen energy security. According to the Korea Energy Agency, offshore wind boasts an average wind speed 30% higher than onshore wind and an annual utilization rate of 35-40%, making it economically viable. The wind resources in the West and South Seas are estimated at a total of 94GW, demonstrating significant potential equivalent to 70% of the country’s current total power generation capacity (135GW). The Korea Offshore Wind Association predicts that the offshore wind market will grow by 180% year-on-year to reach 14 trillion won by 2025.
Kickoff of Mega Projects and Competitive Landscape
The current leaders in South Korea’s offshore wind market are large-scale projects. The most notable is the Shinan Offshore Wind Farm in Jeollanam-do, the world’s largest single offshore wind project with a total capacity of 8.2GW. Led by Korea Electric Power Corporation (KEPCO), the first phase of this project, with a capacity of 2.4GW, is scheduled to begin construction in December 2025, with a total project cost of 36 trillion won. Once completed, it will produce 24 million MWh of electricity annually, enough to power approximately 7.5 million households for a year. A KEPCO official stated, “We aim to commence commercial operations by 2027, and fierce competition is underway between Denmark’s Vestas and Germany’s Siemens Gamesa in the turbine supplier selection process.”
The second mega project is the Ulsan Southeast Offshore Wind Farm, with a total capacity of 6GW. This project is the world’s largest pilot project applying floating offshore wind technology, to be installed in deep waters 50-200m deep. According to research by the Korea Institute of Ocean Science and Technology, the current cost of power generation for floating offshore wind is around $2.5 million per MW, but it is expected to drop to $1.5 million with mass production. Hyundai Heavy Industries Holdings and Samsung Heavy Industries are leading the competition in the production of floating structures, with Hyundai Heavy Industries having signed a technology cooperation agreement with Norway’s Equinor to secure world-class floating technology.
The third major project is the Incheon Gyeonggi Bay Offshore Wind Farm, with a capacity of 1.8GW. This project is unique in that it utilizes the site of an existing thermal power plant. According to Incheon City statistics, offsetting the regional economic losses from the closure of the thermal power plant with offshore wind is expected to generate an economic effect of approximately 320 billion won annually and create 2,800 jobs. Denmark’s Orsted is participating as a development partner in this project, and it is expected that the expertise of the world’s leading offshore wind developer will be fully transferred to South Korea.
The promotion of these mega projects is significantly improving the performance of domestic companies involved. CS Wind, a specialist in wind turbine towers, recorded sales of 184.7 billion won in the third quarter of 2025, a 340% increase compared to the same period last year. A company representative stated, “With a surge in orders for large towers for offshore wind, we are considering additional investments to expand production capacity.” Doosan Enerbility also saw its offshore wind turbine business sales increase by 280% in the first half of 2025 compared to the previous year, with plans to establish a dedicated offshore wind production line by 2026.
Technological Innovation and Localization of Supply Chains
Along with the rapid growth of South Korea’s offshore wind market, competition for technological innovation is intensifying. In particular, the trend towards larger turbines is accelerating, with the average capacity of currently installed turbines at 15MW, but 20MW-class super-large turbines are expected to be introduced from 2026. Vestas’ V236-15MW turbine has a rotor diameter of 236m, equivalent to the size of 2.5 football fields, and can produce 80,000 MWh of electricity annually. This is enough to power 20,000 households for a year, demonstrating 2.5 times the efficiency of existing 8MW turbines.
Korean companies are also accelerating the development of their own turbine technologies. Doosan Enerbility completed the demonstration test of its self-developed 12MW-class offshore wind turbine in October 2025, with commercialization targeted for the first half of 2026. The company’s turbine features salt-resistant coatings and a typhoon response system optimized for the Korean offshore environment, achieving 20% higher durability compared to existing foreign turbines. Samsung Heavy Industries is focusing on floating platform technology, with its self-developed semi-submersible platform capable of stable operation in waves up to 8m high, improving operational rates by 15% compared to existing platforms.
Localization of supply chains is also emerging as an important issue. Currently, the localization rate of Korean offshore wind components is around 35%, but the government has set a target to increase this to 70% by 2030. To this end, the Ministry of Industry plans to establish a support center for the localization of offshore wind components and provide 300 billion won in technology development funds to small and medium-sized enterprises. The focus is on localizing high-value-added components such as bearings, gearboxes, and power converters, with about 10 SMEs currently participating in related technology development. According to the Korea Institute of Machinery and Materials, a 10% increase in the localization rate of components is expected to result in an annual import substitution effect of 1.2 trillion won.
Innovation is also continuing in the installation and operation sectors. South Korea currently has only three offshore wind installation vessels, relying heavily on foreign companies. In response, Hyundai Heavy Industries plans to complete the construction of a next-generation installation vessel equipped with a 1,600-ton crane by the end of 2025, which will be the largest in Asia capable of installing 20MW-class super-large turbines. Given that the rental fee for installation vessels can reach $500,000 per day, owning such vessels is expected to significantly reduce costs. Additionally, Daewoo Shipbuilding & Marine Engineering is developing a dedicated installation vessel for floating turbines, aiming to secure competitiveness in the future floating offshore wind market.
The operation and maintenance (O&M) market is also rapidly growing. The global offshore wind O&M market is expected to grow fourfold from $4.5 billion in 2025 to $18 billion by 2030. Domestically, KEPCO Engineering & Construction has developed an AI-based predictive maintenance system that reduces maintenance costs by 30% compared to existing systems. This system predicts failures by analyzing turbine operation data in real-time and is currently being pilot-tested at the Southwest Offshore Wind Demonstration Complex. A KEPCO Engineering & Construction representative stated, “We plan to launch commercial services from 2026 and are also considering overseas expansion.”
However, the challenges facing South Korea’s offshore wind industry are significant. The biggest issue is the lack of grid connection infrastructure. According to KEPCO statistics, approximately 15 trillion won in transmission network investment is needed to connect all planned 8.2GW offshore wind projects, but the confirmed budget is only 6 trillion won. In particular, the existing transmission capacity in the West Coast region is insufficient to accommodate the power from the Shinan Offshore Wind Farm, making the construction of additional transmission lines urgent. The Korea Energy Economics Institute warned, “Delays in grid construction could lead to delays in offshore wind projects and instability in the power system.”
Environmental impacts and fishing conflicts are also important issues. According to the Ministry of Oceans and Fisheries, compensation for fishing damage caused by offshore wind farm construction is estimated at 200 billion won annually. In the Shinan region, in particular, there is a serious spatial conflict with seaweed farms, with some fishermen opposing offshore wind construction. In response, the government is strengthening compensation standards for fishermen and considering plans to operate aquaculture in conjunction with offshore wind farms. A Shinan County official stated, “We aim to develop a coexistence model for offshore wind and aquaculture to promote regional economic revitalization.”
The future of South Korea’s offshore wind industry depends on technological innovation, policy support, and the establishment of an industrial ecosystem. If the current growth momentum continues, South Korea is expected to emerge as the world’s third-largest offshore wind power after China and the UK by 2030. With the global offshore wind market expected to grow to $157 billion by 2030, South Korea’s share is projected to increase from the current 1% to 8%. This represents an annual market opportunity of approximately $12.6 billion, with related jobs expected to surge from the current 3,000 to 150,000.
From an investment perspective, the growth potential of South Korean offshore wind-related companies is significant. The securities industry predicts that the average annual sales growth rate of related companies will reach 40-60% over the next five years. In particular, companies with global competitiveness in turbine manufacturing, offshore structures, and O&M services are expected to have significant stock price growth potential. However, there is a prevailing opinion that a cautious approach is necessary, considering the burden of initial investment costs, technical risks, and potential policy changes.
Disclaimer: This article is for informational purposes only and does not constitute investment advice or recommendations. Investment decisions should be made at the individual’s discretion and responsibility, and it is recommended to consult with a professional before investing. The accuracy or completeness of the information provided is not guaranteed, and no responsibility is taken for any losses incurred from investments.
