Hydrogen Economy in Korea 2025: Expanded Government Support and Strategies for Enhancing Global Competitiveness
Editor
A New Turning Point for Korea’s Hydrogen Economy
As of November 2025, Korea’s hydrogen economy is experiencing rapid growth, fueled by strong government policy support and active private sector investment. According to the ‘4th Basic Plan for Hydrogen Economy Implementation’ announced by the Ministry of Trade, Industry and Energy, the government plans to invest a total of 2.3 trillion won in the hydrogen industry from 2025 to 2030, a 34% increase from the previous year. This large-scale investment is considered a key strategy for Korea to leap forward as a leading nation in the global hydrogen economy.
The size of Korea’s hydrogen market is projected to grow by 38%, from 4.2 trillion won in 2024 to 5.8 trillion won in 2025, significantly surpassing the global hydrogen market growth rate of 24%. Particularly, as Korean companies’ technological prowess in hydrogen fuel cell power generation and hydrogen mobility is recognized globally, the stock prices of major domestic hydrogen-related companies have risen by an average of 42% this year, far exceeding the KOSPI index growth rate of 18%, reflecting investors’ expectations for the hydrogen economy.
Korea’s status in the global hydrogen market has also significantly improved. According to the latest report by the International Energy Agency (IEA), Korea ranks second in the world (28%) in the hydrogen fuel cell technology sector, following Japan (35%), and forms a top-three structure with Germany (22%) and China (20%) in the electrolysis technology sector. In particular, Korean companies have established a dominant position by capturing 45% of the global market in the large-capacity fuel cell systems sector.
The background of this growth lies in the Korean government’s systematic hydrogen economy roadmap and the innovative technology development by private companies. The government aims to expand hydrogen production to 1.94 million tons annually by 2030 and increase the number of hydrogen refueling stations from the current 310 to 2,000. Additionally, by introducing a clean hydrogen certification system, the quality standards for green hydrogen and blue hydrogen are clarified, enhancing the sustainability of the hydrogen industry.
Technological Innovation and Market Expansion of Major Companies
The major companies leading Korea’s hydrogen economy are strengthening their competitiveness in the global market with differentiated strategies. Hyundai Motor Group is leading the market in the hydrogen mobility sector with overwhelming technological prowess. Hyundai’s NEXO model recorded a 42% market share in the global hydrogen vehicle market in 2024, surpassing Japan’s Toyota Mirai (35%). Notably, Hyundai’s third-generation fuel cell system has improved efficiency by 13% compared to the previous generation, and its durability has increased by 25%, from 160,000 km to 200,000 km.
Hyundai Motor Group’s hydrogen business revenue is expected to grow by 33%, from 1.8 trillion won in 2024 to 2.4 trillion won in 2025, accounting for 8.2% of the group’s total revenue. Particularly, the export of hydrogen trucks and buses is rapidly increasing in the commercial vehicle sector, with plans to deliver a total of 1,200 hydrogen commercial vehicles to the European and North American markets, a 180% increase from the previous year, demonstrating the global recognition of Hyundai’s hydrogen mobility technology.
In the power generation fuel cell sector, Doosan Group affiliates are achieving remarkable results. Doosan Enerbility maintains the world’s No. 1 market share (31%) in the large-capacity fuel cell systems sector and has set a 2025 order target of 2.1 trillion won, a 31% increase from the previous year’s performance of 1.6 trillion won. Particularly, with the surge in demand for data center fuel cells in the U.S. market, Doosan Enerbility has signed large contracts worth a total of 850 billion won with big tech companies such as Microsoft and Amazon.
Doosan Fuel Cell is showing innovative achievements in the distributed power fuel cell sector. The company’s 440kW fuel cell system has achieved a power generation efficiency of 47.5%, recording the industry’s highest level of performance. This figure significantly exceeds the efficiency of conventional gas turbine power plants (42%), securing both eco-friendliness and economic feasibility. Doosan Fuel Cell’s 2025 revenue is projected to be 420 billion won, a 28% increase from the previous year.
In the hydrogen production and storage sector, Hyosung Heavy Industries is gaining attention. The company possesses proprietary technology in the manufacture of key components for liquefied hydrogen storage tanks and hydrogen refueling stations, recording a 35% market share in the domestic hydrogen refueling station market in 2024. Hyosung Heavy Industries’ 700bar high-pressure hydrogen storage container has been recognized for its world-class safety, obtaining both European CE certification and U.S. DOT certification. Based on this, the company has set a 2025 overseas order target of 180 billion won, a 65% increase from the previous year.
Petrochemical giants are also expanding their investments in the hydrogen production sector. SK Innovation has completed the construction of a blue hydrogen production facility with an annual capacity of 30,000 tons at the Ulsan petrochemical complex, scheduled to begin commercial operation in 2026. This facility produces high-purity hydrogen by refining by-product hydrogen generated from existing refining processes, significantly improving economic feasibility by reducing production costs to 3,200 won per kg. POSCO Holdings plans to produce 5,000 tons of green hydrogen annually by establishing an electrolysis-based green hydrogen production facility at the Gwangyang steelworks, which will be the largest green hydrogen production facility in Korea.
Korea Gas Corporation is focusing on building hydrogen infrastructure and expanding the distribution network. The company plans to construct a total of 340 km of hydrogen pipelines in major cities nationwide by 2025, an efficient approach utilizing the existing natural gas pipeline network. Additionally, by investing 1.2 trillion won in the construction of a liquefied hydrogen terminal, the company plans to operate facilities capable of storing and supplying 100,000 tons of liquefied hydrogen annually from 2027.
Global Competitive Environment and Future Outlook
The global competitive environment faced by Korean hydrogen companies is becoming increasingly fierce. In Japan, major companies such as Toyota, Panasonic, and Toshiba have long experience and patents in hydrogen fuel cell technology, remaining strong competitors. Particularly, Toyota plans to launch a next-generation fuel cell system in 2025, achieving a 30% improvement in power density compared to the current system, which is interpreted as a challenge to Hyundai’s technological superiority.
China is experiencing rapid growth in the hydrogen industry, supported by strong government policy. The Chinese government aims to distribute 100,000 hydrogen vehicles and build 1,000 hydrogen refueling stations by 2025, planning a total investment of 15 trillion won. Particularly, China’s Weichai Power and SAIC are directly competing with Korean companies in the commercial vehicle fuel cell sector, drawing attention. Additionally, China possesses the world’s largest production capacity in electrolysis equipment manufacturing, posing a threat to Korean companies in terms of price competitiveness.
In the European market, German and Danish companies hold leading positions in electrolysis technology and wind-linked green hydrogen production. Germany’s Siemens Energy and Denmark’s Nel possess high technological capabilities in large-capacity electrolysis systems and have secured a competitive edge in providing integrated solutions linked to renewable energy. In response, Korean companies are strengthening local partnerships in Europe, with Doosan Enerbility signing a joint development agreement for fuel cell technology with Germany’s MAN Energy Solutions.
In the U.S. market, the Biden administration’s Inflation Reduction Act (IRA) and Clean Hydrogen Hub program are accelerating the growth of the hydrogen industry. The U.S. government aims to produce 10 million tons of clean hydrogen annually by 2030, operating a support program worth 7 billion dollars. Korean companies are leveraging this opportunity to expand their presence in the U.S. market, with Hyundai planning to build a fuel cell system production plant in Georgia.
From a technological perspective, the core challenges of the hydrogen industry are cost reduction and efficiency improvement. Currently, the production cost of green hydrogen is 6-8 dollars per kg, but it needs to be reduced to 2-3 dollars by 2030 to compete with fossil fuels. To achieve this, improving the efficiency of electrolysis equipment and realizing economies of scale through mass production are essential. Korean companies are significantly increasing their research and development investments to address these challenges, with hydrogen-related R&D investments expected to total 840 billion won in 2025, a 42% increase from the previous year.
Hydrogen storage and transportation technology is also emerging as an important competitive factor. Liquefied hydrogen storage technology is advantageous for long-distance transportation as it can reduce volume to 1/800, but it has the drawback of high energy consumption to maintain the cryogenic temperature of minus 253 degrees Celsius. On the other hand, Liquid Organic Hydrogen Carrier (LOHC) technology can store hydrogen at room temperature, but energy loss occurs during the conversion process. Korean companies are attempting various approaches to resolve these technical trade-offs, with Hyosung Heavy Industries focusing on liquefied hydrogen storage technology and SK Innovation concentrating on LOHC technology.
The growth outlook for Korea’s hydrogen industry over the next five years is very bright. According to the latest analysis by the Korea Institute of Energy Technology, the domestic hydrogen market size is expected to grow at an average annual rate of 36%, from 5.8 trillion won in 2025 to 27.4 trillion won in 2030. Particularly, the hydrogen power generation sector is expected to expand to a capacity of 15GW by 2030, accounting for 7.1% of total power generation, providing a huge market opportunity for hydrogen-related companies. Additionally, as global policy trends to achieve carbon neutrality are strengthened, hydrogen is expected to expand its role as a key means of decarbonization in industrial sectors such as steel, petrochemicals, and cement. In this outlook, the global competitiveness and market share of Korean hydrogen companies are expected to continuously improve, providing long-term growth momentum for investors.
