Hydrogen Economy
Report summary
Hydrogen Economy – South Korea
Korea offers huge opportunities for the UK fuel cell and hydrogen companies with both public and private sectors investing heavily in the nascent hydrogen economy. Currently, the government is focused on the mobility and power generation segments with strong support measures aimed at the domestic market. In the short term, the country’s hydrogen strategy is primarily driven by economic growth and industrial competitiveness considerations and to a lesser degree, by environmental concerns. Ultimately, however, Korea sees hydrogen as a crucial part of its plan to transition to a low-carbon economy.
There is growing awareness in Korea that the UK is a world leader in the fields of basic science, advanced materials and fuel cells so British firms should find a warm reception among potential Korean customers.
Request detailed market intelligence report for hydrogen economy.
The Korean Hydrogen Market
Korea is looking to build a society that harnesses hydrogen as a primary source of energy for mobility, power generation and other industry fields. According to Korea Energy Economics Institute (KEEI), the total market size of the hydrogen industry in Korea is £9.1 billion in 2020 and is forecast to almost double to
£17.3 billion by 2030. Most of the growth in the industry is expected to come from mobility and power generation applications although industry and hydrogen handling fields are also on a steady rise.
Despite the ambitious plans of the Korean government, the public perception of hydrogen safety in the country remains one of the biggest challenges preventing the full-scale roll-out of hydrogen facilities.
Opportunity Areas for UK Companies
Korea’s high dependence on the international core technologies in the hydrogen field has created opportunities for overseas hydrogen and fuel cell companies to enter the market.
Promising areas for UK companies include hydrogen production (on-site SMR and energy-efficient water electrolysis), hydrogen handling (pipelines, compressors, storage tanks and dispensers), liquification and mobile HRS solutions, fuel cells (polymer membranes, modular filters, liquid-cooled fuel cell systems) and power generation (PAFC, SOFC technologies). While the mobility fuel cell and power generation fields already constitute a relatively well-established domestic market, hydrogen production, liquefaction, and handling represent good immediate opportunities due to a lack of domestic expertise.
The major Korean conglomerates are investing in hydrogen and collaborating internationally. Hyundai Rotem, one of the subsidiaries of Hyundai Motor Group, announced that it is looking at hydrogen production through on-site SMR as a way of moving beyond its rolling-stock manufacturing business. Its investment will focus on supplying refuelling equipment with fuel cell rolling stock such as trams as a total solution to its customers. Doosan Mobility Innovation also sees the opportunities presented by fuel cell drones and has recently announced its plans to collaborate with foreign companies to develop liquid-cooled fuel cell systems for drones and UAVs to be used as ‘last mileage delivery’ service to rural areas.
Government and Hydrogen Economy
Since President Moon Jae-In came to power in May 2017, three important legislations have been announced: Hydrogen Economy Roadmap, Hydrogen Law and the Green New Deal.
Each year the government announces a state budget for FCEV and hydrogen infrastructure projects. In December 2019, the government announced the total subsidy amount payable in 2020 to be £353.5 million, which represents a 52% increase compared to 2019. The government has also recently announced Korean Green New Deal which aims to allocate £13 billion fiscal investment for green mobility, in particular hydrogen projects, by 2025.
Market Entry Checklist
UK businesses looking at the Korean market should consider both business-related and cultural factors before setting out. These might include:
- Do we have a strong differentiator that sets us apart from our competitors in the market?
- Do we have a strong track record in other major markets?
- Are we willing to localise the product for the market and/or for local regulations?
- Are we ready to provide a Proof of Concept (PoC) at little or no cost to the customer?
- How do we provide after-sales support?
- Do we understand the local regulations and permitting requirements? Do we need to adjust our business model to adapt?
UK businesses can approach the Korean market through direct sales from the UK, by appointing a local channel partner or by setting up an office in Korea. Each has its own benefits and drawbacks and these should be given strong consideration before entering the market. With the right strategy and local support, Korea offers great opportunities for UK hydrogen and fuel cell companies looking to expand overseas.
We seek cooperation with partners with innovative and total solution technologies in the fuel cell mobility sector.
Request detailed market intelligence reports
If you would like the full report on the hydrogen economy, please indicate the sector you are interested in using the email request button below.
Last updated: