1. Legal and Strategic Basis of Korea's Hydrogen Policy
South Korea's hydrogen policy has established a systematic legal and strategic framework through the enactment of the world's first Hydrogen Act and the establishment of long-term national implementation plans. This solid institutional foundation serves as a key cornerstone for securing policy consistency and predictability, reflecting the government's strong will to make the hydrogen economy a core means of national energy transition and a source of future industrial competitiveness. In particular, the clear legal basis and step-by-step implementation roadmap act as a basis of trust that attracts large-scale investment from the private sector and supports the sustainable growth of the industrial ecosystem.
Enacted in 2020, the Hydrogen Act is the world's first specialized law laying the legal foundation for South Korea's hydrogen economy. It is a comprehensive legal mechanism that pursues both the systematic fostering of the hydrogen economy and safety assurance. It was further reinforced through a 2022 amendment that added legal grounds for the definition of clean hydrogen, the clean hydrogen certification system, and the Clean Hydrogen Portfolio Standard (CHPS).
Announced in November 2021, the 1st Basic Plan for Implementation of the Hydrogen Economy is the core roadmap of the current national hydrogen policy. This plan presents 15 tasks under 4 strategies with the goal of establishing a clean hydrogen-centered full-cycle ecosystem, containing specific execution paths for South Korea to leap forward as a 'First Mover in the Clean Hydrogen Economy'.
Key Goals:
4 Major Implementation Strategies:
The '3 UP Growth Strategy', announced at the 5th Hydrogen Economy Committee meeting in 2022, is an execution strategy that concretizes the 1st Basic Plan and intensively demonstrates the current government's hydrogen policy stance.
2. Key Market Operation Systems for the Clean Hydrogen Economy
The government is shifting its policy paradigm to build a sustainable ecosystem beyond the initial market formation of the hydrogen economy. Moving a step further from direct financial support or supply targets of the past, it has designed market mechanisms to induce the autonomous expansion of clean hydrogen production and consumption based on market principles. This holds strategic importance in securing the economic viability of clean hydrogen, resolving uncertainties in private investment, and laying the foundation for market growth without government intervention in the long term.
The Clean Hydrogen Certification System is a core institutional framework that objectively proves the 'cleanliness' of hydrogen based on greenhouse gas emissions generated during the production process. A pilot project began in March 2024, aiming for full implementation by 2027.
Certification Standards and Grading System:
Evaluation Scope and Operation:
To secure a stable demand source for certified clean hydrogen and promote decarbonization in the power generation sector, the world's first Clean Hydrogen Portfolio Standard (CHPS) bidding market was opened in May 2024.
Market Structure and Operation:
2024 First Bidding Results and Challenges:
2025 Bidding and System Improvements:
3. Hydrogen Economy Implementation Policies by Sector
The success of hydrogen economy policies is not limited to achievements in specific fields. Synergy can only be created when the entire value chain—from clean hydrogen production to transportation, power generation, and industry—is organically connected. The government is concretizing its strategy by promoting customized policies across key economic sectors, including production & supply, mobility, and power generation, so that each sector grows in a mutually complementary manner and drives the spread of the overall hydrogen economy.
To ensure a stable hydrogen supply, the government is strengthening domestic clean hydrogen production capabilities while simultaneously building a global supply chain for economically viable overseas hydrogen imports. The specific goals for 2030 and 2050 are as follows:
Hydrogen mobility policy is strategically shifting from passenger cars in the early stages to commercial vehicles such as buses and trucks, which have significant effects on creating large-scale hydrogen demand and reducing greenhouse gases.
The power generation sector aims to convert existing fossil fuel power generation facilities to eco-friendly energy sources using hydrogen and ammonia. The roadmap for phased technology demonstration and commercialization is as follows:
4. Infrastructure Establishment and Safety Management Policy
The systematic construction of large-scale hydrogen infrastructure acts like the 'blood vessels' connecting the production, distribution, and utilization of clean hydrogen. This is a prerequisite for solidifying the physical foundation of the hydrogen economy while realizing economies of scale. Furthermore, the hydrogen economy cannot take root without public trust. Therefore, learning from past accidents to establish a preemptive and systematic safety management system, thereby proving technological safety and securing social acceptance, is a strategic task as important as infrastructure construction itself.
The government is promoting policies for specialized complexes and hydrogen cities to maximize the clustering effect of the hydrogen industry and spread models utilizing hydrogen as an urban energy source.
To respond to nationwide hydrogen demand, the construction of hub-type production bases and pipeline networks is proceeding in parallel. Hub-type hydrogen production bases have been built in places like Gwangju (1,400 tons/yr) and Changwon (3,650 tons/yr), and SK E&S has completed the world's largest (30,000 tons/yr) liquid hydrogen plant in Incheon. However, the 'Valley of Death' phenomenon—an imbalance between ambitious supply infrastructure and an immature demand market—is becoming a reality, evidenced by delays in the commercial operation of HyChangwon, Korea's first commercial liquid hydrogen plant due to initial lack of demand. Meanwhile, construction of a 16km hydrogen pipeline in Pyeongtaek, connecting the metropolitan area and the Chungcheong region, is scheduled to start in October 2025 and be completed by January 2028.
Following incidents such as the Gangneung hydrogen tank explosion in 2019 and the Chungju hydrogen bus explosion in 2024, the government established the 'Hydrogen Safety Management Roadmap 2.0' to build a global-level safety management system. The Korea Gas Safety Corporation (KGS) under the Ministry of Trade, Industry and Energy serves as the dedicated agency, promoting policies centered on the following three strategies:
5. Technology Innovation and Global Cooperation Strategy
The long-term success and market preemption of the hydrogen economy depend on the internalization of core technologies and the securing of a stable overseas supply chain. Developing domestic technology is essential to break free from technological dependence and secure price competitiveness. At the same time, as domestic production alone has clear limitations, establishing international partnerships to stably procure economically viable clean hydrogen is urgent. The government is creating synergy through a two-track strategy: increasing technological self-sufficiency through national R&D support and diversifying supply chains through strategic international cooperation.
The government is concentrating R&D support on key technology areas that will lead the future hydrogen market through initiatives such as the '5th Energy Technology Development Plan'.
The government is building a stable clean hydrogen supply chain by strengthening bilateral cooperation with major resource-holding countries and technology leaders.
Key policy agencies responsible for system design, legislation, national strategy establishment, and inter-ministerial coordination.
Specialized agencies responsible for research, verification, and safety management of clean hydrogen production, storage, and transportation technologies.
Executing agencies responsible for industry promotion, technology commercialization, clean hydrogen market operation, corporate support, and global cooperation.
Regional executing agencies promoting region-based hydrogen economy ecosystem creation and infrastructure projects.
Legal basis for hydrogen policy including the Hydrogen Economy Promotion Act, its Enforcement Decree, and Enforcement Rules.
Official documents regarding the legal basis, operational guidelines, and certification procedures for the Clean Hydrogen Certification System.
Notices and official guidance materials regarding the operation of the Clean Hydrogen Portfolio Standard (CHPS) bidding market.
Designation contests, development plans, and related government press releases for Hydrogen Specialized Complexes.
Official implementation plans and policy data for the Hydrogen City 2.0 strategy.
Major meeting materials and pan-government press releases from the Hydrogen Economy Committee.