Energy is no longer a simple public good. It is a strategic asset that determines a nation's industrial competitiveness. Energy underpins every advanced industry — semiconductors, AI, secondary batteries. Without a secure energy supply, the industries of the future cannot survive.
Over the past half-century, South Korea's energy technology faithfully served the mission of stable supply, forming the bedrock of the country's industrialization. But the times have changed. Energy is now being redefined — not merely as a supply challenge, but as a matter of national security.
The international order is already being rapidly redrawn. The United States moved to localize its energy supply chain with the One Big Beautiful Bill Act in July 2025. The EU, in February of that year, tied decarbonization, industrial competitiveness and energy security together under its Affordable Energy Action Plan. Japan also launched a long-term integrated strategy combining industrial siting, power and decarbonization through its GX 2040 Vision and seventh basic energy plan. Every major power has elevated energy technology to the core of its industrial sovereignty.
The most urgent challenge is AI data centers. Global technology giants choose locations on the premise of securing gigawatt-scale power. The energy and water demands of a single facility can rival those of a mid-sized city. Energy constraints are already delaying data center construction and slowing AI investment. At a moment when energy should be driving industry forward, the risk that it becomes a drag instead is a real concern.
The direction of a solution is clear: securing affordable, high-density, clean energy technology through domestic capabilities. Cheap electricity is not simply a matter of natural endowments — it is a question of technological capacity. The industrialization of renewable energy spanning next-generation wind, solar and energy storage systems; the safe continued operation of nuclear power plants and the timely commercialization of small modular reactors; low-carbon thermal power based on carbon capture, utilization and storage; grid modernization encompassing transmission and distribution networks and high-voltage direct current systems; and data center-specific technologies including DC power distribution, liquid cooling and waste heat recovery. These are not mere means of power generation — they will become the fundamental core of national industrial competitiveness.
With that in mind, I offer three proposals to the government and industry. First, declare a "new power system" — one that integrates generation, transmission and demand into a single flow — as a national mission. China is concentrating roughly 800 trillion won (approximately $518 billion) in grid investment under its 15th five-year plan, while South Korea still treats generation, transmission and demand as separate silos. The reality that sunlight from the Honam region and wind from the southwestern sea cannot reach the advanced industries of Greater Seoul must be resolved. Second, launch an "Energy-AI-Core Industry Alliance R&D" initiative. Power-package advanced industrial clusters — where companies receive integrated support for siting, electricity and heat — should be strategically distributed across the country. Third, establish a "10-year accountability-based energy strategic technology project." A mission-driven, long-term funding and dedicated management structure that survives changes in government is essential.
South Korea's next 30 years will ultimately depend on how cheaply, continuously and reliably energy can be delivered to industrial sites when needed. Simply adding more generation capacity will not solve the problem. As long as transmission grids are blocked, project sites are stranded and responsibilities are scattered across ministries, even the most advanced technologies will stall. Energy technology self-reliance and self-strengthening means redesigning the national territory, redrawing the map of industry and rebuilding the structure of national decision-making. The country's future rests on exactly this.
Noh Cheol-woo is head of the research and project planning coordination office at the Korea Institute of Energy Research.
nbgkoo@heraldcorp.com
