South Korea


Market

Member Country Report, 10 September 2024

South Korea’s Heat Pump Technology: Energy Challenges and Opportunities

South Korea is actively advancing heat pump technology as part of its 2050 carbon neutrality plan. While industrial deployment is progressing, with significant projects like the 3.5 MWth heat pump for the papermaking process, the residential market remains sluggish. Over 92% of Korean households rely on natural gas, which is cheap and highly accessible.

The country’s isolated electricity grid presents additional challenges for heat pump adoption, particularly during peak demand periods in summer and winter. A study estimates that the widespread use of residential heat pump water heaters could increase electricity demand in Seoul by 30%, further straining the grid.

Despite these challenges, South Korea’s efforts to integrate heat pumps into both residential and industrial sectors are seen as essential for reducing greenhouse gas emissions and achieving its long-term climate goals. Click here to get access to the presentation:

 

Member Country Report, Market Overview, South Korea – June 16, 2022

The Member Country Report of South Korea highlighted the numerous obstacles that still need to be solved, given that 92.8% of the energy used in Korea is imported, with the remaining 7.2% coming from nuclear and renewable sources. Due to its high energy-saving potential, the global heat pump market in South Korea has grown rapidly in recent years. According to the member country report, South Korea strives on efforts to spread the utilization of heat pump systems but still lags in market development. The heat pump market size is estimated to be worth 2 – 3 billion USD, including residential and commercial air-conditioning/heat pumps. In 2020, compared to the 1.5 million cooling-only units, only 0.18 million heat pumps were sold for other applications, amounting to a 12% market share; in the same year, heat pumps also accounted for 15% of the domestic sales.

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Heat Pumps in Smart Grids: Market overview – Country report for South Korea (2017).  Download the “Market overview – Country report for South Korea” here.