韩国今冬拟增煤电核电以压减LNG需求，Kepco成本承压但官方称不会转亏

South Korea plans to depend more on coal this winter as supplies of liquefied natural gas are disrupted by the war in the Middle East, underscoring how energy-security concerns are complicating the country’s retreat from fossil fuels.

The government needs to reduce gas consumption this winter, when demand for heating fuel peaks, and make greater use of coal and nuclear power, Climate, Energy and Environment Minister Kim Sungwhan said in an interview on Thursday.

The policy shift highlights a stark dilemma for one of the world’s top fossil fuel importers: balancing long-term climate ambitions with the immediate economic realities of volatile energy markets and a heavily indebted national power company.

“In the short term, we are in a situation where we must somehow reduce LNG demand,” Kim said. “Inevitably, we have to reduce gas usage by rapidly expanding renewables while more actively utilizing nuclear and coal power.”

While the Middle East conflict has made diversifying overseas energy suppliers a national security issue, Kim said the ultimate goal is to reduce dependence on imported fossil fuels.

South Korea took 11% of the world’s LNG shipments last year, according to the International Gas Union, behind only China and Japan. The US-Iran war has severely affected the flow of cargoes from the Persian Gulf, leaving the country heavily exposed to soaring prices.

Kim said relying more on coal and nuclear doesn’t alter the government’s long-term direction, which is to reduce both coal and LNG consumption as it shifts to renewables. Green hydrogen and carbon capture may also be used to curb emissions from gas-fired power generation, he said.

Winter gas consumption has “a considerable impact on electricity prices,” Kim said. That could put additional pressure on Korea Electric Power Corp., which pays market rates for fuel but sells power to consumers under government-regulated tariffs.

The state-run utility is still repairing its balance sheet following the energy crisis sparked by the Russia-Ukraine war, when global LNG prices surged. Kim said the shock added about 30 trillion won ($22 billion) to Kepco’s accumulated losses.

Kepco posted a consolidated surplus of about 13.5 trillion won in 2025 and isn’t expected to swing to a deficit this year, Kim said. But winter gas costs will still weigh on the utility’s earnings and the government needs to minimize the impact of that, he said.