The South Korean Ministry of Trade, Industry and Energy’s recent designation of a large-scale offshore wind power complex near Sinan, Jeollanam-do, has sparked backlash, with critics questioning the timing and feasibility of the decision just weeks ahead of the presidential election. The project, estimated to require more than 20 trillion won (approximately $14 billion) in investment, comes amid mounting concerns over the nation’s already strained transmission infrastructure. In particular, experts warn that the national power grid—especially the transmission routes linking production hubs in the eastern and southwestern regions to the greater Seoul area—may not be equipped to handle the additional load. In some areas, power plants have already been forced to suspend operations due to limited transmission capacity. The financial strain on Korea Electric Power Corporation (KEPCO) has also emerged as a key concern. KEPCO will be required to purchase electricity generated by the project at higher rates and provide an estimated 200 billion won ($139 million) in annual subsidies to local governments. Critics warn that these costs could ultimately be passed on to consumers through higher electricity bills. “It’s hard to understand why the government rushed to push this through now of all times,” one industry official said.
On Apr. 22, the Ministry officially designated the 3.2-gigawatt (GW) Sinan offshore wind project as a “renewable energy clustering zone.” The capacity of the project surpasses that of two Shin Hanul nuclear reactors currently under construction, each with a capacity of 1.4 GW, and exceeds the combined capacity of all offshore wind projects that have passed competitive bidding rounds in South Korea to date, which total 2.7 GW.
The clustering zone framework allows local governments to lead the development process, selecting suitable offshore sites and engaging directly with residents and fishing communities. In return, municipalities are granted a share of electricity revenues and benefit from bundled infrastructure investments, such as grid connection systems, easing the financial burden on private developers. The system is designed to expedite renewable energy development by fostering local cooperation and addressing fragmented efforts in the private sector. A 1.4 GW offshore wind project spanning Buan and Gochang in Jeollabuk-do was designated under the same model in February.
However, critics argue that the Sinan project is an inappropriate beneficiary of these incentives, contending that it merely consolidates previously troubled private ventures under a new umbrella without resolving core issues. Some observers suggest political motivations may have influenced the timing. “Why designate a project that began in 2019 just now, right before the election?” said one source. The government has maintained that the designation followed due process, noting that the application was formally submitted by Jeollanam-do in November.
The controversy has intensified amid broader grid challenges. Several coal-fired power plants along the east coast remain idle due to limited transmission capacity to the capital region. Nationwide, construction of transmission and distribution infrastructure is frequently delayed, sometimes by years. In this context, critics say the government’s offshore wind expansion strategy is based on unrealistic expectations that do not reflect current grid limitations.
Of particular concern is the high-voltage direct current (HVDC) transmission line planned for the west coast, a project considered critical to alleviating bottlenecks in the southwestern region. Questions remain as to whether the project will advance on schedule.
Currently, nearly 80 percent of the 2.7 GW in offshore wind capacity awarded through competitive bidding since 2022 is concentrated in Jeollanam-do. Adding another large-scale project to the region could further strain transmission systems, experts caution.
According to 2024 data, the southwestern region generated 87,542 gigawatt-hours (GWh) of electricity but consumed just 55,221 GWh—leaving nearly 40 percent of its output to be transmitted to other parts of the country. Despite this imbalance, the number of transmission lines linking the region to the Seoul area has not increased. Experts warn that the Sinan project could lead to similar grid overloads to those that have forced shutdowns of east coast power plants.
“If we fail to expand transmission capacity in tandem with creating new demand hubs, like data centers, there will be no place for this electricity to go,” said Park Jong-bae, a professor at Konkuk University.
