SOUTH KOREA Law and Practice Contributed by: Michael Chang, Sang-Hyun Lee, Su-Yong Jung and Jae-Wook Ryu, Shin & Kim
The Electricity Regulatory Commission The ERC (which officially transferred to the MCEE in late 2025) has the authority to deliberate on the fol - lowing matters: • an EBL; • approval of sale and acquisition of electricity busi- ness; • approval of charges for use of transmission and distribution facilities; • approval of electric sales entity’s terms and condi- tions; • maximum electricity trading price; • approval of the Rules on the Operation of the Elec- tricity Market; • annual plan and results of the management of the credibility of the electric power system and estab- lishment, amendment and repeal of related regula- tions; and • reorganisation of the electricity industry, such as introduction of competitive systems. The Korea Power Exchange The KPX was established as a separate entity under the Electric Utility Act to manage the electricity market and electric power system. It is engaged in estab- lishing and operating the electricity market, electric- ity trading, calculating the volume of electric power traded and operating the electric power system. 1.6 Recent Changes in Law or Regulation Energy Trifecta Act and 2026 Implementation On 25 March 2025, the so-called Energy Trifecta Act was promulgated. As of 2026, the legislation has moved from a legislative milestone to an implemen- tation issue for power projects, particularly in relation to national grid expansion, offshore wind development
• the Special Act on High-Level Radioactive Waste Management (the “High-Level Waste Management Act”). Under the Electricity Network Expansion Act, the South Korean government plans to lead the develop- ment of a national core power grid, prioritise elec- tricity use at production sites, and shorten the local consultation period to 60 days. Under the Special Offshore Wind Power Act, offshore wind projects will be expedited through a one-stop permitting system, with measures to enhance local acceptance through reasonable compensation and benefit-sharing. The Special Offshore Wind Power Act also includes grand- fathering provisions for existing developers, with fur- ther guidance to be issued by the relevant ministries. Under the High-Level Waste Management Act, a new framework will be introduced for the off-site storage and disposal of spent nuclear fuel, although meas- ures to ensure community acceptance have yet to be disclosed. Renewable Energy Act Amendment On 12 February 2026, an amendment to the Act on the Promotion of the Development, Use and Diffusion of New and Renewable Energy passed the plenary ses- sion of the National Assembly. The amendment sepa- rates “new energy” sources such as hydrogen and fuel cells from the renewable energy framework and transfers provisions relating to such sources to the Hydrogen Economy Promotion and Hydrogen Safety Management Act. It also prohibits, in principle, indis- criminate setback distances imposed by local govern- ments for solar power projects when granting devel- opment permits, subject to exceptions including the preservation of historical and cultural areas and other exceptions to be prescribed by Presidential Decree. Enactment of the Agrivoltaic Power Generation Promotion Act On 7 May 2026, the Bill for the Act on the Promotion and Support of Agrivoltaic Power Generation Projects passed the Plenary Session of the National Assembly. This special Act establishes an independent approval system separate from a standard power generation business licence under the Electric Utility Act. Under the Act, when an agrivoltaic project combining farm- ing and solar is approved, a ‘temporary permission for
and spent nuclear fuel management. The Energy Trifecta Act consists of:
• the Special Act on the Expansion of the National Electricity Network (the “Electricity Network Expan- sion Act”); • the Special Act on Promotion of Offshore Wind Power Distribution and Industry Development (the “Special Offshore Wind Power Act”); and
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