South Korea's HVDC transmission system market is also growing greatly due to the growing power needs of the nation, its goal to decarbonize, and the need for innovative solutions in maintaining grid stability. So, from offshore wind farm integration to regional grid resilience, HVDC is the backbone for South Korea's next-generation of energy infrastructure and secure long-distance transmittance
The market valued at USD 327.5 million in 2025 and grown to USD 913.4 million by 2035 with high CAGR of 10.8% over the period of 2025 2035.
HVDC technology offers an extremely effective method for transmitting large quantities of electricity over long distances with minimal loss, which is particularly advantageous in Korea, where other energy resources are far from the majority of use. As South Korea expands its offshore wind energy and inter-region transmission capacity, HVDC is assisting the updating and de-centralization of the nation's grid.
| Metric | Value |
|---|---|
| Industry Size (2025E) | USD 327.5 Million |
| Industry Value (2035F) | USD 913.4 Million |
| CAGR (2025 to 2035) | 10.8% |
HVDC expansion in Korea is driven by massive government investments, utility-technology joint ventures for cooperation, and growing focus on smart grid integration. South Korea is becoming a center of energy innovation and the credibility of transmission with land-based and subsea HVDC projects in progress.
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Since Seoul Capital Area, which consists of Seoul, Incheon, and Gyeonggi-do, is the key population and consumption hub in Korea, HVDC demand peaks in this area. HVDC stations are used for transferring the power from the renewable sources on coastal and southern regions of the nation to counteract bottlenecks in transmission along with handling the peak loads during demand peaks. Converter stations and grid management centers are being upgraded to better control energy distribution more dynamically from the metro area to suburban.
The Yeongnam region, comprising of Busan, Daegu, and Ulsan, is playing a double role in HVDC growth as a generation hub and a key transmission corridor. Offshore wind farms of Ulsan and port of energy of Busan are driving gigantic investment in HVDC export and onshore converter stations. They play an indispensable part in providing industry centers with clean, green power and relieving pressure from AC transmission lines.
In the Gwangju-Honam and Jeonju area, HVDC is employed to tap and export the power sources of renewable energy in the region. Wind farms and solar farms are on the increase, and HVDC stations are allowing excess power to be sold in energy-deficient regions like Seoul. The region is also being targeted by investment schemes to upgrade the grid by means of HVDC substations to control the voltage levels and prevent frequency disruptions in growing urban areas.
Gangwon's geographical terrain and scattered population present limitations to traditional AC grid infrastructure, thus the strategic choice of HVDC. Gangwon is pursuing the use of HVDC in order to promote renewable energy development, namely wind and hydroelectricity. Gangwon is strategically positioned to benefit from future interconnection plans that can link to North Asia power grid plans which require high-capacity transmission lines.
Chungcheong province, home to Sejong, Cheongju, and Daejeon, is being developed as a key node for Korea's HVDC grid because of its central location and because it is integrating smart city infrastructure. HVDC infrastructure in the province is being introduced to provide improved east-west and north-south power supply, primarily because the province is an energy zone crossing point. Sejong's industrial complexes and smart energy districts also pioneer HVDC-compatible grid technology.
High Capital Outlays and Long Project Timelines
HVDC transmission systems require high initial investment in converter stations, control gear, and specialty cables. Land acquisition cost, regulatory approval, and infrastructure installation in South Korea can push schedules and costs. Such high-capital projects are always open to public criticism, especially in high-density population areas where right-of-way and environmental issues become controversies.
Regulatory Uncertainty Over Grid Connection and Ownership
The Korean electricity market is still transitioning from a KEPCO-dominated, centralized to an open model. However, ambiguity over transmission ownership, access rights to the grid, and long-term tariffs makes it a complex playing field for technology providers and private investors in HVDC projects. These areas of gray in regulation can deter foreign competition and hinder innovation in grid-scale ventures.
Geographical Constraints and Limited Interregional Demand
Relative limited geography of South Korea limits HVDC system historic long-distance benefits. Compared with bigger nations with thousands of kilometer HVDC capacity to export power, the Korean benefits more usually relate to individual offshore wind farms or between-island tie-lines, but not broad country corridors. Therefore, project developers must prove economics in terms of strategic, limited uses.
Joining Offshore Wind and Renewable Energy Projects
South Korea is a core-set ambitious renewable energy target under the Renewable Energy 3020 master plan and aims to make 12 GW of offshore wind capacities in operation by 2030. HVDC technologies are key to transmitting high capacity of clean power from offshore site such as the waters off Jeju, Incheon or Sinan to land based load centers. HVDC, as itself efficient in reducing transmission loss and maintaining voltage stability, provides a lifeline to Korea’s low-carbon energy transition with submarine cables.
Cross-Border Power Interconnectivity and Regional Grid Collaboration
South Korea is eyeing regional integration of energy through mechanisms like the then-pending Northeast Asia Super Grid. HVDC technology would make inter-border electricity commerce between South Korea, China, Japan, and Mongolia possible by drawing upon excess renewable energy sources in one country to serve peak demand in another. Though it is as yet only conceptual, such deals would render Korea a strategic point for regional electric commerce in East Asia.
Modernization and Digitalization of National Grid Infrastructure
To enhance grid flexibility and support growing electrification, Korea is investing in digitalized substations, smart grid technology, and advanced transmission systems. HVDC is centrally involved in this modernization effort specifically, in supporting bidirectional power flow, improved voltage control, and enabling high-capacity inter-regional interconnections. These systems play a role in reducing grid congestion and allowing for more dynamic energy dispatching.
Domestic Technology Development and Export Prospects
South Korea's market-leading firms like LS Electric and Hyosung Heavy Industries are spearheading HVDC technology development, such as converter modules, control systems, and producing cables. Thanks to government encouragement and growing demands for secure grid infrastructure in Southeast Asia and the Middle East, Korea can export HVDC systems potentially in its overall industrial and energy foreign policy initiative.
Between 2020 and 2024, South Korea's HVDC transmission system market remained relatively niche in nature, comprising primarily remote island interconnections (e.g., Jeju HVDC link) and pilot-level integration of offshore wind power. High cost of development and transparency issues in policies prevented large-scale scaling-up of HVDC beyond state-led initiatives.
Forward to 2025 to 2035, the market will grow substantially in tandem with offshore wind development, green hydrogen infrastructure, and smart grid expansion. HVDC will emerge as a critical enabler for connecting decentralized energy assets, improving grid reliability, and enabling regional power interconnection. Innovation in the domestic economy and public-private partnerships will be at the center of developing competitive advantage and technological leadership for Asia's new HVDC marketplace.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Sourcing Strategy | Predominantly state-led procurement, with strong reliance on KEPCO-affiliated partners |
| End-Use Dominance | Focused on isolated projects like Jeju Island interconnection and pilot offshore wind links |
| Production Trends | Basic domestic capabilities in converter stations and HVDC cable systems |
| Price Trends | High upfront CAPEX; return on investment limited to a few large-scale use cases |
| Technology Integration | Limited integration with digital control platforms and real-time grid optimization |
| Environmental Focus | Environmental impact assessments primarily focused on marine cable routing |
| Supply Chain Risks | Heavy reliance on specialized foreign components and long delivery timelines |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Sourcing Strategy | Rise of public-private consortia and expanded role of domestic OEMs in regional HVDC projects |
| End-Use Dominance | Widespread deployment for offshore wind, hydrogen hubs, smart city energy networks, and cross-border trade |
| Production Trends | Advanced in-house manufacturing and export-ready technology across all HVDC components |
| Price Trends | Improved economics through localization, modular design, and standardized engineering packages |
| Technology Integration | Full integration with AI-powered grid control systems, dynamic load balancing, and predictive fault management |
| Environmental Focus | Lifecycle emissions analysis, low-carbon cable manufacturing, and integration with ESG-driven energy planning |
| Supply Chain Risks | Enhanced resilience through domestic supply chains, regional R&D clusters, and policy-backed export financing |
Busan is proving to be a strategic area in Korea's HVDC transmission system market, driven primarily by its maritime infrastructure, industrial estates, and grid modernization activities. Being a leading coastal city, Busan provides support for offshore wind farms and coastal renewable energy installations energy transmission.
Plans to enhance efficiency and reliability of long-distance transmission of power through South Korea's southern grid incorporate HVDC technology. Busan's role as an energy and logistics hub guarantees long-term investment in HVDC use.
| State | CAGR (2025 to 2035) |
|---|---|
| Busan | 11.0% |
Seoul is the leader in HVDC uptake in Korea because it is the country's capital and largest city with huge electricity consumption. HVDC systems are now being considered more for transmitting high-capacity power from distant renewable sources into the city, minimizing transmission losses, and improving grid stability.
Smart grid initiatives and infrastructure development supported by the government in and around the capital are driving the transition to HVDC infrastructure to achieve urban resilience and carbon neutrality.
| State | CAGR (2025 to 2035) |
|---|---|
| Seoul | 11.2% |
Daegu is emerging as a critical market for HVDC deployment with the city's energy transition and digital grid transformation plans. Increasing industrial electrification and clean energy distribution demands new focus areas that include HVDC as part of substation modernization and regional transmission corridors.
The city's initiatives toward building energy-efficient smart city models and regional interconnection plans are driving investment in future-proof power infrastructure like HVDC systems.
| State | CAGR (2025 to 2035) |
|---|---|
| Daegu | 10.5% |
Incheon is a pivotal place for Korea's HVDC strategy because of its strategic location near international ports, airports, and designated renewable energy areas. The area is giving high priority to HVDC connections for effective transmission of offshore wind power and enabling stable power supply to logistics-dense areas.
Incheon's status as a Free Economic Zone and its positioning in cross-border energy plans with foreign countries also drive up adoption of high-tech HVDC systems, particularly in hybrid AC/DC grid configurations.
| State | CAGR (2025 to 2035) |
|---|---|
| Incheon | 10.9% |
Gwangju's HVDC market is slowly widening to match its focus on energy innovation, carbon minimization, and smart grid integration. With the city progressing in developing low-carbon public infrastructure and industrial parks, HVDC is being investigated for regional grid upgrades and inter-regional energy exchange.
Gwangju's increased involvement in government-sponsored green energy projects guarantees sustained momentum in the rollout of effective long-distance transmission systems.
| State | CAGR (2025 to 2035) |
|---|---|
| Gwangju | 10.3% |
With South Korea becoming increasingly forward-thinking and low-carbon in power, HVDC transmission system solutions have become an essential segment in facilitating the modernization of the power grid of Korea. With the government speeding up its renewable energy target through programs such as the Renewable Energy 3020 Plan and increasing offshore wind, solar, and distributed energy capacity, demand for efficient, high-capacity transmission solutions has grown manifold.
HVDC (High Voltage Direct Current) system solutions converters, harmonic filters, DC transmission lines, and HVDC circuit breakers have become the pillar of Korea's future power delivery network. In comparison to the traditional alternating current (AC) systems, HVDC transmission has greater control of power flow, higher efficiency of power transmission over long distances, and capability to interconnect asynchronous power systems.
These characteristics have placed HVDC solutions in the limelight of Korea's long-distance and inter-regional energy transportation projects, particularly with new generation plants constructed at far distances from load centers. Offshore wind farms, island-based solar farms, and distant nuclear power plants are directly connected to consumption urban centers via high-power HVDC corridors.
The country's dominant transmission and distribution firm is the Korea Electric Power Corporation (KEPCO), which has led the development of HVDC installations. The corporation's early investments in research and installation of bipolar and monopolar HVDC systems have formed the foundation for Korea's contemporary transmission policy.
Projects such as the Haenam-Jeju HVDC link, being one of Asia's first subsea HVDC cable systems, indicate technical viability and strategic significance of HVDC technology in connecting geographically remote nodes of energy in Korea's island and mainland grid. System elements like converters and harmonic filters play important roles in facilitating error-free conversion of AC to DC and vice versa and ensuring power quality.
Korean industry and foreign technology suppliers have combined to provide these next-generation systems, with the latest control algorithms and modular multilevel converter (MMC) technologies to enable voltage and reactive power support. Including DC circuit breakers and fault current limiters has also improved HVDC line reliability, with quick fault detection and isolation, primary concerns in an increasingly digitally networked grid. Furthermore, HVDC transmission system solutions have been instrumental in integrating renewable energy into Korea's central grid without impacting voltage or frequency parameters.
Since wind and solar power are very variable at short time scales, HVDC converters with the embedded control logic provide grid operators an opportunity to regulate sudden power injections and re-direct it optimally to meet demand. The capacity of these units to offer synthetic inertia and frequency response is also a further extension of their value in a post-fossil fuel power system. Policymakers' attitude in South Korea has seen the national energy transition plan of South Korea include developing HVDC systems as one of the pillars of the enablers of green growth.
Planners have ordered government proposals for further cross-country transmission backbones and connections to neighboring power markets, all dependent on HVDC corridors built with high-performing and resilient system components.
The proposals fit within Korea's larger digital and green new deal master plans that bring together replacement of infrastructure along with carbon emission reductions and digital upgrading. Local research organizations like KERI (Korea Electrotechnology Research Institute) and university collaborators are working with industry giants in order to improve the performance of HVDC components.
Advances in cable insulation, switching devices, and loss-reducing coatings have put Korean engineering groups at the pinnacle regarding HVDC component design. Local players such as LS Electric, Hyosung Heavy Industries, and KEPCO Engineering & Construction are increasing production capacities and signing global export orders for HVDC solutions, increasing Korea's position in the global transmission market.
In the future, the HVDC transmission system solution market in Korea will see increasing investments with a primary focus on hybrid AC-DC grid structures, smart converter terminals, and grid-forming HVDC terminals. All these breakthroughs will go a long way in enabling Korea's high-renewables future, enabling inter-national energy transfer, and ensuring that the power system remains versatile, secure, and digitally adept.
In Korea's HVDC transmission industry, Voltage Source Converter (VSC) technology has proved to be a game-changer, transforming power transmission, management, and integration into Korea's high-performance grid. With the transformation of South Korea to create space in its energy system for high proportions of renewable power, distributed generation, and varying loads in urban environments, the use of VSC-based HVDC systems has been booming.
In contrast to Line Commutated Converter (LCC) systems, which rely on the quality of the AC grid it is connected to, VSC systems offer independent control of active and reactive power, black start capability, and lower harmonic distortion advantages that have made them most appealing to Korea's grid modernization programs. South Korea's affinity for VSC technology is also most tied to South Korea's energy geography, as well as urban infrastructure requirements.
With the populations and industrial loads so highly concentrated in the Seoul Capital Area and Gyeonggi Province, grid operators need transmission technologies able to handle high levels of intermittent renewable power from the south and coastal regions. VSC systems, through their capacity to separately control voltage and power flow at each terminal, allow for smoother integration of these generation regions with consumption hubs without sacrificing grid stability. VSC's modular multilevel converter (MMC) structure is more fault-tolerant and expandable, allowing Korea's utilities to build HVDC links that are compact and reliable.
Modular building is particularly worthwhile in space-restricted settings such as underground substations, city nodes, and offshore converter platforms. As Korea ramps up its offshore wind development targets aiming for more than 12 GW of capacity by 2030 VSC-based HVDC systems have emerged as the transmission solution of choice for harvesting wind energy and delivering it to onshore substations via submarine cables.
Further, the capacity of VSC systems to offer black start capability restoring power independent of outside grid assistance is one that has made them a key component of Korea's disaster recovery and energy security plan. In a nation exposed to natural interruptions such as typhoons and earthquakes, having sections of the grid able to restart autonomously is an important consideration, and one for which VSC HVDC stations have no equivalent.
High-profile recent Korean missions exhibit progressively widespread VSC applications. Latest Jeju-Haenam HVDC scheme and Saemangeum wind and solar farm complex employed VSC technology to ensure efficient long-distance secure supply of power. These projects not only confirmed technological feasibility of VSC for the Korean environment but also act as blueprints for their application on the peninsula in the future.
Regulatory speaking, Korea's energy government administration has increasingly made VSC adoption the solution to achieving decarburization targets and achieving grid reliability needs. Regulations have provided directionally in recommending that VSC components be integrated into national proposals and grid-planning announcements and that R&D focus on solid-state converters, wide-bandgap semiconductors, and high-voltage insulation take priority funding from MOTIE as core building blocks towards VSC infrastructure future-proofing.
Korean academic and industrial interests are also financing VSC development with collaborative effort investments. Institutions such as KAIST and POSTECH, among others, are collaborating with grid operators and industry manufacturers in the simulation of dynamic VSC behavior under adaptive grid conditions.
VSC-based microgrid pilot projects, AC-DC hybrid test beds, and offshore energy island projects are all being implemented in order to establish a local body of knowledge on the use of VSCs. In the years to come, the HVDC transmission policy of Korea will likely be centered on hybrid topologies that exploit the virtues of both the VSC and LCC systems.
The trend strongly points towards the increasing VSC penetration, especially for new initiatives in areas with high renewable abundance and city load centers. With the energy transition gaining momentum, VSC technology will continue to be a building block of Korea's goal to create an efficient, sustainable, and digitally intelligent power system that will make a net-zero economy possible.
South Korea's market for HVDC transmission system is embarking on its tipping-point period of growth as fueled by the country's targets to undergo an energy transformation, enhance offshore wind installations, and refurbish aged high-distance and inter-region transmission powers.
The technology presents enhanced efficiency and reliability in contrast with regular AC power cables, especially with applications underwater or to huge-capacity connections. It is dominated by the world's tech majors with bases in Korea for manufacturing and R&D, complemented by indigenous conglomerates in investing heavily to create grid innovations.
Strategic policies such as becoming carbon neutral by 2050 and interlinking with zones of renewable power are driving rollout of HVDC projects and a battle among system integrators.
Market Share Analysis by Company
| Company Name | Estimated Market Share (%) |
|---|---|
| LS Electric Co., Ltd. | 20-25% |
| Hyundai Electric & Energy Systems | 16-20% |
| Hitachi Energy Korea | 12-16% |
| Siemens Energy Korea | 8-12% |
| Other Players | 30-35% |
| Company Name | Key Offerings/Activities |
|---|---|
| LS Electric Co., Ltd. | South Korea’s leading HVDC system integrator. Supplies VSC-HVDC converter stations, high-voltage cables, and grid integration for offshore wind and island interconnections. Working with KEPCO on Jeju Island HVDC link. |
| Hyundai Electric | Provides complete HVDC transmission solutions including converters, transformers, and control systems. Active in renewable energy corridors and long-distance transmission projects under Korea’s Green New Deal. |
| Hitachi Energy Korea | Specializes in modular HVDC Light® and HVDC Classic® systems for cross-sea and high-capacity projects. Key supplier to Korean utilities for high-efficiency energy transfers. |
| Siemens Energy Korea | Offers HVDC PLUS technology and advanced converter stations. Collaborates with Korean EPC firms on hybrid transmission systems for upcoming offshore energy hubs. |
The overall market size for the HVDC Transmission System Market in South Korea was USD 327.5 Million in 2025.
The Korea HVDC Transmission System Market is projected to reach USD 913.4 Million by 2035.
The growing integration of renewable energy sources, need for long-distance and efficient power transmission, and government investments in grid modernization will be key factors driving the adoption of HVDC systems in Korea.
The top 5 states contributing to growth in Korea’s HVDC Transmission System Market are Busan, Seoul, Daegu, Incheon and Gwangju.
Voltage Source Converter (VSC) technology and HVDC systems solutions are expected to lead the Korean market, thanks to their superior efficiency, compact footprint, and suitability for integrating variable renewable energy sources into the national grid.
On the basis of system component, the Korea HVDC Transmission System Industry is categorized into HVDC Transmission System Solution and HVDC Transmission System Services (AC & DC Harmonic Filters, Converters, DC Lines, Circuit Breakers, and Others)
On the basis of technology, the Korea HVDC Transmission System Industry is categorized into LCC, VSC, and Others.
On the basis of deployment, the Korea HVDC Transmission System Industry is categorized into Overhead, Underground, Subsea, and Combination.
On the basis of power rating, the Korea HVDC Transmission System Industry is categorized into Below 1000 MW, 1000 to 2000 MW, and 2000 MW & above.
On the basis of cities/provinces, the Korea HVDC Transmission System Industry is categorized into Busan, Seoul, Daegu, Incheon and Gwangju.
Korea HVDC Transmission System Market
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