Executive Summary

Korea stands at the crossroads of a global industrial reordering shaped by clean energy imperatives and intensifying geoeconomic rivalry. Semiconductor manufacturing—Korea's most critical export sector—is under mounting pressure to decarbonize amid tightening global climate standards, rising investor scrutiny, and shifting supply chains. At the same time, Korea's energy system remains heavily dependent on fossil fuels and plagued by grid bottlenecks, threatening the competitiveness of its most advanced industries.

Fortunately, South Korea has repeatedly demonstrated an ability to transform crisis into opportunity—especially in using economic shocks to accelerate strategic pivots toward green growth. From the 2008 Green New Deal to the 2015 launch of the Korean Emissions Trading Scheme (KETS), and more recently its agile response to the U.S. Inflation Reduction Act, Korea has shown how coordinated state-industry action can align industrial renewal with environmental goals. Today, the challenge to retain semiconductor manufacturing leadership in an energy insecure environment demands a similarly bold response.

This report examines how Korea can leverage its proven crisis-to opportunity playbook to secure semiconductor leadership in an era of clean energy transition. Drawing on comparative analysis with Taiwan— where TSMC has turned aggressive decarbonization into competitive advantage through integrated energy governance—the analysis reveals how Korea's fragmented institutional structure creates systemic vulnerabilities that regional competitors are rapidly exploiting.

“A coordinated "clean chip" strategy can align energy, industrial, regulatory, and diplomatic levers toward securing Korea's place as a clean tech leader in an increasingly fragmented global economy.”