South Korea Carbon Capture and Storage Market Size & Outlook, 2025-2033

South Korea Carbon Capture and Storage Market Size

The South Korea carbon capture and storage market size was valued at USD 116.04 million in 2024 and is projected to reach from USD 133.33 million in 2025 to USD 405.02 million by 2033, growing at a CAGR of 14.9% during the forecast period (2025-2033).

To get more insights about this report Download Free Sample Report

South Korea Carbon Capture and Storage Growth Factors

Carbon Neutrality Policies and Industrial Decarbonization

South Korea’s ambitious 2050 carbon neutrality target is a significant driver for the carbon capture and storage market. Policies such as the K-ETS (Korea Emissions Trading Scheme) incentivize industries to adopt CCS technologies, reducing compliance costs. The Carbon Neutrality Framework Act, enacted in 2023, allocates KRW 2 trillion (USD 1.5 billion) annually to green technologies, including CCS. Additionally, initiatives like the South-East CCUS Hub, developed by Korea National Oil Corporation (KNOC), aim to store up to 1 million tons of CO₂ annually, positioning South Korea as a leader in regional CCS deployment.

Restraining Factors

Limited Storage Capacity and High Costs

South Korea’s geological limitations pose a significant challenge, with only a few viable onshore and offshore storage sites identified. According to the Global CCS Institute, South Korea may need international collaboration for CO₂ storage, increasing project complexity and costs. The high cost of retrofitting industrial facilities with CCS capabilities also restricts widespread adoption, particularly among small- and medium-sized enterprises. Addressing these challenges through technology innovation and international agreements will be critical for long-term growth.

Key Opportunities

Synergies with Hydrogen Economy and Catalytic Conversion

Catalytic conversion, growing at 15.3% CAGR, presents an untapped opportunity by enabling the transformation of captured CO₂ into value-added products such as methanol and biofuels. South Korea’s hydrogen economy, projected to reach USD 15 billion by 2030, provides an ideal platform for integrating CCS with blue and green hydrogen production. For instance, POSCO’s CCS-integrated hydrogen projects exemplify how the convergence of these technologies can achieve large-scale decarbonization. By leveraging these synergies, South Korea can create sustainable economic opportunities while reducing emissions.

Countries Insights

The market is characterized by South Korea's ambitious carbon neutrality targets for 2050, significant industrial emissions from manufacturing and petrochemical sectors, and government-led initiatives promoting CCS technologies. Key cities are spearheading the adoption of CCS with localized strategies and partnerships with global leaders.

As the administrative and economic hub, Seoul drives CCS policies and research funding. Initiatives by the Ministry of Trade, Industry, and Energy, headquartered in the city, focus on pilot projects and public-private collaborations.

•  For instance, Seoul National University has partnered with industrial players to develop cost-efficient capture technologies.

Ulsan is pivotal due to its petrochemical industry. The city hosts the Carbon Neutrality Hub, integrating CCS into refineries. A project led by Hyundai Oilbank and Shell aims to capture and store up to 400,000 tonnes of CO2 annually by 2027, positioning Ulsan as a model for industrial decarbonization.

Busan's port infrastructure supports CO2 transport and storage logistics. Collaborative efforts between Busan Port Authority and local industries focus on creating a CCS value chain, including offshore storage development in the East Sea.

Daegu, known for its energy innovation, hosts South Korea's Green Energy Expo, showcasing CCS advancements. The city is integrating carbon capture into its power plants, reducing emissions from thermal energy production.

Incheon’s proximity to industrial complexes and offshore storage sites makes it a strategic CCS location. The Korea Gas Corporation, headquartered here, invests in CCS research to enhance gas capture efficiencies.

Technology Insights

Pre-combustion capture, with a CAGR of 14.4%, is increasingly adopted in power plants and hydrogen production facilities. South Korea’s emphasis on Integrated Gasification Combined Cycle (IGCC) technologies, such as the Dangjin Green Power Project, drives growth in this segment by enabling efficient CO₂ capture during fuel processing.

Capture services, growing at 14.4% CAGR, are crucial to South Korea’s decarbonization efforts. Companies like Hyundai Oilbank are investing in advanced solvent and membrane technologies to capture CO₂ from refining and petrochemical processes, ensuring compliance with emission reduction targets.

Catalytic conversion, expanding at 15.3% CAGR, supports South Korea’s circular carbon economy. Projects like GS Caltex’s CO₂-to-methanol pilot plant highlight the potential for transforming emissions into commercially viable products, creating a sustainable revenue stream.

End-User Industry Insights

The oil and gas sector, with a CAGR of 14.3%, remains a dominant end-user of CCS technologies. Companies such as SK Innovation are integrating CCS into upstream and refining operations to achieve significant emission reductions, exemplified by the Ulsan CCS Pilot Initiative.

List of key players in South Korea Carbon Capture and Storage Market

1. Aker Solutions
2. Air Liquide
3. Baker Hughes
4. Dakota Gasification Company
5. Exxon Mobil Corporation
6. Fluor Corporation
7. General Electric

To get more findings about this report Download Market Share

Analyst’s Perspective

As per our analyst, the market is poised for rapid expansion in the coming years. This growth is primarily driven by South Korea’s net-zero commitments, substantial government funding, and industrial decarbonization initiatives. The integration of CCS with hydrogen production and catalytic conversion technologies offers transformative potential for achieving carbon neutrality. However, addressing storage capacity constraints and reducing costs through public-private partnerships will be essential. The country’s proactive approach, combined with technological advancements, positions South Korea as a leader in the global CCS market, fostering sustainable economic growth while combating climate change.