Professor Kim Jin-soo from Hanyang University made these remarks at the 11th LNG Forum held at the Oakwood Premier Coex Center in Seoul on June 19. He stated, "While South Korea has managed stockpiling relatively well, our security capabilities in other areas, such as resource development, have declined. We must not revert to past practices just because the war is over; we need to build a system to prepare for the next crisis."
Currently, South Korea has a very low energy self-sufficiency rate. According to data provided by Professor Kim, as of 2024, the country's dependence on energy imports reached 93.9%. In contrast, domestic energy resource development remains around 10%, a stark difference compared to Japan's resource development rate of 42.1%.
Professor Kim emphasized the need to reassess the strategic value of LNG. He noted, "Even as the trend toward decarbonization continues, natural gas will play a crucial role as a strategic asset for energy security for a considerable time. It is a realistic energy source that can support stable power supply even in crisis situations."
The panel discussion that followed Professor Kim's presentation continued to explore strategies and policies for utilizing LNG from a resource security perspective.
Professor Kim Yun-kyung from Ewha Womans University highlighted the differences in LNG strategies between South Korea and Japan, stressing the need for long-term energy security policies. He pointed out that while Japan has expanded its influence across the entire supply chain through overseas resource development, LNG value chain investments, and enhanced trading functions, South Korea remains relatively focused on import and consumption.
He stated, "Energy security is not just about how much we import; it is about how much influence we have in the supply chain. A strategic approach to overseas resources and LNG projects, similar to Japan's, is necessary."
Park Jae-hong, Secretary-General of the Private LNG Industry Association, argued for the establishment of an LNG security model tailored to South Korea's market characteristics. He suggested, "The focus of energy security is shifting from mere stockpiling to ensuring supply chain flexibility and securing usable volumes. We need to consider institutional improvements that allow flexible use of LNG holdings among direct importers during resource security crises, and a Korean-style LNG security strategy is urgently needed to enhance national LNG supply chain resilience."
Moderating the discussion, Professor Cho Hong-jong from Dankook University presented 'diversification' as the key concept for energy security. He cautioned against assuming that renewable energy will solve all issues, stating, "The starting point for energy security is to secure diverse energy sources and diversify supply chains."
Professor Cho also emphasized the need to view energy not merely as a cost but as a foundational industry for national competitiveness. He remarked, "Energy is what supports advanced industries like semiconductors in maintaining global competitiveness. With the recent surge in power demand due to the expansion of AI data centers, LNG will continue to be an important energy source and a revenue-generating industry."
The LNG Forum, hosted by the Private LNG Industry Association, is recognized as a key platform for discussing policies related to South Korea's LNG industry. The association plans to hold two additional LNG forums in the second half of the year to discuss policy directions for stable energy supply.
* This article has been translated by AI.
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