[비즈한국] As the Lee Jae-myung administration pushes full-scale construction of 'RE100 industrial complexes', the renewable energy industry is once again in the spotlight. Kim Yong-beom, Policy Chief at the Presidential Office, stated at a related briefing held at the Presidential Office in Yongsan, Seoul, on the 10th, "We will actively consider enacting a 'Special Act on RE100 and Energy Creation and Support' during this regular session of the National Assembly," adding, "This is because it aligns with the President's core state policy philosophy of energy transition and balanced regional development." Accordingly, RE100 industrial complexes are being prioritized as a key policy task.
RE100 is an abbreviation for 'Renewable Energy 100', a global campaign led by the international non-profit The Climate Group. Its core premise is that companies will transition 100% of the electricity they consume to renewable energy by 2050. Global companies such as Apple, Google, and Microsoft have already joined and are requiring their supply chain partners to meet these standards as well. While major domestic companies like Samsung Electronics005930, SK Hynix000660, and LG Energy Solution373220 are also participating, the reality is not easy. RE100 is no longer an environmental issue; it is becoming a practical matter of staying in the global supply chain.
In a recent open letter to President Lee Jae-myung, The Climate Group warned that South Korea is at risk of being excluded from global supply chains due to its low renewable energy procurement rate. They pointed out that while 36 Korean companies signed up for RE100 consume 68 TWh of electricity annually, the average renewable energy procurement rate is only 12%. Specifically, they highlighted that the renewable energy transition rates for Samsung Electronics and SK Hynix are only 16.3% and less than 3%, respectively. This is 10 years behind Taiwan's TSMC, which has set a target for 2040, and is significantly lower than the 53% average procurement rate of global RE100 companies. For companies, RE100 is no longer a choice but a cost of survival.
Another reason why RE100 is urgent is that global carbon regulations will become a reality within five years. Starting next year, the European Union (EU) will fully implement the Carbon Border Adjustment Mechanism (CBAM), and the 2030 Nationally Determined Contributions (NDC) are also approaching. Failure to reduce carbon emissions could lead to tax bombs and exclusion from supply chains. This is an even greater threat to South Korea, which has many export-oriented companies.
Han Byung-hwa, a researcher at Eugene Investment & Securities, said, "Unless we revitalize large-scale renewable energy procurement and direct investment by RE100 companies, our companies' export competitiveness will decline," adding, "The Lee Jae-myung administration's policy of shifting energy policy toward renewable energy is justified."
Amid these changes, what investment strategy should be adopted? There are broadly three: investing in beneficiary industries and companies such as solar and wind, and in companies that are implementing RE100.
Researcher Han predicted, "We must expand domestic renewable energy installation from the current 3 GW level to 10 GW within five years to avoid carbon barrier risks," and added, "Wind and solar companies with high domestic revenue shares, as well as power grid and equipment manufacturers, will have their growth engines ignited by securing a stable domestic market."
Eugene Investment & Securities suggested domestic energy-related stocks, including Hanwha Ocean042660, CS Wind112610, SK Oceanplant, LS Marine Solution, Unison, Dongkuk S&C (Wind Power), Hanwha Solutions, HD Hyundai Energy Solutions, Shinsung E&G (Solar Power), and HD Hyundai Electric, LS ELECTRIC, Hyosung Heavy Industries, Taihan Cable & Solution, and Iljin Electric (Power Infrastructure). Furthermore, for those who find it difficult to pick individual stocks, there is the method of investing in renewable energy-related ETFs such as 'KODEX Renewable Energy Active' and 'TIGER Fn Renewable Energy'.
Of course, there are concerns that investing in renewable energy infrastructure takes time and profitability may suffer without government support. Also, the prospect that recent signing of the 'One Big Beautiful Bill Act' (OBBB), a massive tax cut bill, by US President Donald Trump could negatively impact renewable energy demand is a factor that increases volatility. Accordingly, investment related to renewable energy should be approached from a long-term perspective, and excessive expectations for short-term surges should be avoided.
Climate change is no longer just about polar bears. Global companies driven by profit are already recognizing RE100 as a future competitive edge and are moving accordingly. If we found opportunities in the 'Internet' 20 years ago, 'Carbon' could be the opportunity for the next 20 years.