Climate Policy Engagement Analysis
Climate Policy Engagement Overview: The Federation of Korean Industries (FKI) appears to have high and negative engagement with climate policy. FKI appears to be negatively engaged in carbon taxes, the Korea Emissions Trading Scheme (K-ETS) and South Korea’s 2030 emissions reduction target. Though FKI supported renewable energy legislation in South Korea, the association appears to have negative engagement on energy transition.
Top-line Messaging on Climate Policy: InfluenceMap has not found any evidence of clear top-line messaging on climate policy by FKI in 2023 and 2025.
Engagement with Climate-related Regulations: FKI appears to have taken broadly negative positions on climate-related regulations. In an October 2024 FKI Insight, FKI appeared to advocate for partial exemptions from carbon taxes under the U.S. Clean Completion Act, as South Korea increased the share of paid allowances in its Emissions Trading Scheme (ETS). In its FKI Insight published in January 2025, FKI appeared unsupportive of a Carbon Border Adjustment Mechanism (CBAM), stating that companies should “resist regulation to gain time for transition, attract resources such as government support”. According to the 110 Legislative Tasks Desired by the Business Community for the 22nd National Assembly, submitted to both Major Parties in May 2024, FKI opposed indirect emissions regulation in K-ETS, stating it creates a “double burden” that undermines industrial competitiveness. In a July 2024 FKI Insight, FKI advocated against increasing emission allowance prices, emphasizing that ensuring economic feasibility for businesses is essential. In an October 2023 FKI Insight, FKI advocated for weaker GHG emissions targets for South Korea’s 2030 Nationally Determined Contribution (NDC), stating that the focus should shift “from greenhouse gas mitigation to climate change adaption.” In a February 2025 press release, FKI advocated for weaker GHG emissions targets for South Korea’s 2035 NDC, emphasizing the “need to set reduction targets that account for the structural limitations and unique characteristics of domestic industries.” FKI further stated that strengthening climate policies are “significantly increasing the burden on corporate management.” FKI appears to have positive engagement with renewable energy policies in South Korea. According to the FKI Insight, published in September 2024, and the 110 Legislative Tasks Desired by the Business Community for the 22nd National Assembly, FKI supported the enactment of the Special Act on Offshore Wind Power to expand renewable energy in South Korea.
Positioning on Energy Transition: FKI appears to have broadly negative engagement with the transition of the energy mix. According to the 110 Legislative Tasks Desired by the Business Community for the 22nd National Assembly, FKI advocated for an exemption of individual consumption tax on natural gas for hydrogen production, emphasizing that “relying solely on clean hydrogen production is insufficient” and that expanding natural gas-based hydrogen production is necessary as an intermediate step. In an October 2023 FKI Insight, FKI advocated for adjusting the pace of coal phase-out to ensure a stable energy supply, contingent on the deployment of carbon capture and storage (CCS). However, FKI did not clearly support reducing coal use in line with IPCC guidelines. In the same report, FKI also supported the long-term role of nuclear energy in the energy mix but did not clarify its position on a full transition to a zero-emissions energy system. This summary was last updated in Q1 2025.