Korean trading firms eye green energy sector for growth

The solar power plant developed by Samsung C&T’s Trading and Investment Group in Ontario, Canada. (Samsung C&T)

South Korea’s major trading companies are seeking new business opportunities in the field of green energy as they struggle to improve profitability in traditional areas.

According to multiple sources from the comprehensive trading industry on Sunday, Samsung C&T Corp., Hyundai Corp., and POSCO International Corp. are diversifying their businesses to include renewable energy, including solar power and offshore wind farms.

Samsung C&T is gearing up to advance into Germany’s solar energy market. The company completed a wind and solar farm project in Ontario, Canada, in 2018.

Leveraging the lessons learned from the experience, Samsung C&T is now generating sales in the United States and Australia through a business model, where it wins development permits for solar projects and either sells the entire project or provides development services.

Hyundai operates solar power plans in both Korea and Japan.

In Seoul, it runs seven solar power plants producing 4.9 megawatts (MW) of electricity, while in Tokyo, there are 6 plants with a total capacity of 4.3 MW.

POSCO International aims to build a 300MW offshore wind farm by 2030, with about 20 wind turbines off the coast of Sinan County, South Jeolla Province.