Coal-Exit and Beyond: Structural Change and a Just Transition in Korea and Germany

Germany and the Republic of Korea (hereafter Korea) have traditionally relied on fossil fuels, particularly coal, to fuel their industrialization and economic growth. Today, both countries are committed to decarbonizing their economy by 2045 and 2050 respectively. Germany initiated its transition towards renewable energy approximately two decades ahead of Korea. As of 2023, 52% of Germany’s electricity is generated from renewables, while in Korea only around 9% is produced from renewable energy sources (Our World in Data et al. 2023c; Our World in Data et al. 2023b). Nevertheless, both countries still are substantial users of fossil fuels, the majority of which are covered by imports. While Korea has only limited coal production capacities and thus relies on coal imports, Germany has historically produced a significant share of the consumed hard coal and lignite domestically. However, factors such as the unprofitability of lignite and hard coal mining in Germany have led to a sharp decline in the German energy sector over the past decades. Since 1991, direct employment has more than halved, primarily due to significant job losses in the coal industry, demonstrating the ongoing structural change in Germany. In contrast, the substantial workforce employed in the coal-fired power plant sector in Korea has not decreased to this day.