Lee Ho-hyun, Second Vice Minister of the Ministry of Climate, Energy and Environment, stressed that "the new energy order after the current Middle East war will be the arrival of the 'age of electrification.'" Just as the first and second oil shocks of the 1970s triggered a nuclear power boom and the establishment of petroleum stockpile systems, the end of the current U.S.-Iran war is expected to accelerate electrification. Electrification refers to the shift from direct fossil fuel use — such as gasoline for transportation and liquefied natural gas (LNG) for heating — to electricity. Lee's message is that Korea must preemptively respond to this trend to gain the upper hand in the energy hegemony race.
In a keynote speech at the "2026 Energy Strategy Forum" held at the Shilla Hotel in Jung-gu, Seoul on Wednesday, Lee pointed out that "China has been rapidly achieving electrification through the deployment of electric vehicles, energy storage systems (ESS), and renewable energy, based on its control of critical mineral supply chains including rare earth elements." In contrast, Lee explained, Korea remains vulnerable — not only importing 93% of its energy demand but also depending on specific countries for key materials used in batteries and semiconductors.
"The time has come for comprehensive efforts to gain the upper hand in the energy hegemony race," he said. "We must enhance the competitiveness of domestic electric vehicles, ESS, heat pumps, and power equipment industries to prepare for the age of electrification and strive to become a global top-three green manufacturing powerhouse." His argument is that Korea should intensively nurture electrification-related manufacturing sectors and leverage them as future growth engines.
Indeed, the world is already experiencing surging electricity demand as the artificial intelligence (AI) revolution converges with electrification. In Virginia, where data centers are being built at a concentrated pace, wholesale electricity prices reportedly soared up to eight times year-on-year. Even before the Middle East war began, the United States was already suffering from considerably high electricity rate increases.
The International Energy Agency (IEA) also projected that global electricity demand, which stood at 28,200 TWh (terawatt-hours) in 2025, will reach 33,600 TWh by 2030. The IEA particularly forecast that electricity demand will rise even in advanced economies, where it has tended to plateau, due to the effects of electrification.
To address these conditions, Lee believes the way power grids are operated must change. The idea is to meet a significant portion of electricity demand through an energy mix that utilizes both nuclear power and renewable energy, while introducing a flexibility strategy that manages both supply and demand. "Until now, we managed only electricity supply. Going forward, we plan to innovate market systems and pricing structures so that electricity demand can also operate flexibly," Lee explained.
