South Korea Boosts Coal Power Reliance Amid Middle East LNG Supply Crisis

Key Facts

South Korea has increased its coal-fired power generation to prepare for the winter season following an LNG supply crisis in the Middle East. Reuters reported that coal-fired power supply in the country surged by 40% in April, marking the largest jump since August 2019, as Qatari LNG deliveries faced disruptions.

Soaring spot LNG prices have rendered gas-fired power plants uneconomical compared to coal-fired alternatives. Climate, Energy and Environment Minister Kim Sungwhan told Bloomberg that the government must inevitably reduce gas usage by more actively utilizing coal and nuclear power to secure energy supplies.

This shift occurs as regional trade data from October 14, 2026, showed a 31% increase in Chinese imports, highlighting the broader context of robust energy demand across major Asian economies despite global market volatility.