Hanwha Ocean has secured a major offshore wind engineering, procurement and construction (EPC) contract in South Korea, as the government steps up efforts to boost wind power and rebalance an energy mix traditionally dominated by fossil fuels and nuclear power.
The South Korean shipbuilder and offshore contractor said on Tuesday that it had signed a turnkey EPC contract for the Shinan Ui offshore wind project, a 390-megawatt (MW) wind farm to be built off Ui Island in South Jeolla Province. The total contract value is KRW 2.64 trillion (US$1.8 billion), of which the Korea Exchange-listed firm’s share amounts to KRW 1.97 trillion (US$1.34 billion).
Once completed, the project would more than double South Korea’s operational offshore wind capacity to roughly 740 MW, from about 0.35 gigawatts (GW) today, though it would still leave the country far behind regional leaders such as China with over 42 GW and Taiwan with around 4 GW.
The project will be jointly executed with Hyundai Engineering & Construction. Hanwha Ocean has led development work to date, including securing permits and building local support. Korea Midland Power, Hyundai E&C and SK Eternix are participating as equity partners.
The Korea Development Bank and KB Kookmin Bank have been appointed as lead arrangers for project financing, while the Future Energy Fund – backed by KDB and five major commercial banks – plans to invest KRW 544 billion (US$371 million) through equity and subordinated loans, the company said.
As part of the project, Hanwha Ocean said it had selected domestic suppliers for key components such as submarine cables, substructures and offshore installation. It also plans to build South Korea’s first wind turbine installation vessel capable of handling 15-megawatt-class turbines and deploy it at the site.
“The Shinan Ui offshore wind EPC contract represents an important turning point as we expand beyond shipbuilding into eco-friendly energy infrastructure,” Philippe Levy, head of the Energy Plant Division, said in a statement on Tuesday. He added that the company aimed to contribute to revitalising South Korea’s offshore wind supply chain and achieving carbon neutrality.
The Shinan Ui offshore wind project has been under development for much of the past decade, reflecting the slow and complex build-out of South Korea’s offshore wind sector.
Initial site studies and permitting began in the late 2010s, but progress was repeatedly delayed by environmental reviews, fisheries consultations, financing hurdles and changes in project partners.
The project has since been restructured, with Hanwha emerging as the lead developer and pushing it into the EPC and financing stage, making it one of the most advanced large-scale offshore wind developments currently moving towards construction in South Korea.
The global offshore wind market is expected to grow sharply, with cumulative installed capacity projected to rise from 83 GW last year to 441 GWs by 2034. South Korea’s offshore wind capacity, however, remains limited.
To accelerate deployment, the government has announced plans to expand ports, vessels and grid infrastructure, targeting 25 GW of offshore wind capacity by 2035.
Seoul has also released draft rules that would allow authorities to pre-designate offshore wind zones and cut permitting times by more than half, replacing a developer-led system that required companies to secure sites and approvals independently. Officials estimate the reforms could reduce approval times from about 71 months to 31 months.
Separately, the government plans to nearly double financial support for renewable energy projects next year. The climate ministry’s 2026 budget allocates KRW 648 billion (US$442 million) for offshore wind, agrivoltaic solar and RE100 industrial complexes, up 98.6 per cent from this year. Funding for broader renewable deployment will rise 37.1 per cent to KRW 214.3 billion (US$146 million).
Total climate ministry spending will increase 9.9 per cent year on year to KRW 19.16 trillion (US$13 billion) after parliamentary approval.
Coal, gas and nuclear power still dominate South Korea’s energy mix, with fossil fuels accounting for more than 60 per cent of electricity generation. Renewables contribute just over 8 per cent.
