South Korea’s solar inverter manufacturers are banding together to challenge what they describe as an over-reliance on Chinese equipment, warning that Beijing’s near-monopoly could threaten national energy security just as the country gears up for a major renewable energy expansion.
Solar inverters – which convert direct current from solar panels into alternating current for the grid or household use – are already dominated by Chinese suppliers, accounting for more than 90 per cent of the South Korean market when original design manufacturing (ODM) products are included.
Concern over that dependence prompted eight domestic producers, including OCI Power, Geumbi Electronics, Dasstech and Dongyang E&P, to establish the “Korea Solar Inverter Industry Council” on 18 November, with OCI Power appointed as chair. The grouping aims to curb Chinese market concentration and press the government for stronger support for local components.
“Today the inverter market is worth KRW200 billion (US$135 million) to KRW300 billion (US$203 million) a year, but if 10 gigawatts (GW) of solar is deployed annually, the market could reach up to KRW1 trillion (US$678 million),” said Lim Sung-taek, head of OCI Power’s research institute. “However, under the current situation … more than 90 per cent could end up being Chinese-made.”
Industry officials estimate inverters typically account for about 10 per cent of solar installation costs. With 10GW of annual deployment amounting to roughly KRW10 trillion in project spending, the inverter segment alone would be valued at around KRW1 trillion. Manufacturers say large domestic module makers frequently import Chinese inverters under ODM arrangements and rebrand them for local sale.
Companies at the meeting also raised energy security concerns, warning that the country could face vulnerabilities similar to the 2021 urea solution shortage caused by China’s export restrictions, when more than 90 per cent of South Korea’s urea imports came from China.
Officials noted the risks were not hypothetical. In the United States, authorities warned in May that vulnerabilities in Chinese-made solar inverters could be exploited by hackers, potentially disrupting electricity supply. The alert prompted an investigation into whether compromised inverters could trigger outages across parts of the grid.
“An inverter is not just a power converter,” Lim said. “You can measure power, monitor plant conditions and even control the grid. It is a core piece of energy security equipment, but this has been overlooked while supply has been driven by low prices.”
The climate ministry plans to expand renewable energy capacity by 100GW by 2030, requiring more than 10GW of solar installations each year over the next five years. Solar energy made up about 7 per cent of electricity generation for South Korea in 2024.
As part of achieving its 2035 emissions-reduction target, the government is also preparing a green transition strategy known as K-GX, which outlines policies to grow domestic green industries, support clean energy deployment and strengthen the supply chain for key technologies such as solar equipment.
Industry groups want K-GX to include measures that promote domestic components and mandate the use of locally made inverters in public sector solar projects such as those in industrial complexes and public car parks. They say policy debates have centred too heavily on modules, leaving inverter makers without a unified voice.
Participants also discussed improving the competitiveness of Korean-made inverters, saying the goal should be to offer affordable, high performance equipment rather than rely on blanket protectionism. Some noted that inverter technology has largely standardised, narrowing the gap with Chinese products.
