South Korean media: 95% of South Korea's solar cells are made in China... handing over the entire market

¬ South Korean product share has dropped from 50% to 4% over 5 years

Last year, Chinese solar cells (solar cells) accounted for more than 95% of the South Korean market. The share of South Korean products, which was as high as 50% five years ago, fell to single digits for the first time in history. The offensive of Chinese products is not a sudden phenomenon, but it indicates that after mastering the low-cost solar module (panel) sector, China has also gained control over the technically intensive solar cell. This shows that South Korea is not only lagging behind China in price, but also in technology. Some opinions point out that the current focus on the promotion of solar energy in renewable energy policies should be shifted towards protecting South Korean industries and enhancing competitiveness.

South Korean solar cell market being eroded by Chinese products

On the 29th, data submitted by the Ministry of Industry, Trade and Energy to National Force Party Member Lee Jechoi showed that the market share of Chinese solar cells in South Korea increased from 38% in 2019 to 63% in 2021, 74% in 2023, and surged to 95% last year. In contrast, the market share of South Korean solar cells fell from 50% in 2019 to 35% in 2021, 25% in 2023, and sharply declined to 4.9% last year. This is the first time that the market share of South Korean cells has dropped below 10%. Solar cells from Taiwan, the United States, Japan, and Singapore, which once occupied a part of the South Korean solar market, had a market share of 11% in 2019, but dropped to 0% last year, disappearing from the market. Chinese solar cells have completely taken over the South Korean market.

The production sequence of solar panels is: polysilicon (raw material) → ingots and wafers (components) → cells → modules (panels assembled from multiple cells). Among them, the cell is the core component that converts solar energy into electric energy. Modules are labor-intensive assemblies of multiple cells, so price competitiveness is important. In contrast, the cell is a technologically intensive component, and its quality depends on the efficiency of converting light energy into electric energy.

Due to the offensive of Chinese low-cost modules, the market share of domestic products in the South Korean solar market has been continuously declining. But if the battery market is dominated by Chinese products, it means that it has gone beyond the scope of price competitiveness. A person related to a solar company said, "We lost the module market because we couldn't make it cheap enough, but we lost the battery market because we were at a technological disadvantage. The foundation of South Korea's solar industry is shaking."

In fact, China's photovoltaic industry has already moved away from the image of low prices and is currently controlling the global market. In the field of ultra-efficient tandem solar cells (Tandem), which use dual-layer solar cells to absorb different wavelengths of light to maximize power generation efficiency, China is accelerating commercialization.

But South Korea focuses only on popularization rather than industrial development

Experts point out that the Moon Jae-in government's singular policy of focusing on achieving renewable energy popularization goals accelerated the occupation of the market by China. Professor Ryu Seung-hoon of Seoul National University said, "Don't just focus on achieving national greenhouse gas emission reduction targets (NDC), but repeatedly make the policy mistake of emphasizing quantity over quality. It should simultaneously consider protecting and cultivating domestic industries."

However, there is concern that the Lee Jae-myung government may also fall into a speed race for solar energy popularization. From the budget, this government seems to focus more on the promotion of solar energy rather than cultivating the domestic solar industry. In the 2026 budget, the budget supporting the promotion of renewable energy increased by 99% compared to this year, reaching 60 billion won (approximately 300 million RMB), while the research and development (R&D) budget only increased by 7%, reaching 33.5 billion won (approximately 170 million RMB).

To respond to climate change, the South Korean government transferred the energy functions of the ministry to the Ministry of Climate and Environment, setting renewable energy development goals to reach 100GW by 2030, etc. This emphasis on promoting popularization has raised concerns. Last year, the installed capacity of renewable energy was 34GW. To help tandem solar cells achieve commercialization as soon as possible, the government established a "Solar R&D Planning Team" on the 19th, but this move is considered too slow compared to advanced countries that have already started R&D.

Lee Jechoi MP said, "We should not repeat the slogan of 'unconditionally increasing renewable energy to a certain scale,' but instead strengthen energy security and restore technological competitiveness through strategies to cultivate domestic industries."

Solar Cell (cell)

is a semiconductor device that converts the light energy of sunlight into electrical energy. The main material is polycrystalline silicon. When sunlight shines on the cell, electrons within the semiconductor move and generate electricity. A device that assembles multiple solar cells on a board is called a solar module (module). Installing solar equipment composed of many such modules in fields or on rooftops can produce electricity.

Source: Chosun Ilbo

Original: www.toutiao.com/article/1844674306654217/

Disclaimer: This article represents the views of the author.