South Korea’s energy import dependence reached 93.7% in 2024, underscoring its exposure as geopolitical tensions intensify competition for hydrogen and energy security. The International Energy Agency says hydrogen can reduce reliance on fossil-fuel imports and diversify supply chains, while national hydrogen strategies have expanded to 66 countries in 2026 from 23 in 2021. China, Japan and the European Union are increasing support, and global committed investment in clean hydrogen has surpassed $130 billion. South Korea, however, is cutting hydrogen fuel-cell vehicle subsidies 23% to 445.7 billion won and refueling-station subsidies 37% to 119.7 billion won under its proposed 2027 budget. Tax incentives are being phased out, general hydrogen-power auction volumes have fallen to 930 GWh from 1,300 GWh, and companies will receive only one year of advance visibility on auction volumes. The Hydrogen Economy Committee has not met since November 2024, fueling warnings that policy uncertainty could erode South Korea’s hydrogen leadership and industrial ecosystem. An oil-price cap introduced during the Middle East conflict has also contributed to fiscal pressure, with refiners’ cumulative losses reaching 5 trillion won through June against 4.2 trillion won in contingency funds.