Nearly 70% of the hydrogen city projects the government is building across South Korea are running one to four years behind schedule, according to data released on the 22nd. Critics say the relevant ministries and agencies have been passive in resolving the delays even as more than 500 billion won in state and local funds flows into the projects.
Ten of the 15 hydrogen city projects nationwide were behind their completion targets, according to a document titled "Project Status of 15 Hydrogen Cities" that the Ministry of Land, Infrastructure and Transport submitted to the office of Rep. Kim Mi-ae of the People Power Party, a member of the National Assembly's Land, Infrastructure and Transport Committee. Hydrogen cities are designated municipalities equipped with infrastructure that allows hydrogen to be used in homes, transportation and power generation.
Following a pilot program in 2020, the government has launched hydrogen city projects at 15 locations: six in 2023 (Pyeongtaek, Namyangju, Dangjin, Boryeong, Gwangyang and Pohang), three in 2024 (Yangju, Buan and Gwangju's Dong District), three in 2025 (Ulsan, Seosan and Uljin) and three in 2026 (Cheongju, Yeongam and Ansan).
The combined budget for the 15 projects now under way totals 532.825 billion won. Local governments are contributing 261.75 billion won, more than the 245.75 billion won in central government funds, with private investment accounting for 25.325 billion won.
Despite that scale of spending, 10 projects were delayed by as much as four years. In Namyangju, Gyeonggi Province, selected in 2023, a four-year delay was projected because of administrative delays related to the site. Other reasons cited included changes to hydrogen supply plans (five sites), changes to project sites or administrative delays tied to sites (four sites), changes to pipeline routes (two sites) and timing considerations for linked industrial complex development and securing power supply (one site). The figures count overlapping causes, indicating that similar problems are recurring across multiple regions.
Execution of central government funds stood at just 59%, showing that project sites have been unable to absorb their budgets. Of the 125.4 billion won in state funds disbursed from 2023 through 2026, only 73.565 billion won was actually spent, excluding carryovers.
Even so, the land ministry said it plans to invest 550 billion won in state and local funds combined in hydrogen cities from 2027 through 2030. The annual breakdown is 150 billion won in 2027, 160 billion won in 2028 and 120 billion won each in 2029 and 2030. The ministry's stated basis for the annual plan includes continuing projects plus two new projects each year.
"Hydrogen cities are an important project that builds the foundation for future industries in local regions, and local governments are shouldering contributions no smaller than the state's," Kim said. "Responsibility for the delays must not be shifted onto individual regions alone."
She added: "The government should draw up recovery schedules and support measures for each project so that existing work is completed without disruption, while reviewing its selection and management systems so the same causes of delay are not repeated in new projects. It should also review in advance who will operate the facilities and how maintenance will be funded, so that the burden does not fall excessively on local governments after completion."
