Stranded Assets refer to assets that lose their economic value or turn into liabilities due to unforeseen circumstances, such as shifts in the market environment. While they were once recognized for their economic utility, recent changes in the social landscape—including the growing emphasis on ESG and the impacts of climate change—have led to industries based on fossil fuels such as coal, petrochemicals, and oil refining, as well as high-carbon-emitting sectors like shipbuilding and steel, being classified as stranded assets.
South Korea has set a basic goal of achieving carbon neutrality by 2050. In line with this, discussions are underway regarding the phase-out and compensation of coal-fired power facilities classified as stranded assets, as well as countermeasures for energy-related infrastructure at risk of becoming stranded.
by Editor O