On 19th September 2025, the Republic of Korea’s Ministry of Land, Infrastructure and Transport (MOLIT) and Ministry of Trade, Industry and Energy (MOTIE) jointly announced the country’s long-awaited Sustainable Aviation Fuel (SAF) mandate. This landmark policy sets a clear trajectory for SAF adoption in Korea’s aviation sector, aligning with global decarbonization goals while accounting for domestic industry readiness.

Key Policy Features

Blending Ratio Mandate

• 2027: 1% SAF blending requirement

• 2030: 3–5% (final ratio to be set in 2026)

• 2035: 7–10% (final ratio to be set in 2029)

By using ranges beyond 2030, the government reflects uncertainties in global SAF markets and domestic production capabilities.

Obligated Parties & Compliance – MOTIE

• Obligated Parties: Oil refiners and import/export companies.

• Compliance Basis: SAF supply measured against total jet fuel demand for international flights departing Korea.

• Penalty: Non-compliance will eventually attract a fine of up to 150% of the average SAF market price. Penalties will be phased in to give industry time to adjust.

• Flexibility: Up to 20% of the mandated volume can be carried over for up to three years. Adjustments will also be allowed in force majeure events.

From 2030, SAF with higher carbon reduction scores may receive additional weighting, and new fuel quality standards will be finalized by mid-2026.

Refueling Obligation – MOLIT

• Starting 2028, international flights must refuel with SAF-blended jet fuel at Korean airports, covering at least 90% of annual uplift.

• Penalties for non-compliance mirror the supply-side penalty structure but will be deferred by one year.

• New airlines are exempt for three years, and exemptions apply for safety or operational constraints.

• Flexibility measures (carry-over of 20% for up to three years) will also apply.

Government Support Measures

MOLIT Initiatives:

• Push for international recognition of SAF co-products (e.g., naphtha, diesel) at ICAO.

• Incentives for airlines exceeding mandated SAF use, including higher bonus points in international air traffic rights allocation.

• Conversion of airport fee discounts into direct subsidies for SAF-using airlines starting in 2027 (₩600 million allocated for 2025–2026).

MOTIE Initiatives:

• Continued tax credits and financial incentives for SAF R&D and production facilities (up to 25% investment support and 40% R&D support).

• Promotion of next-generation technologies such as synthetic e-fuels.

• SAF feedstocks to be designated as economic security items to secure long-term supply chains.

• Development of new sources like microalgae and creation of a global bio-feedstock map.

• Establishment of a dedicated Alternative Fuel Center within the Korea Petroleum Quality & Distribution Authority by 2027.

Korea's comprehensive policy

Korea’s SAF mandate is a major step in Asia’s aviation decarbonization journey. By phasing in blending requirements, balancing obligations between refiners and airlines, and supporting the sector with tax credits, subsidies, and feedstock security measures, Korea is positioning itself as a serious player in the global SAF market.

The policy also signals Korea’s intent to align domestic aviation with international climate commitments while ensuring its airlines and refiners remain competitive.