South Korea has finalized a national Sustainable Aviation Fuel (SAF) policy that will require every international flight departing from its airports to use a minimum 1% blend of SAF in jet fuel starting in 2027, with a clear roadmap to increase that share over the next decade. The SAF mandate is fully adopted and now entering implementation, with the Ministry of Land, Infrastructure and Transport (MOLIT) preparing detailed enforcement rules, certification, and incentive programs. Officials and industry executives say the move aims to cut aviation emissions while keeping Korean airlines and refiners competitive as global rules tighten.
Airlines, refiners, and research institutions have formed a new “SAF Alliance” to coordinate supply, quality control, and pricing. The Alliance signals a rare industry-government push to meet the early 1% blend requirement and scale up to 3–5% by 2030 and 7–10% by 2035.
Key regulatory requirements and timeline
- 2027: All international departures from Korean airports (Incheon, Gimpo, Busan, and others) must use at least a 1% SAF blend.
- 2028: International flights must source at least 90% of their jet fuel within South Korea, with a three-year grace period for new airlines.
- Roadmap targets: 3–5% by 2030 and 7–10% by 2035.
MOLIT will provide guidance on monitoring and reporting so carriers can prepare procurement contracts well in advance. Analysis by VisaVerge.com indicates the combined blending and domestic fueling requirements align Korea with global trends while anchoring a homegrown fuel market that can expand and export as demand rises.
Certification, enforcement, and incentives
MOLIT’s responsibilities:
– Oversee compliance and publish detailed technical standards for acceptable SAF pathways.
– Run audits to confirm blending ratios on uplifted fuel.
– Build a certification system that verifies sustainability, tracks blending ratios, and promotes price transparency.
Incentives for airlines and producers:
– Airlines that exceed the minimum 1% blend will be eligible for subsidies, tax relief, and reduced airport facility fees.
– Direct support for domestic producers: subsidies and targeted tax incentives for refiners and chemical companies investing in SAF capacity.
– Government notes no new fueling infrastructure is required for the initial 1% because certified SAF can be blended and handled like conventional jet fuel.
Important: The government intends to give clear monitoring and reporting guidance so carriers can secure procurement contracts well before the implementation date.
Industry investments and capacity
Major energy firms’ commitments:
– SK Energy: Invested ₩15 billion (~$11 million) in a dedicated SAF line at its Ulsan complex, targeting 100,000 tons/year and an estimated 300,000 tons CO₂ reduction per year when used in aircraft.
– GS Caltex: Partnered with Neste (Finland) to secure feedstock and finished product for domestic use and exports.
– HD Hyundai Oilbank and S-Oil: Obtained international certifications, started exports, and are developing SAF facilities.
Economic context:
– A single dedicated SAF plant can cost about ₩1 trillion (~$720 million) to build.
– Industry experienced deficits of about ₩1.5 trillion in H1 2025, tightening margins.
Supply pathways and technical challenges
Feedstock constraints:
– Global supply of sustainable feedstocks (used cooking oil, animal fats, certain plant oils) is limited.
– Stricter sustainability rules narrow acceptable inputs.
Advanced pathways being explored:
– Alcohol-to-jet (ATJ)
– Gasification plus Fischer-Tropsch synthesis
These advanced routes require high capital spending and multi-year construction and certification cycles. The 90% domestic fueling rule from 2028 provides a critical demand signal that helps justify investment and financing.
Practical impacts for airports and operations
Passenger-facing impact:
– Largely invisible to travelers — certified SAF is a drop-in fuel compatible with current engines and infrastructure.
– You may see information tags in booking systems noting SAF content or airlines promoting specific lower-carbon routes.
Operational and back-office changes:
– Airports and carriers must track certificates, reconcile sustainability claims, and match uplifted quantities with supplier documentation.
– MOLIT plans to streamline this with digital reporting templates and clear audit schedules.
Airline economics and strategy
Cost considerations:
– SAF typically costs about twice as much as conventional Jet A-1, with variability depending on feedstock and delivery routes.
– Early estimates: mild increase in cost per available seat kilometer (CASK) in the first phase; larger increases as blend rises to 3–5%.
Mitigating measures:
– Government fee reductions and tax relief for carriers exceeding minimum blends.
– Long-term offtake agreements to lock in prices with domestic producers.
– Airlines may phase higher blends into premium routes where passengers are more willing to pay for lower-carbon travel.
Consumer engagement:
– Carriers testing labels showing SAF content per flight or network averages.
– Loyalty programs may allow customers to support additional SAF purchases with miles or cash.
Role of the SAF Alliance
Functions:
– Exchange technical data and coordinate logistics across airports.
– Share production forecasts to help stabilize pricing and reduce volatility.
– Coordinate trial runs and common blending/quality check patterns to shorten certification timelines.
Compliance steps for airlines (action checklist)
- Secure supply contracts guaranteeing at least a 1% SAF blend for all international departures from Korean airports.
- Verify each delivery meets government sustainability and quality certification.
- Maintain clear records of volumes, blend ratios, and certificates for audits.
- File regular compliance reports with MOLIT and respond to data requests on schedule.
- Apply for subsidies, tax relief, and reduced airport facility fees if exceeding the minimum blend.
- Participate in the SAF Alliance for supply updates, certification changes, and joint logistics planning.
Risks, contingency planning, and open questions
- Supply disruptions: MOLIT will publish contingency rules as the start date approaches to maintain compliance without causing cancellations.
- Imported SAF: The certification framework is being designed to recognize reputable international standards to avoid duplicate testing.
- Book-and-claim: Policymakers are evaluating how and where book-and-claim fits without weakening traceability for uplifted fuel.
- Domestic fueling rule impact: Carriers that rely on tankering (taking extra fuel abroad) may need new planning strategies; the three-year grace period protects new entrants.
Broader context and expected outcomes
Climate alignment:
– SAF can reduce lifecycle greenhouse gas emissions by up to 80% compared to fossil jet fuel, depending on feedstock and production method.
– South Korea’s timeline aligns with ICAO net-zero goals and mirrors the EU’s ReFuelEU measures.
Economic and strategic benefits:
– Creates high-skill jobs in refining, chemicals, logistics, and testing.
– Positions Korea to export SAF to nearby markets that adopt targets but lack refining capacity.
– Anchors domestic demand, supporting financing for new facilities and reducing exposure to import volatility.
Reporting, feedback, and next steps
- MOLIT has signaled it will keep channels open for feedback during the first year of enforcement, particularly on certification and documentation requirements.
- The ministry is exploring recognition of international certifications to reduce duplicate testing.
- Industry groups, such as the Korea Petroleum Association, will serve as contact points for refiners and suppliers on technical matters.
For official policy details, certification standards, and compliance guidance, MOLIT provides updates and contacts through its website at www.molit.go.kr. Airlines, refiners, and suppliers should use that channel to confirm the latest requirements, coordinate reporting templates, and follow any adjustments as the SAF mandate rolls out.
With policy now in force and industry investments accelerating, the next two years will shape how quickly Korea’s aviation sector moves from early adoption to routine use of Sustainable Aviation Fuel — starting at 1% in 2027, then progressing to 3–5% by 2030 and 7–10% by 2035 as supply, trust, and experience grow.
This Article in a Nutshell
South Korea’s government has finalized a national SAF mandate requiring all international flights departing Korean airports to include a minimum 1% SAF blend from 2027, with targets of 3–5% by 2030 and 7–10% by 2035. MOLIT will set technical standards, auditing procedures, certification systems, and monitoring and reporting guidance, while offering incentives such as subsidies, tax relief, and reduced airport fees for carriers exceeding the minimum. The SAF Alliance—composed of airlines, refiners, and research institutions—will coordinate supply, quality, and pricing. Major energy firms like SK Energy and GS Caltex are investing in capacity, though feedstock limits, high capital costs, and current SAF price premiums pose challenges. The 2028 rule requiring 90% domestic fueling for international flights will bolster local demand and support financing for new facilities. The policy aims to cut aviation emissions, grow a domestic SAF industry, and align South Korea with international decarbonization efforts.
