This report does not constitute a rating action. Calls by the Korean government for more offshore wind power capacity will garner a mixed response from producers. We assume entities may not view the potential returns of the projects as sufficient to justify the lengthy and complicated review processes, and related execution risks. The government is promoting offshore wind power to increase energy self-sufficiency and the country's capacity for emerging use cases such as data centers backing AI. Policymakers aim to raise the country's offshore wind-power capacity tenfold by 2030. Government-related entities are committing to projects. However, the projects will form only a small part of their capital expenditure (capex). For example, one of the generating companies we rate has budgeted
