South Korea Sustainable Aviation Fuel Market Overview, 2031

The Sustainable Aviation Fuel market in South Korea has evolved from experimental pilot projects to becoming an integral component of the national aviation fuel ecosystem, reflecting the country’s commitment to decarbonizing air transport. Early adoption involved limited commercial flights, with carriers such as Korean Air deploying SAF blends on routes like Incheon to Haneda, establishing the first domestically certified usage and laying the groundwork for broader regulatory and market development. Production technology in the country relies on internationally recognized processes such as hydroprocessed esters and fatty acids, converting biomass and waste oils into fuels compatible with existing aircraft engines and infrastructure, while research into alternative feedstocks including microalgae and synthetic pathways is expanding production potential. Government policy has become a key driver, and phased increases in subsequent years, supported by tax incentives, eased feedstock regulations, reduced airport facility fees, and collaborative initiatives among airlines, refiners, and research institutions to facilitate implementation. Regulatory measures also include the development of national standards and certification systems to ensure SAF quality and compliance with international requirements. Market growth is further fueled by national climate targets aiming to reduce greenhouse gas emissions by 2030, rising passenger volumes, and the strategic interests of energy companies, including SK Energy, GS Caltex, S-Oil, and HD Hyundai Oilbank, which are scaling production through co-processing methods while exploring larger dedicated facilities. Airlines are securing SAF supply agreements and integrating blends into select routes in response to regulatory pressures and increasing passenger awareness of sustainability, while technological advancements benefit broader renewable fuel sectors. South Korea’s position as an early adopter in the Asia-Pacific region, supported by a strong refining base and export orientation, aligns with regional efforts toward eco-friendly aviation and reinforces the growing importance of sustainable alternatives amid rising middle-class travel demand.

According to the research report, "South Korea Sustainable Aviation Fuel Overview, 2031," published by Bonafide Research, the South Korea Sustainable Aviation Fuel is anticipated to grow at more than 19.8% CAGR from 2026 to 2031.South Korea’s sustainable aviation fuel market is rapidly evolving, driven by the adaptation of existing refinery infrastructure by major local players to meet emerging mandates and airline demand. SK Energy has taken the lead in commercial SAF production through co processing technology at its Ulsan complex, blending bio feedstocks such as used cooking oil and animal fats with conventional refinery streams, while obtaining international sustainability certifications including ISCC CORSIA, ISCC EU, and ISCC PLUS, supporting both compliance and export potential, and establishing supply agreements with carriers like Cathay Pacific and Korean Air. GS Caltex has positioned itself as a regional supplier by exporting SAF blended with neat SAF from partners such as Neste to markets including Japan, integrating international certification and trade channels. S Oil has commenced SAF production and supply for domestic routes with Korean Air, holding Control Union certification and exploring dedicated production facilities to scale output. HD Hyundai Oilbank has also entered the market, delivering SAF to Korean Air for select international routes and earlier exports, leveraging refinery co processing and broader biofuel capabilities. The market primarily revolves around blended SAF sales, supply contracts with domestic and international airlines, and export of certified fuel, with co processing currently dominant and plans for dedicated plants under discussion. Business models typically encompass upstream feedstock sourcing, midstream co processing or dedicated production, and downstream sales, generating revenue through direct sales, long-term contracts, and exports, supported by international certification. Opportunities lie in scaling production, accessing government incentives, and expanding airline partnerships, while promotion is focused on industry-facing sustainability certification and emission-reduction communication. Substitutes are limited, making cost differentials a key factor for airline adoption, and supply chain considerations span feedstock procurement, refinery integration, certification, logistics, and airport delivery, with pricing dynamics influencing customer decisions.

South Korea's sustainable aviation fuel market is evolving through a combination of biofuel, hydrogen, and Power-to-Liquid technologies, each playing a distinct role in decarbonizing air transport. Biofuels, primarily derived from waste cooking oil, animal fats, and other biomass, form the current foundation of domestic SAF production, with major refiners including SK Energy, S-Oil, GS Caltex, and HD Hyundai Oilbank producing bio-based SAF through co-processing or blending with conventional jet kerosene. These fuels are certified under sustainability schemes such as ISCC and CORSIA and are increasingly used on commercial flights. This segment supports the aviation industry by providing a drop-in alternative to fossil jet fuel that requires no aircraft modifications and offers immediate lifecycle carbon reductions. Hydrogen fuel represents a conceptually important yet early-stage segment, involving either direct hydrogen combustion or integration into synthetic fuel pathways such as e-SAF or PtL, with national initiatives like Ulsan Green Hydrogen Town and investments in hydrogen infrastructure creating an enabling environment. Research institutions and public-private collaborations are exploring hydrogen production and conversion methods that could feed aviation applications in the future, potentially achieving greater emissions reductions when coupled with renewable electricity and carbon capture. Power-to-Liquid fuel uses renewable electricity to generate green hydrogen through electrolysis, which is then combined with captured carbon to synthesize liquid fuels in processes similar to Fischer-Tropsch synthesis, with demonstration projects in Chungnam signaling emerging domestic capabilities. Airlines, particularly low-cost carriers, are gradually adopting 1 percent SAF blends to meet regulatory mandates while balancing cost considerations and operational feasibility, and government incentives, tax measures, and technology support are fostering development across all sub-segments, preparing the market for a transition toward higher blend ratios and more advanced fuel pathways.

South Korea’s sustainable aviation fuel market is evolving with a clear focus on fixed wing aircraft, which dominate commercial and general aviation sectors, including narrowbody and widebody passenger jets operated by carriers such as Korean Air and low cost airlines like Aero K. These airlines have actively piloted SAF usage on international routes including Incheon to Haneda and Cheongju to Kitakyushu using waste based SAF blends, aligning closely with the national SAF adoption strategy. Regulatory mandates requiring SAF blends for all departing international flights from 2027, with gradually increasing share requirements, primarily target conventional jet operations, which are almost exclusively fixed wing fleets. Government frameworks such as the Ministry of Land, Infrastructure and Transport’s SAF blending roadmap, along with compliance incentives and penalties, support supply chain expansion and fleet readiness, with refiners and airlines collaborating to prepare for higher blend ratios. Rotorcraft, including military and civil helicopters produced or operated domestically by companies such as Korea Aerospace Industries, account for a smaller portion of SAF adoption, as national policies and commercial initiatives focus on larger carriers. These operators prioritize reliability and mission readiness over alternative fuels due to limited production volumes and SAF prioritization for fixed wing services. The others category, including light sport aircraft, business jets like the KAI KC 100 Naraon, and unmanned aerial vehicles, is even less prominent in SAF usage since many rely on piston fuels or avgas, and turbine SAF mandates have minimal regulatory impact on this segment. Customer behaviour across the aviation ecosystem is largely airline-driven, with fixed wing carriers integrating SAF based on cost, compliance, and sustainability branding, whereas rotorcraft and smaller general aviation operators continue traditional fuel practices, adopting efficiency measures rather than SAF directly, supported by collaborative initiatives such as the SAF Alliance and domestic supply incentives.

South Korea’s sustainable aviation fuel market is evolving across multiple aviation platforms, including commercial aviation, military aviation, business and general aviation, and unmanned aerial vehicles, each shaping adoption, policy, and operator engagement. Domestic commercial aviation represents the most active segment, driven by government mandates and airline sustainability initiatives, with flag carriers and low-cost carriers incorporating SAF blends on international routes such as Incheon-Haneda and Cheongju-Kitakyushu using co-processed biofuels from local refiners. This follows earlier pilot flights and SAF supply agreements and aligns with the planned requirement for all outbound international flights to include a SAF blend from 2027, with ratios increasing through the 2030s. Government bodies, including the Ministry of Land, Infrastructure and Transport and the Ministry of Trade, Industry and Energy, support this segment through SAF blending mandate roadmaps, industry alliances, tax incentives, and eased feedstock regulations, enabling airlines to balance sustainability objectives with cost pressures and regulatory compliance in route planning and procurement. Military aviation has limited direct engagement with SAF, as national policy focuses on international civil departures, and the Republic of Korea Air Force prioritizes fuel reliability, logistics, and interoperability, although coordination on fuel standards and infrastructure could enable future adoption if supply scales. Business and general aviation, consisting of smaller jets, turboprops, and private aircraft, is not directly targeted by SAF mandates, with operators focusing on cost control and fuel availability, though competitive pricing and airport access may encourage future use. UAVs, operating mainly on electric propulsion or small combustion engines, are not significant SAF consumers, but broader sustainability policies and urban air mobility initiatives could influence future hybrid or advanced air vehicle designs.



Considered in this report
• Historic year: 2020
• Base year: 2025
• Estimated year: 2026
• Forecast year: 2031

Aspects covered in this report
• South Korea Sustainable Aviation Fuel Market with its value and forecast along with its segments
• Sustainable Aviation Fuel Market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Fuel type
• Biofuel
• Hydrogen fuel
• Power to liquid fuel

By aircraft type
• Fixed wings
• Rotorcraft
• Others

By platform
• Commercial aviation
• Military aviation
• Business & general aviation
• Unmanned aerial vehicle