South Korea Net-Zero Energy Buildings Market Overview, 2031

Key Insights

• According to the research report, "South Korea Net-Zero Energy Buildings Market Outlook, 2031," published by Bonafide Research, the South Korea Net-Zero Energy Buildings Market is anticipated to add to more than USD 2.85 Billion by 2026-31.
• South Korea has a highly urbanised building stock and a strong policy focus on improving building energy performance. The country’s 2050 carbon-neutrality objective is being translated into progressively wider Zero Energy Building (ZEB) requirements, creating demand for efficient building envelopes, HVAC systems, heat pumps, renewable-energy generation, energy storage and building-energy-management systems. The policy direction is particularly important for new apartments, commercial buildings and public facilities.
• South Korea’s ZEB policy is moving from a predominantly public-sector requirement toward broader private-sector coverage. Public buildings have been subject to phased ZEB requirements since 2020, with the threshold reduced to 500 m² in 2023. From 2025, private buildings of 1,000 m² or more and apartment developments with 30 or more households are subject to ZEB Grade 5-level design requirements. The roadmap calls for the private-building threshold to fall to 500 m² in 2030, expanding the addressable market further.
• The country’s ZEB framework focuses on reducing primary-energy consumption while increasing energy self-sufficiency. The certification system evaluates primary-energy performance and the proportion of energy supplied through on-site or eligible renewable generation. ZEB 5 requires an energy self-sufficiency rate of at least 20%, while ZEB 1 requires at least 100% and ZEB Plus at least 120%. This structure encourages developers to combine passive measures, efficient equipment and renewable generation rather than relying on a single technology.
• Building renovation is becoming an increasingly important part of South Korea’s decarbonisation strategy. The Third Green Building Master Plan for 2025–2029 calls for the phased introduction of green-remodeling requirements for older public buildings. This creates opportunities for insulation, windows, HVAC replacement, controls, energy monitoring and renewable-energy systems while also creating demand for energy audits, design services and performance verification.
• South Korea’s dense urban environment makes efficient use of limited building and roof space particularly important. High-performance insulation and glazing, efficient HVAC, heat pumps, rooftop and façade-integrated solar, battery storage and BEMS can help buildings reduce energy consumption while increasing renewable-energy self-sufficiency. In high-rise and densely developed areas, off-site renewable-energy arrangements can also become relevant where on-site generation potential is limited.

Market Outlook

• The South Korea Net-Zero Energy Buildings Market is being shaped by the country’s 2050 carbon-neutrality objective, the ZEB mandatory roadmap and the Third Green Building Master Plan for 2025–2029. The market is moving beyond voluntary demonstration projects as ZEB-related requirements expand into private construction. The next major expansion is scheduled for 2030, when the private-building threshold is planned to fall to 500 m².
• New construction will remain the strongest channel for ZEB technology deployment because energy performance can be incorporated into the project from the design stage. Developers can combine high-performance envelopes, efficient heating and cooling, heat recovery, smart controls, solar PV and energy-management systems to achieve the required ZEB performance. Integrating these measures early can also reduce the cost and disruption associated with later retrofits.
• Residential construction is particularly important because apartment developments with 30 or more households are included in the 2025 private-sector ZEB roadmap. This creates a large potential market for better insulation, efficient HVAC, heat pumps, renewable-energy systems and centralised energy-management solutions. Apartment developers must increasingly consider energy performance alongside construction cost, floor area, resident comfort and operating expenses.
• Renovation and retrofitting are expected to become a larger market opportunity as South Korea addresses its ageing public and private building stock. The government’s green-remodeling programme supports improvements such as insulation, windows, efficient heating and cooling equipment and renewable-energy integration. Public buildings are an important starting point because they can demonstrate performance improvements and provide reference projects for wider private-sector adoption.
• Equipment demand is likely to remain concentrated around technologies that improve both efficiency and energy self-sufficiency. Efficient HVAC, heat pumps, insulation, high-performance windows, solar PV, battery storage, ventilation systems, smart controls and BEMS can all contribute to ZEB performance. However, the optimal combination varies according to building size, use, climate, available roof area and the required ZEB grade.

Policies & Regulatory Landscape

• South Korea’s ZEB framework is primarily supported by the Green Buildings Construction Support Act and related regulations governing ZEB certification and building-energy performance. The Korea Energy Agency operates the ZEB certification system, which evaluates primary-energy consumption, energy self-sufficiency and building-energy-management capabilities.
• The current ZEB grading system ranges from ZEB 5 to ZEB 1, with ZEB Plus representing the highest level. ZEB 5 requires an energy self-sufficiency rate of at least 20%, ZEB 4 at least 40%, ZEB 3 at least 60%, ZEB 2 at least 80%, ZEB 1 at least 100% and ZEB Plus at least 120%. The system therefore provides a graduated pathway from minimum zero-energy performance toward buildings that generate substantially more renewable energy than their assessed primary-energy requirements.
• ZEB requirements have expanded in stages. In 2020, mandatory requirements began with public buildings of 1,000 m² or more. From 2023, the public threshold was reduced to 500 m², while public apartment developments of 30 or more households were also included. In 2025, private apartment developments with 30 or more households and private buildings of 1,000 m² or more moved into the ZEB Grade 5-level design framework.
• The next major expansion is scheduled for 2030, when private buildings of 500 m² or more are planned to be covered at the Grade 5-level. The roadmap also anticipates higher performance requirements for public buildings, although the exact scope and application can vary according to building use and size. This staged approach allows the market to build technical capacity before broader coverage is introduced.
• The Third Green Building Master Plan for 2025–2029 provides the current medium-term policy framework. It includes measures to strengthen ZEB certification, raise performance requirements for public buildings, strengthen design standards for private buildings of 1,000 m² or more and introduce the phased mandatory green remodeling of older public buildings.
• Green-remodeling policy is an important complement to the ZEB new-construction roadmap. Rather than focusing only on new buildings, the programme supports energy-performance improvements in existing public buildings through measures such as insulation, window replacement, energy-efficient equipment and renewable-energy systems. Recent analysis of completed public green-remodeling projects has also highlighted measurable electricity savings, strengthening the case for performance-based renovation.
• Building-energy-management systems are an important part of the ZEB framework. BEMS and related metering and monitoring capabilities help building owners track consumption, identify inefficiencies and manage energy use after construction. This is particularly relevant for larger commercial and institutional buildings where operational performance can significantly affect actual energy consumption.

Net-Zero Energy Buildings Procurement & Industry Impact

• ZEB procurement in South Korea typically involves public authorities, private developers, architects, engineering firms, general contractors, specialist installers, equipment manufacturers and energy-service providers. As requirements expand into private construction, energy performance is becoming a standard project consideration rather than a feature limited to demonstration buildings.
• Equipment suppliers need to provide products that can contribute to specific ZEB performance levels. Efficient HVAC, heat pumps, ventilation equipment, insulation, high-performance windows, solar PV, batteries, inverters, controls and BEMS all have roles in achieving higher energy performance. Suppliers that can provide reliable performance data and demonstrate compatibility with ZEB calculations can strengthen their position in the market.
• Renewable-energy integration is particularly important because energy self-sufficiency is a core element of ZEB certification. Rooftop solar is straightforward for low-rise buildings with sufficient roof area, while high-rise residential and commercial buildings may require façade-integrated PV, shared renewable systems or other approaches where roof space is limited.
• Solutions and services providers are gaining importance because ZEB compliance requires more than simply installing efficient equipment. Energy modelling, building simulation, certification documentation, commissioning and post-occupancy monitoring help ensure that a project achieves the intended performance. Retrofit projects also require detailed assessment of existing structures and operating conditions before technologies are selected.
• Procurement is gradually shifting toward integrated building performance. Developers increasingly need to consider energy consumption, renewable generation, occupant comfort and operating costs together. This favours suppliers and contractors that can coordinate multiple systems rather than providing isolated products.

Industry News

• In January 2025, the Ministry of Land, Infrastructure and Transport announced the Third Green Building Master Plan for 2025–2029. The plan strengthens the ZEB certification framework, raises performance requirements for parts of the public-building market, strengthens design requirements for private buildings of 1,000 m² or more and promotes the phased mandatory green remodeling of older public buildings.
• In 2025, South Korea expanded the private-sector ZEB framework. Private buildings of 1,000 m² or more and apartment developments with 30 or more households entered the Grade 5-level ZEB design framework. The change represents an important transition from a system focused primarily on public buildings toward broader application across private construction.
• In May 2025, LG Smart Cottage received ZEB Plus certification, making it the first prefabricated building in South Korea to achieve the highest ZEB certification level. The modular home recorded an energy self-sufficiency rate of 161.06% and demonstrated how integrated appliances, HVAC and rooftop solar can be combined in a compact residential building to achieve very high energy performance.
• In 2026, the Korea Energy Economics Institute published an assessment of public green-remodeling projects based on actual energy-use data from 522 buildings that completed green-remodeling work in 2020–2021. The analysis estimated an annual reduction of approximately 20.4 kWh/m² in electricity and gas energy use, highlighting the potential for measurable savings from existing-building upgrades.

Segment Analysis

Net-Zero Energy Buildings By Project Type
• New Construction provides the strongest opportunity to integrate ZEB technologies from the beginning of a project. Developers can combine efficient envelopes, high-performance windows, efficient HVAC, heat recovery, heat pumps, smart controls, solar PV and BEMS to meet the required performance level. The expansion of ZEB requirements into private buildings from 2025 and the planned 500 m² threshold for private buildings in 2030 will progressively widen this market.
• Renovation & Retrofitting is becoming an important second growth channel. Older buildings often require improvements to insulation, windows, heating and cooling systems, ventilation, controls and energy monitoring. The government’s green-remodeling programme and the phased introduction of mandatory measures for older public buildings are expected to increase demand for retrofit design, equipment replacement and performance-monitoring services.
Net-Zero Energy Buildings By Building Type
• Residential buildings, particularly apartment developments, represent a major opportunity because of the scale of multi-family housing in South Korea. Apartment projects with 30 or more households are covered by the 2025 Grade 5-level ZEB design framework. Developers therefore have stronger incentives to integrate insulation, efficient HVAC, heat pumps, solar PV, central energy systems and energy monitoring into new housing projects.
• Non-Residential buildings provide opportunities for more complex integrated solutions. Offices, hospitals, schools, universities, hotels, retail properties, government buildings and other commercial facilities often have significant HVAC, lighting and ventilation loads. These buildings can combine efficient mechanical systems, automation, BEMS, renewable generation and energy storage to achieve higher ZEB grades and reduce operating costs.
Net-Zero Energy Buildings By Component
• Equipment demand is increasingly focused on technologies that reduce energy consumption while improving renewable-energy self-sufficiency. High-efficiency HVAC, heat pumps, ventilation systems, insulation, high-performance glazing, solar PV, batteries, inverters, smart controls and BEMS are relevant across new and existing buildings. Technology selection depends on the building’s use, size, climate exposure, available renewable-generation area and target ZEB grade.
• Solutions & Services are becoming increasingly important as ZEB projects require detailed energy assessment and coordination. Building-energy modelling, energy simulation, ZEB certification support, engineering, commissioning, measurement and verification, retrofit planning, BEMS integration and digital monitoring help developers achieve and maintain targeted performance levels. For higher-grade projects, integrated services that coordinate the envelope, HVAC, renewable generation and controls are particularly valuable.

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



Aspects covered in this report
• Net-Zero Energy Buildings with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Project Type
• New Construction
• Renovation & Retrofitting

By Building Type
• Residential
• Non-residential



By Component
• Equipment
• Solutions & Services