AC Demand in South Korea Surges Amid Record Heat

AC Demand in South Korea Surges

South Korea: Sweltering summer temperatures in South Korea are driving a sharp rise in air conditioner demand and electricity usage, as leading electronics manufacturers promote energy-saving upgrades. Samsung Electronics reported a 50% year-on-year increase in domestic air conditioner sales in the first quarter of 2025, while LG Electronics saw a 60% surge in the same period. Despite government estimates indicating that 98% of the country's 51 million households already own AC units, consumers continue to invest in newer, AI-powered, and energy-efficient models. Both companies expect continued growth in their AC businesses, with LG operating its production lines above full capacity and Samsung beginning full-capacity operations 10 days earlier than usual.

Temperatures in Seoul soared to 37.8°C in early July, before the traditionally hottest month of August, fueling an upward trend in global cooling demand. The International Energy Agency (IEA) projects that global power demand for cooling will increase by approximately 1,200 terawatt hours by 2035, surpassing the expected 800 TWh increase from data centers. According to Renub Research, the global air conditioner market is projected to grow at an average annual rate of 6.3% through 2032, reaching 357.2 trillion won (USD 257.2 billion). The IEA also anticipates that 50% of global households will have air conditioners by 2035, up from 36% in 2022.

In response to escalating energy consumption, South Korea's energy ministry has warned of record electricity demand, projecting peak usage could reach 97.8 GW between 5 p.m. and 6 p.m. on weekdays in the second week of August, primarily due to air conditioning. The country is reinforcing its power reserves by boosting coal imports and reactivating underutilized coal-fired power plants. Residential air conditioning accounted for 16% of the nation's annual electricity consumption last year, up from 14% before the pandemic. To support low-income households, the government is also distributing energy vouchers and easing tariffs to facilitate AC usage.

Source: Reuters