Financing in Place for 390 MW Shinan Ui Offshore Wind Project in South Korea

South Korea has completed the financial close structure for the 390 MW Shinan Ui offshore wind project, with funding set to begin flowing into construction from the second quarter of 2026.

The Financial Services Commission (FSC) announced on 9 April that a project financing agreement has been signed and the full lender group established, marking the start of large-scale capital deployment. The project is among the first “mega projects” backed under the government’s National Growth Fund programme, according to the FSC.

The total investment amounts to KRW 3.4 trillion (approximately EUR 2.3 billion), comprising KRW 510 billion (approximately EUR 345 million) in equity and KRW 2.89 trillion (approximately EUR 1.95 billion) in debt.

Of the debt portion, KRW 2.5 trillion (approximately EUR 1.69 billion) will be provided as senior loans by a group of 18 domestic financial institutions, including policy banks, major financial groups, regional banks, and insurers, with KRW 700 billion (approximately EUR 473 million) coming from the Advanced Strategic Industries Fund. A further KRW 390 billion (approximately EUR 264 million) will be structured as subordinated loans, including KRW 340 billion (approximately EUR 230 million) from the Future Energy Fund and KRW 50 billion (approximately EUR 34 million) from the Advanced Strategic Industries Fund. The financing has been arranged by Korea Development Bank and KB Kookmin Bank.

Following the signing of the financing agreement, subordinated loans, including policy-backed funds, are expected to begin disbursement in the second quarter of 2026. Loan drawdowns will then be carried out progressively in line with construction progress through to early 2029.

The Shinan Ui offshore wind project involves the construction and operation of a 390 MW wind farm located off the southern coast of Ui Island in Shinan County, Jeollanam-do. According to the FSC, the project is the first large-scale offshore wind development in the country to be financed entirely with domestic capital.

With the exception of wind turbines, most key components, including substructures, subsea cables, offshore substations, and installation vessels, will be sourced domestically, supporting the development of South Korea’s offshore wind supply chain.

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According to the FSC’s press release from 9 April, construction is already underway, with the project targeting completion and full operation in 2029.

Once operational, the wind farm is expected to supply clean electricity to several planned strategic industry clusters in Jeollanam-do, including an AI data centre in Haenam, a vaccine industry cluster in Hwasun, a secondary battery cluster in Gwangyang, a clean hydrogen hub in Yeosu, and a space launch vehicle industrial complex in Goheung.

The FSC said it will continue to work with relevant ministries and financial institutions to monitor implementation, ensure stable funding execution, and manage risks throughout the construction period.

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