Green Industrial Policy and Energy Transition Governance: Comparative Institutional Analysis of Germany and South Korea

Abstract

The acceleration of global climate change has intensified the strategic importance of green industrial policy and energy transition governance within contemporary public administration and development policy. Governments increasingly seek to balance decarbonization commitments, industrial competitiveness, energy security, and socio-economic stability through coordinated policy interventions. This article comparatively analyzes Germany and South Korea to examine how institutional governance structures shape green industrial transformation and energy transition outcomes. Germany represents a decentralized and consensus-oriented transition model rooted in regulatory environmentalism and multi-level governance, while South Korea represents a state-coordinated industrial transition model emphasizing strategic industrial policy and technological modernization. Drawing upon comparative institutional analysis and policy implementation evaluation, the study integrates evidence from OECD, International Energy Agency (IEA), World Bank, European Commission, and national policy documents between 2020 and 2026. The findings demonstrate that energy transition effectiveness depends not only on technological innovation or climate commitments but also on institutional coordination, administrative adaptability, industrial policy integration, and governance legitimacy. Germany demonstrates strengths in regulatory sustainability and participatory governance but faces coordination complexity and implementation delays. South Korea demonstrates stronger centralized policy execution and industrial mobilization but encounters governance challenges related to energy dependence and stakeholder participation. The article argues that sustainable green transition governance requires integrated institutional systems linking climate policy, industrial transformation, labor adaptation, and developmental resilience. The study contributes to integrated policy scholarship by developing a comparative governance framework connecting industrial coordination, institutional capacity, policy implementation, and socio-economic sustainability within contemporary energy transition governance.