Solar supply chain in South Korea's reliance on China is revealed to carry potential security risks for inverter systems.
South Korea is currently assessing the potential security risks associated with solar inverters manufactured in China, following a U.S. investigation that uncovered undisclosed communication devices within these products. The U.S. probe questioned whether these Chinese-produced inverters, which convert solar panel-generated direct current electricity into usable alternating current electricity, could represent cybersecurity threats, such as espionage, data leakage, and power grid sabotage.
In response, South Korea's Ministry of Trade, Industry, and Energy held a meeting with major domestic solar companies, including Hanwha Q CELLS, Hyundai Energy Solutions, and Hyosung Heavy Industries, to examine the deployment of these inverters and discuss potential threats. While the Korean government has not initiated a comprehensive domestic investigation into all solar inverters, it has become increasingly vigilant regarding the cybersecurity risks posed by these devices, given that about 90 to 95 percent of the inverters in Korea's market are either manufactured in China or are OEM products made in Chinese factories but sold under Korean brand names.
The excessive reliance on Chinese-made inverters has sparked concerns about the security of South Korea's energy infrastructure, as the undeclared communication modules within these devices could potentially be exploited to disrupt the power grid or breach sensitive operational data. Larger Korean firms reportedly conduct rigorous inspections of imported Chinese inverters, occasionally rejecting entire shipments if any anomalies are found, however, smaller companies may lack the resources for such comprehensive vetting procedures, potentially increasing vulnerability risks.
South Korea is taking cautious measures to evaluate and address risks related to Chinese-made solar inverters in light of the U.S. findings, emphasizing dialogue with industry stakeholders and closely monitoring the situation, but has not yet committed to a full-scale investigation or regulatory action.
- The government in South Korea has expressed concern about the high percentage of solar inverters in their market, which are either manufactured in China or OEM products made in Chinese factories.
- The Ministry of Trade, Industry, and Energy in South Korea has held meetings with major domestic solar companies to discuss potential threats posed by Chinese-made inverters, given the potential for cybersecurity risks.
- With about 90 to 95 percent of the inverters in South Korea's market coming from China, there is a possibility that undeclared communication modules within these devices could be exploited for power grid disruption or data breaches.
- South Korea is actively evaluating and addressing risks related to Chinese-made solar inverters, emphasizing dialogue with industry stakeholders, and closely monitoring the situation, but has not yet decided on a full-scale investigation or regulatory action.
