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The growing demand for electricity, driven by factors such as the shift to carbon neutrality and economic growth, is a challenge shared by South Korea and Japan. South Korea, a peninsula nation, and Japan, an island country, which are both heavily dependent on foreign energy sources and have manufacturing-based industrial structures, are actively working to secure stable power supplies for their economic development. This article carries out a quantitative analysis of the roles of the South Korean and Japanese electric power sectors (EPSs) in their respective economies, seeking to identify differences and generate actionable insights for decision making and policy formulation. Utilizing the input–output (IO) technique with the latest available data, the analysis includes a demand-side model, a supply-side model, and a price-side model to examine various effects of the EPSs. The key findings reveal differences in the production-inducing, value-added creation, and job-creation effects between the two countries, highlighting operational disparities in their electricity sectors. Additionally, South Korea exhibits higher wage-inducing, supply shortage, and price-side effects than Japan, because of its public enterprise-oriented high-wage structure and a substantial manufacturing sector. These quantitative results provide valuable reference material for future government decisions and policy development in the EPS and emphasize the significant role and impact of the power sector in both countries. [ABSTRACT FROM AUTHOR]

Featured Application: This work assesses and compares the respective economic effects of the same amount of production or investment in the natural gas supply sector in South Korea and Japan. This study examines the role of the natural gas supply sector in the national economy by applying input–output analysis to South Korea and Japan. Specifically, the production-inducing effect, value-added creation effect, wage-inducing effect, employment-inducing effect, supply shortage effect, and price-inducing effect were analyzed using an input–output table of South Korea and Japan. As a result, the production-inducing effect, value-added creation effect, and employment-inducing effect of same investment amount in the natural gas supply sector were greater in Japan than in South Korea. On the other hand, the wage-inducing effect of an investment of USD 1 in the natural gas supply sector was found to be greater in South Korea than in Japan. In addition, the supply shortage effect and price-inducing effect in the natural gas supply sector were greater in South Korea than in Japan. The causes of differences in analysis results for each country and their implications were discussed. The results of this study could be a useful reference for the government to establish policies related to natural gas supply in the future. [ABSTRACT FROM AUTHOR]