South Korean growers sue state power utility, blaming climate change for crop damage

SEOSAN, South Korea (AP) — Hwang Seong-yeol stood at the edge of a golden field, watching nervously as a combine harvester crawled through his rice, churning up mud and stalks. Its steady hum filled the damp autumn air as grain poured into a truck waiting at the other end of the muddy paddy.

It was the final day of what Hwang said was one of his toughest seasons in three decades of farming. He and other farmers feel helpless against increasingly erratic weather that they link to climate change and damage to their crops. It has complicated their work and cast uncertainty over their futures.

Hwang is one of five South Korean farmers who recently sued the state utility Korea Electric Power Corporation and its power-generating subsidiaries, alleging that their reliance on coal and other fossil fuels has accelerated climate change and damaged their crops.

The lawsuit raises questions about whether power companies’ role in driving climate change, and the resulting agricultural losses, can be quantified. It is the first of its kind in South Korea, said Yeny Kim, a lawyer with the Seoul-based nonprofit Solutions for Our Climate, who is handling the case.

The case underscores the challenges South Korea, a manufacturing power that industrialized long after the Western nations now pressuring others to abandon fossil fuels, faces in transitioning to cleaner energy.

Hwang's fields are on a reclaimed coastal plain along South Korea’s western sea, where glimmering waterways crisscross dark, rich soil and flocks of migratory geese drift overhead, moving like a giant, living quilt.

A remarkably rainy September and October followed a bitterly cold spring that stunted plant growth. Summer floods caused further damage before the wet autumn bred fungal disease.

Hwang would have preferred to harvest in drier weather but had to do so sooner as relentless rains pushed rice stalks into the soil, causing the ripe grains to sprout. That day in late October was only the second dry day after 18 straight days of rain.

“It’s really unsettling – we know how much rice we should normally get from 30,000 pyeong (25 acres) of land, but the yield has been steadily declining every year,” said Hwang, who expects this year’s harvest to be 20% to 25% below normal.

“We began to question why it’s always the farmers — who haven’t done anything wrong — that end up suffering the consequences of the climate crisis. Shouldn’t we be demanding something from those who are actually causing it?”

Farmers are “inherently vulnerable" to climate change, said Kim, the lawyer.

In an annual climate report in April, South Korea’s government detailed how a year of extreme weather events in 2024, the country’s hottest year ever, triggered a series of “agricultural disasters” of heavy summer rains that destroyed thousands of hectares (acres) of cropland, followed by weeks of intense heat that wrecked still more crops, mostly rice.

Kim and her colleagues decided to file the lawsuit, which represents plaintiffs from across South Korea, after speaking with Hwang and others at farmers markets.

They say KEPCO, which holds a monopoly on electricity transmission and fully owns its subsidiaries, should bear some blame for the destabilized weather, citing what they say are excessive carbon emissions and a lagging transition to renewable energy.

From 2011-2022, the companies produced about 30% of South Korea’s greenhouse gas emissions and roughly 0.4% of global emissions, based on Kim's analysis of publicly available data.

“Therefore, they should also bear 0.4% of the responsibility for the farmers’ losses,” Kim said.

The lawsuit seeks initial damage claims of 5 million won ($3,400) per client, an amount likely to be adjusted as the case proceeds. The plaintiffs are also symbolically seeking 2,035 won ($1.4) each to urge the government to phase out coal power plants by 2035, ahead of its 2040 target.

Renewable energy accounted for only 10.5% of the national energy mix in 2024, and the five KEPCO subsidiaries relied on coal for more than 71% of the electricity they produced that year, according to government data.

KEPCO told The Associated Press it considers carbon reduction a key responsibility, citing its goal of cutting emissions 40% by 2030 from 2018 levels. But it declined to comment further on the lawsuit, saying it “cannot share information that could influence the verdict.”

Experts say mounting debt, now at over 200 trillion won ($137 billion), that accumulated over decades of government policies that kept electricity rates low for households and industries, limits the utility's ability to expand and modernize the power grid or invest in renewable energy.

Yun Sun-Jin, a professor at Seoul National University, said the lawsuit has symbolic value but questioned whether blame could fall solely on KEPCO, given that everyone benefits from its cheap electricity.

It would be difficult to prove the utility directly caused farm losses, when climate change is a “global problem,” she said.

It does draw attention to South Korea's need for a more effective approach to renewable energy, Yun said, including deregulating solar investments, expanding sources such as offshore wind, and ending KEPCO’s monopoly over electricity transmission to encourage other competitors with diverse technologies.

South Korea is expected to reach its target of 32.95% renewable energy by around 2038 — far slower than the 33.49% average in 2023 among developed economies in the Organization for Economic Cooperation and Development, according to the Institute for Energy Economics and Financial Analysis.

Some experts, including Yun, warn that South Korea’s slow shift to renewable energy could hinder its ambitions in advanced semiconductors and artificial intelligence, as its tech giants face global pressure to operate on clean power.

“Climate change and carbon neutrality are not just environmental concerns — they are economic issues, ultimately about jobs and our survival,” Yun said.

The impact of extreme weather resulting from climate change is far reaching in South Korea.

Farmers now face higher costs and must use more labor to produce the same or lower yields.

Ma Yong-un, an apple farmer in the southeastern town of Hamyang, said he is using more pesticides as pests and diseases become harder to control due to prolonged heat and humidity. The apples that thrived in cooler weather during his father's days are less plentiful and tasty, he said.

From tangerine farmers on Jeju island to strawberry growers in Sancheong to the southeast, farmers are trying to devise ways to survive.

For the first time since he began farming in 2011, Ma coated all the fruit on his 2,200 trees with a mixture of copper sulfate and lime to prevent fungal infections and skin damage from intense sunlight.

He began to think seriously about climate change in 2018, when a heavy April snowstorm damaged flower buds, leading to one of his worst harvests. Farming is becoming harder each year and he constantly wonders how much longer he can carry on.

“I think about that every day,” said Ma, who is raising two teenage boys with his wife. “The biggest concern is my children.”

A farmer works at a rice paddy in Seosan, South Korea, Monday, Oct. 20, 2025. (AP Photo/Ahn Young-joon)

Hwang Seong-yeol, a South Korean rice farmer, shows crops damaged by a fungal disease that spread during an abnormally rainy autumn at his rice paddy in Seosan, South Korea, Monday, Oct. 20, 2025. (AP Photo/Ahn Young-joon)

Farmers use combine harvesters at a rice paddy of farmer Hwang Seong-yeol in Seosan, South Korea, Monday, Oct. 20, 2025. (AP Photo/Ahn Young-joon)

A general view of the Dangjin Power Station is seen in Dangjin, South Korea, Monday, Oct. 20, 2025. (AP Photo/Ahn Young-joon)

Hwang Seong-yeol, a South Korean rice farmer, watches crops damaged by a fungal disease that spread during an abnormally rainy autumn at his rice paddy in Seosan, South Korea, Monday, Oct. 20, 2025. (AP Photo/Ahn Young-joon)

NEW YORK (AP) — Oil prices rose Monday following the latest fighting to threaten the U.S.-Iran ceasefire, but Wall Street isn’t very worried, and U.S. stocks ticked to more records.

The S&P 500 added 0.3% to its prior all-time high set on Friday. The Dow Jones Industrial Average rose 46 points, or 0.1%, and the Nasdaq composite climbed 0.4% to likewise set records.

A slight majority of U.S. stocks actually fell, including companies with big fuel bills hurt by higher oil prices. United Airlines lost 2.6%, and Alaska Air Group fell 3.3% after the price for a barrel of Brent crude oil climbed 4.2% to settle at $94.98. That clawed back a chunk of Brent’s loss from last week and means it’s still well above its price of roughly $70 from before the war.

Expensive oil has already sent inflation higher, which increases not only bills for households but also yields in the bond market. High yields worldwide recently have threatened to slow economies and undercut prices for stocks and all kinds of other investments.

But yields regressed during the day after oil prices came off their highest levels. That eased some of the pressure on Wall Street, and the Russell 2000 index of the smallest U.S. stocks went from a loss of 1.3% back to roughly even before finishing with a dip of 0.5%. Small companies can feel the pinch of higher borrowing costs in particular because of the need for many to borrow to grow.

Hope, meanwhile, seems to remain on Wall Street that the United States and Iran will ultimately reach an agreement to reopen the Strait of Hormuz, allow deliveries of oil to resume from the Persian Gulf and ease the upward pressure on inflation.

Strength from several market heavyweights also helped to power Wall Street.

Nvidia was the strongest force lifting the market and rose 6.2% after CEO Jensen Huang announced several product updates at a conference. What Nvidia does matters immensely for the U.S. stock market because it’s the biggest in terms of overall market value. That means the movements for its stock carry more weight on the S&P 500 than any other’s.

And Wall Street’s biggest companies have been growing so much that they’re dominating the market. The top 10 stocks control nearly half the S&P 500’s total market value, a 40-year high, according to Thomas Carroll, equity market strategist at Stifel.

That worked well as Big Tech stocks shot higher thanks to exuberance around artificial intelligence. But it could also weigh on the index if the market’s leadership broadens, Carroll warns. Even if most stocks end up rising in such a rotation, stagnation or declines for Big Tech heavyweights could drag on S&P 500 index funds.

A key indicator Carroll follows about market breadth “is signaling a rotation is coming,” he wrote in a report.

Elsewhere on Wall Street, Science Applications International Corp. jumped 10.4% after becoming the latest U.S. company to report bigger profit for the latest quarter than analysts expected. SAIC also raised forecasts for upcoming financial results.

A cavalcade of such better-than-expected profit reports has helped the U.S. stock market push to records despite the uncertainty created by the war with Iran.

Berkshire Hathaway fell 0.9% after saying it would buy homebuilder Taylor Morrison Home for $6.8 billion. It’s one of the first big acquisitions announced by the company since Greg Abel took over as its leader from famed investor Warren Buffett. Taylor Morrison Home jumped 22.3%.

MGM Resorts International leaped 16.1% after People Inc., Barry Diller’s business that was formerly known as IAC, offered to buy the rest of the company it doesn’t already own for $48.30 per share in cash.

All told, the S&P 500 rose 19.90 points to 7,599.96. The Dow Jones Industrial Average added 46.42 to 51,078.88, and the Nasdaq composite rose 114.19 to 27,086.81.

In the bond market, Treasury yields climbed with oil prices and after a report said growth in U.S. manufacturing accelerated by more last month than economists expected. The yield for the 10-year Treasury briefly approached 4.52% before regressing to 4.46%, up from 4.45% late Friday.

High yields have already forced the average long-term U.S. mortgage rate to its most expensive level in nine months, and they could curtail companies’ borrowing to build the AI data centers that have supported the U.S. economy’s growth recently.

In stock markets abroad, indexes fell in Europe following a stronger finish in Asia.

Tokyo’s Nikkei 225 rose 0.9% to an all-time high. SoftBank Group, the investment company that focuses heavily on AI, soared 21.2% and surpassed Toyota to become Japan’s most valuable listed company.

In South Korea, the Kospi index jumped 3.7% to a record after data showed the country’s exports surged 53% in May from a year earlier, buoyed by global demand for semiconductors.

AP Business Writers Chan Ho-him and Matt Ott contributed.

Trader Edward Curran works on the floor of the New York Stock Exchange, Monday, June 1, 2026. (AP Photo/Richard Drew)

Specialists Philip Finale, left, and Meric Greenbaum work on the floor of the New York Stock Exchange, Friday, May 29, 2026. (AP Photo/Richard Drew)

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 1, 2026. (AP Photo/Ahn Young-joon)

Currency traders work near a screen showing the Korea Composite Stock Price Index (KOSPI) and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 1, 2026. (AP Photo/Ahn Young-joon)

A currency trader talks on the phone at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Monday, June 1, 2026. (AP Photo/Ahn Young-joon)