South Korea Targets Emission Cuts with Upcoming Carbon Exchange

South Korea is preparing to introduce a voluntary carbon exchange in the second half of this year, aiming to expand opportunities for carbon credit trading and strengthen its greenhouse gas (GHG) reduction strategy. The Ministry of Economy and Finance confirmed the plan as part of its broader Korean Carbon Credit Activation Plan.

Namsan Park in central Seoul, with the iconic N Seoul Tower. Ai generated picture. 

The announcement was made in Seoul by First Vice Minister Lee Hyung-il, joined by representatives from the Korea Exchange, the Korea Chamber of Commerce and Industry, and companies including Greenery, Namoo EnR, LD Carbon, Winkle, and Carbon Energy.

The exchange will provide a dedicated platform for certified voluntary carbon credits, complementing the country’s emissions trading system. Officials stressed that strict verification and certification standards will be applied to ensure transparency and reduce the risk of greenwashing.

Lee called for ‘active participation from the private sector to revitalise the carbon credit market’, noting that the initiative will establish a foundation for South Korea’s carbon credit market by 2025. This milestone will play a key role in achieving the nation’s 2030 Nationally Determined Contribution (NDC).

South Korea’s NDC sets out a goal of reducing GHG emissions by 40% compared with 2018 levels. To support this, the government plans to source 37.5 million carbon credits from overseas Article 6 projects. With implementation rules for Article 6.2 of the Paris Agreement agreed at COP29, voluntary markets can now integrate more seamlessly into global carbon trading systems.

Before the platform goes live, authorities will gather feedback from stakeholders and coordinate with ministries to refine the measures. Analysts point out that South Korea has already entered into agreements with 11 countries and has several international projects underway. While current volumes remain below the required 37.5 million tonnes of CO₂ equivalent, the new framework is expected to unlock further capacity and help accelerate progress toward national climate commitments.