South Korea / National law
Korea K-ETS
Act on the Allocation and Trading of Greenhouse Gas Emission Permits — Korea Emissions Trading Scheme
In force2025-11-11NewModified
Topic : Climate · Level : National
Today
Phase 4 (2026-2030) running; plan approved 11 Nov 2025 with cap 2.537 GtCO2e and more auctioning.
Summary
Korea's national emissions trading scheme, running since 2015, covers most industrial and power emissions. Phase 4 (2026-2030) has a 2.54 GtCO2e cap and more auctioning, reaching 50% in power by 2030.
Who is concerned
- Turnover
- non précisé
- Employees
- non précisé
- Listed company
- cotées et non cotées
- Sectors
- Power
- Steel, petrochemicals
- Cement, semiconductors
- Buildings, transport, waste
- Triggering activities
- >=125,000 tCO2e/yr company (direct+indirect)
- And a facility >25,000 tCO2e/yr
- Extraterritorial reach
- No
non précisé
- Examples
- Korean steelmaker
- Korean battery or chip plant
What the law requires
- Monitor and report verified emissions each year
- Surrender allowances equal to verified emissions
- Buy auctioned allowances for the non-free share
Penalties
Shortfall fine up to 3x the average allowance market price of the compliance year.
SUPPLIER INTELLIGENCE
What this changes for a supplier in China
Indirect: Korean buyers facing higher carbon costs may push Chinese suppliers for lower-carbon inputs and data.
Expected evidence
- Product carbon footprint
- Energy mix of supplying site
- Material emission factors
Tiers : Tier 1
Net Zero Pulse