South Korea is transitioning its carbon reduction strategy from a regulatory approach to a market-driven model. The government is establishing a voluntary carbon market exchange on the Korea Exchange to allow companies to trade standardized carbon credits as financial products. This shift aims to overcome the limitations of the existing Emission Trading System (ETS), where low prices and oversupply reduced incentives for industrial investment. By treating carbon reduction as a revenue-generating business model rather than a cost, Korea seeks to meet its 2035 greenhouse gas reduction targets.
