ENFORCEMENT DECREE OF THE ACT ON THE ALLOCATION AND TRADING OF GREENHOUSE GAS EMISSION PERMITS

Article 1(Purpose) #

The purpose of this Decree is to prescribe matters mandated by the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits and matters necessary for the enforcement thereof.

Article 2(Formulation of master plan for emissions trading system) #

(1) The Minister of Economy and Finance and the Minister of Climate, Energy and Environment shall jointly formulate a master plan for the emissions trading system (hereinafter referred to as "master plan") under Article 4 of the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits (hereinafter referred to as the "Act") not later than one year prior to the beginning of each commitment period. <Amended on Oct. 1, 2025>

(2) Where the Minister of Economy and Finance and the Minister of Climate, Energy and Environment formulate or modify a master plan under Article 4 (1) and (3) of the Act, they shall hold public hearings, etc. under paragraph (4) of that Article to collect the opinions of the relevant central administrative agencies, local governments, and interested parties and reflect their opinions in the master plan, if the presented opinions are deemed reasonable. <Amended on Oct. 1, 2025>

(3) Where the Minister of Economy and Finance and the Minister of Climate, Energy and Environment formulate or modify a master plan under Article 4 (1) and (3) of the Act (excluding matters under paragraph (4)), the Ministers shall collect opinions under paragraph (2) and then refer the matter to the 2050 Carbon Neutrality and Green Growth Committee (hereinafter referred to as the "Carbon Neutrality Committee") under Article 15 of the Framework Act on Carbon Neutrality and Green Growth For Coping with Climate Crisis (hereinafter referred to as the "Framework Act") and the State Council for deliberation pursuant to the main clause of Article 4 (5) of the Act. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(4) "Minor matters prescribed by Presidential Decree" in the proviso of Article 4(5) of the Act means any of the following:

1. Matters regarding international cooperation under Article 4(2)7 of the Act;

2. Matters regarding the nurturing professional human resources, education, public relations, etc. under Article 4(2)8 of the Act.

(5) The Minister of Economy and Finance and the Minister of Climate, Energy and Environment may request that the Greenhouse Gas Inventory and Research Center (hereinafter referred to as the "GIR") under Article 36 (1) of the Framework Act conduct surveys and research for formulating a master plan. <Amended on Mar. 25, 2022; Oct. 1, 2025>

Article 3(Formulation of plans to allocate national emission allowances) #

(1) Pursuant to Article 5 of the Act, the Minister of Climate, Energy and Environment shall formulate a plan to allocate national emission permits (hereinafter referred to as "allocation plan"), in consideration of consistency with a national medium- and long-term greenhouse gas reduction target (hereinafter referred to as "mid-to long-term reduction targets") under Article 8 (1) of the Framework Act. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(2) Where the Minister of Climate, Energy and Environment formulates or modifies an allocation plan under Article 5 (1) and (3) of the Act, the Minister shall consult with the heads of relevant central administrative agencies and refer such plan to the Emission Permits Allocation Committee (hereinafter referred to as the "Allocation Committee") under Article 6 of the Act for deliberation and coordination. <Amended on Oct. 1, 2025>

(3) The Minister of Climate, Energy and Environment may request relevant data from the head of a relevant central administrative agency if necessary for formulating or modifying allocation plans, and the head of the agency, upon receipt of such request, shall render cooperation, unless there is a compelling reason not to do so. <Amended on Oct. 1, 2025>

(4) "Matters prescribed by Presidential Decree" in Article 5 (1) 11 of the Act means the following: <Amended on Dec. 19, 2025>

1. Matters regarding the classification of sectors and business types eligible for allocation of emission permits;

2. Matters regarding the additional allocation of emission permits under Article 16 of the Act;

3. Matters regarding the revocation of emission permits allocated or additionally allocated under Article 17 of the Act;

4. Matters regarding the ratio of emission permits gratuitously allocated after the third commitment period under Article 18 (3);

5. Matters regarding limits on the number of offset emission permits that can be surrendered under Article 47(3);

6. Matters necessary to facilitate the trading of emission permits such as the number of emission permits carried over to the following commitment period, which affect the standards for the allocation of emission permits under Article 5(1)4 and 5 of the Act;

7. Other matters necessary for allocating and trading emission permits during the pertinent commitment period, on which a resolution was passed by the Allocation Committee.

(5) The Minister of Climate, Energy and Environment may modify an allocation plan in any of the following cases. <Amended on Oct. 1, 2025>

1. Where a significant reason arises to modify an allocation plan due to a sudden change in domestic or international economic conditions, technological advancement, and unexpected fluctuations in domestic power demand;

2. Where it is necessary to modify an allocation plan according to the outcomes of international negotiations on climate change.

(6) Where the Minister of Climate, Energy and Environment formulates or modifies an allocation plan (excluding matters under paragraph (7)), the Minister shall gather opinions under Article 5 (4), consult with the heads of relevant central administrative agencies under paragraph (2), and refer the relevant matter to the Allocation Committee for deliberation and coordination, and eventually to the Carbon Neutrality Committee and the State Council for deliberation, pursuant to the main clause of Article 5 (5) of the Act. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(7) "Minor matters prescribed by Presidential Decree" in the proviso of Article 5(5) of the Act means any of the following:

1. Matters regarding the carryover and borrowing of emission permits, and the guidelines for offset and the operation thereof under Article 5(1)10 of the Act;

2. Matters on which a resolution was passed by the Allocation Committee pursuant to paragraph (4)7.

(8) The Minister of Climate, Energy and Environment shall publicly announce an allocation plan finalized under Article 5 (5) of the Act in the Official Gazette, on the website of the Ministry of Climate, Energy and Environment, etc. <Amended on Oct. 1, 2025>

(9) The Minister of Climate, Energy and Environment may have the Greenhouse Gas Inventory and Research Center conduct surveys and research for formulating an allocation plan. <Amended on Oct. 1, 2025>

Article 4(Organization and operation of Allocation Committee) #

(1) "Relevant central administrative agencies prescribed by Presidential Decree" in Article 7(2)1 of the Act means the Ministry of Foreign Affairs, the Ministry of the Interior and Safety, the Ministry of Oceans and Fisheries, and the Korea Forest Service.

(2) Members of the Allocation Committee under Article 7(2)2 of the Act shall be commissioned by the Minister of Economy and Finance upon the recommendation of the heads of relevant central administrative agencies.

(3) The secretary member of the Allocation Committee established under Article 7 (5) of the Act (hereinafter referred to as "secretary member") shall be the Vice Minister of Climate, Energy and Environment (referring to the Vice Minister designated by the Minister of Climate, Energy and Environment). <Amended on Oct. 1, 2025>

(4) The secretary of the Allocation Committee shall handle the following administrative affairs under the command of the chairperson of the Allocation Committee:

1. Preparation of agenda items to be deliberated upon by the Allocation Committee (including preparation of a review report);

2. Consultation with the heads of relevant central administrative agencies on agenda items to be deliberated upon and collection of the opinions of relevant experts, etc.;

3. Other matters regarding preparation for meetings of the Allocation Committee.

Article 5(Exclusion of, challenge to, or recusal of, members of Allocation Committee) #

(1) Where any member of the Allocation Committee (including the chairperson of the Allocation Committee; hereafter in this Article the same shall apply) falls under any of the following cases, such member shall be excluded from deliberation and coordination by the Allocation Committee:

1. Where the member or his or her current or former spouse becomes a party to the agenda item (if the party is a corporation, organization, etc., referring to the executive officer of such corporation, organization, etc.; hereafter in this subparagraph and subparagraph 2 the same shall apply) or where the member shares certain rights and obligations with the party to the agenda item;

2. Where the member is or was a relative of the party to the relevant agenda item;

3. Where the member gives testimony, makes statements, provides advice, conducts research, or provides services or appraisals on the relevant agenda item;

4. Where the member or a corporation to which the member belongs is a current or former agent of the party to the relevant agenda item.

(2) If the grounds for exclusion under paragraph (1) exists, or if the circumstances indicate that it would be impracticable to expect fair deliberations and coordination from a member of the Allocation Committee, any party may file a request for a challenge to the member with the Allocation Committee, and the Allocation Committee shall determine whether to accept the request by resolution. In such cases, the member against whom a request for challenge is filed shall not participate in such resolution.

(3) Where the grounds for exclusion specified in any subparagraph of paragraph (1) apply to a member of the Allocation Committee, he or she shall recuse himself or herself from deliberation and coordination on the relevant agenda item.

Article 6(Dismissal of members of Allocation Committee) #

Where a member of the Allocation Committee under Article 7(2)2 of the Act falls under any of the following, the Minister of Economy and Finance may dismiss the relevant member:

1. Where the member becomes incapable of performing his or her duties due to a mental or physical disability;

2. Where the member engages in misconduct in connection with his or her duties;

3. Where the member is deemed unsuitable to serve as a member of the Allocation Committee due to neglect of duty, loss of dignity, or for other similar reasons;

4. Where the member voluntarily admits that it is difficult to perform his or her duties;

5. Where the member fails to recuse himself or herself, despite falling under any subparagraph of Article 5(1).

Article 7(Meetings of Allocation Committee) #

(1) Meetings of the Allocation Committee shall be held where deemed necessary by the chairperson of the Allocation Committee or at the request of at least 1/3 of all incumbent members.

(2) A majority of the members of the Allocation Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.

(3) If necessary, the chairperson of the Allocation Committee may require the public officials of relevant central administrative agencies or experts in the relevant field to attend the meetings and express their opinions.

(4) Except as provided in Articles 4 and 5, and paragraphs (1) through (3) of this Article, detailed matters necessary for the operation of the Allocation Committee shall be determined by the chairperson of the Allocation Committee by resolution thereof.

Article 8(Organization and operation of consultative body on emissions trading system) #

(1) The Minister of Climate, Energy and Environment shall organize and operate a consultative body on the emissions trading system in order to consult on the following matters: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Matters regarding the formulation of a master plan, etc.;

2. Matters regarding the formulation of an allocation plan, etc.;

3. Detailed matters regarding the methods, etc. for calculating the number of emission permits to be allocated under Article 17(2);

4. Detailed matters regarding the procedures for submitting and examining an application for allocation under Article 20(4), and the verification of activity data;

5. Matters regarding additional allocation under Article 26;

6. Detailed matters regarding the additional allocation of emission permits under Article 28(8);

7. Detailed matters regarding the revocation of emission permits allocated under Article 29(14);

8. Detailed matters regarding the standards, procedures, etc. for certifying emissions under Article 42(5);

9. Detailed matters regarding the standards and procedures for the approval and revocation of approval of external projects under Article 48(8);

10. Detailed matters regarding the certification of greenhouse gas reductions from an external project and the revocation of the certification under Article 49(8);

11. Other matters on which the opinions of the relevant central administrative agencies are deemed necessary by the Minister of Climate, Energy and Environment.

(2) The chairperson of the consultative body on the emissions trading system prescribed in paragraph (1) shall be appointed by the Minister of Climate, Energy and Environment from among members of the Senior Executive Service belonging to the Ministry of Climate, Energy and Environment, and its members shall be appointed by the head of the relevant agency from among public officials of Grade IV or higher belonging to any of the following relevant central administrative agencies: <Amended on Oct. 1, 2025>

1. The Ministry of Economy and Finance;

2. The Ministry of Agriculture, Food and Rural Affairs;

3. The Ministry of Trade,Industry and Resources;

4. Ministry of Climate, Energy and Environment;

5. The Ministry of Land, Infrastructure and Transport;

6. The Office for Government Policy Coordination;

7. Other relevant central administrative agencies deemed necessary by the Minister of Climate, Energy and Environment.

Article 9(Designation of business entities eligible for allocation) #

(1) The competent authorities under Articles 8, 8-2, 9, 11 through 14, 16 through 18, 20 through 22, 22-2 through 22-4, 23, 24, 24-2 through 24-4, 25 through 31, 33, 34, 36, 37, 37-2, 38, 40, and 43 of the Act shall be the following agencies: <Amended on Mar. 25, 2022; Feb. 7, 2025; Oct. 1, 2025; Dec. 19, 2025>

1. The following matters: the Minister of Climate, Energy and Environment:

a. Designation of and revocation of designation of business entities eligible for allocation under Articles 8 and 9 of the Act;

b. Succession to rights and obligations of business entities eligible for allocation under Article 8-2 of the Act;

c. Management and operation of a register for the trading of emission permits under Article 11 of the Act (hereinafter referred to as "emission permits register");

d. Receipt of applications for allocation of emission permits and plans for calculating greenhouse gas emissions, allocation and notification of emission permits, and registration of details of such allocation under Articles 12 through 14 of the Act;

e. Additional allocation of emission permits under Article 16 of the Act;

f. Revocation of all or some of emission permits allocated under Article 17 of the Act;

g. Holding of emission permits in reserve under Article 18 of the Act;

h. Determining the maximum quantity of emission permits that can be held in the emissions trading accounts under Article 20(2) of the Act;

i. Acceptance of reports on the trading of emission permits and registration of the details of the trading of emission permits under Article 21 of the Act;

j. Designation, establishment, and operation of emission permits exchanges, approval of operational regulations for emission permits exchanges, revocation of designation of emission permits exchanges, warnings to emission permits exchanges, measures to suspend business of emission permits exchanges, change of opening hours of emission permits exchanges, suspension of trading or orders to temporarily close down markets under Article 22 of the Act;

k. Designation, and revocation of the designation, of a maker of emissions trading markets, and receipt and evaluation of the performance of market-making activities, requests for corrective measures, and transfer or revocation of emission permits under Article 22-2 of the Act;

l. Registration of emissions trading brokerage companies, suspension of business, or revocation of registration, orders to dispose of emission permits, transfer and revocation of emission permits, and receipt of reports under Article 22-3 of the Act;

m. Management and supervision, order to submit data and report, and request for cooperation under Article 22-4 of the Act;

n. Measures to stabilize emissions trading markets under Article 23 of the Act;

o. Receipt of a statement on greenhouse gas emissions under Article 24(1) of the Act and issuance of an order to make corrections or supplementations under Article 24(2) of the Act;

p. Designation of an independent, specialized verification institution (hereinafter referred to as "verification institution"), issuance of orders to revoke such designation, to suspend work and to take corrective measures, acceptance of reports, and the receipt, evaluation, and disclosure of the results of verification under Article 24-2 of the Act;

q. Issuance of qualification certificates for verification examiners, and revocation or suspension of their qualification under Article 24-3 of the Act;

r. Permission to establish the Korea Verification Association of Greenhouse Gas and order to make amendments to its articles of incorporation or to make amendments to its business plan under Article 24-4 of the Act;

s. Certification of actual greenhouse gas emissions and the establishment and operation of electronic processing system for conformity assessments, and notification and registration of results of certification of actual greenhouse gas emissions under Article 25 of the Act;

t. Establishment and operation of the Emissions Certification Committee under Article 26 of the Act;

u. Receipt and registration of emission permits surrendered under Article 27 of the Act;

v. Approval and registration of carryover or borrowing of emission permits under Article 28 of the Act;

w. Receipt of applications for the conversion of emission permits, conversion of emission permits and registration of details thereof in an emission permits offset register under Article 29 of the Act;

x. Management and operation of an emission permits offset register under Article 31 of the Act (hereinafter referred to as "offset register");

y. Imposition and collection of penalty surcharges, collection of additional charges, demand for the payment thereof, and disposition of defaulted penalty surcharges under Articles 33 and 34 of the Act;

z. Designation, establishment, or operation of an institution specializing in trading emission permits under Article 36(2) of the Act;

aa. Fact-finding surveys under Article 37 of the Act (excluding subparagraph 7);

ab. Hearings under Article 37-2 of the Act;

ac. Receipt of objections and notification of the results thereof under Article 38 of the Act;

ad. Delegation or entrustment of authority under Article 40 of the Act (limited to the matters under items a through y, and aa);

ae. Imposition and collection of administrative fines under Article 43 of the Act;

2. The following matters: the competent agency by sector [referring to the heads of the relevant central administrative agencies determined by sector pursuant to Article 18(1) of the Enforcement Decree of the Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis (hereinafter referred to as the "Enforcement Decree of the Framework Act"); hereinafter the same shall apply]:

a. Receipt of applications for the certification of greenhouse gas reductions from an external project, certification, and registration of the offset register under Article 30 of the Act;

b. Fact-finding surveys under subparagraph 7 of Article 37 of the Act;

c. Delegation or entrustment of authority under Article 40 of the Act (limited to the matter under item a).

(2) The latest three years under the provisions, with the exception of the items, of Article 8(1)1 of the Act, shall be the period of three years out of the period of four years prior to the beginning of each commitment period (hereinafter referred to as "base period"); provided, the period of the immediately preceding three years during which a business entity eligible for the allocation of emission permits (hereinafter referred to as "enterprise eligible for allocation") is designated and publicly notified (hereinafter referred to as "base period for new entrant") shall apply to a business entity under Article 9(1) of the Act (hereinafter referred to as "new entrant").

(3) The Minister of Climate, Energy and Environment shall designate any of the following business entities as a business entity eligible for allocation and publicly notify such designation no later than 5 months prior to the beginning of each commitment period and notify the relevant business entity and the competent agency by sector of the details thereof: <Amended on Mar. 25, 2022; Oct. 1, 2025>

1. A business entity under Article 8(1)1 of the Act (in cases of a controlled entity under item b of that subparagraph, limited to a business entity which has submitted a statement under Article 27 of the Framework Act at least once);

2. A business entity under Article 8(1)2 of the Act (hereinafter referred to as "voluntary participant").

(4) "Business entities meeting the standards prescribed by Presidential Decree" in Article 8(1)2 of the Act means a business entity meeting all the following requirements: <Amended on Mar. 25, 2022; Feb. 7, 2025>

1. The average yearly total greenhouse gas emissions for the immediately preceding 3 years as of the date of filing an application under Article 8(1)2 of the Act shall be not less than 3,000 tons of carbon dioxide equivalent (tco2-eq);

2. The business entity shall have data on greenhouse gas emissions and the activity data referred to in Article 17(1)6 for the immediately preceding 3 years from the date of filing an application under Article 8(1)2 of the Act, and shall have the relevant data verified by a verification institution under Article 24-2 of the Act;

3. The business entity shall not have received an order for improvement under the former part of Article 27(6) of the Framework Act or administrative fines under Article 83(1) of that Act;

4. The business entity shall not have been allocated or additionally allocated emission permits by applying for the allocation or additional allocation of emission permits by fraud or other improper means.

(5) A voluntary participant shall prepare an application for voluntary participation no later than 6 months prior to the beginning of each commitment period and shall submit such application to the Minister of Climate, Energy and Environment in electronic form (referring to the use of the National Greenhouse Management System under Article 36 of the Framework Act; hereinafter the same shall apply). <Amended on Mar. 25, 2022; Oct. 1, 2025>

(6) Where the Minister of Climate, Energy and Environment accepts an objection to the designation of a business entity eligible for allocation filed under Article 38 (1) 1 of the Act, the Minister shall publicly notify any modifications no later than 3 months (referring to two years prior to the beginning of each commitment period, in cases of the extension of a period pursuant to the proviso of paragraph (2) of that Article) prior to the beginning of each commitment period (referring to a compliance year, in cases of an objection against the designation of new entrants as business entities eligible for allocation). <Amended on Oct. 1, 2025>

(7) A voluntary participant that does not want to be designated as a business entity eligible for allocation during the following commitment period shall file an application for voluntary withdrawal of participation with the Minister of Climate, Energy and Environment by electronic means no later than 6 months prior to the beginning of the following commitment period. <Amended on Oct. 1, 2025>

(8) Where the Minister of Climate, Energy and Environment fails to designate business entity eligible for allocation as the ones for the following commitment period, the Minister shall immediately close the relevant business entity's emissions trading account registered in the emission permits register when the deadline for surrendering emission permits under Article 27 (1) of the Act expires for the final compliance year of the pertinent commitment period. <Amended on Oct. 1, 2025>

(9) Except as provided in paragraphs (2) through (8), the details of the designation of business entities eligible for allocation shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 10(Revocation of designation of business entities eligible for allocation) #

(1) "Cases prescribed by Presidential Decree" in Article 8(2)3 of the Act means any of the following:

1. Where the voluntary participant has been designated as a business entity eligible for allocation by fraud or other improper means, despite its failure to meet any of the requirements provided in the subparagraphs of Article 9(4);

2. Where it is obvious that the business entity cannot continue its business during a commitment period due to bankruptcy, revocation of business license, etc.

(2) Upon revoking the designation of a business entity eligible for allocation under Article 8 (2) of the Act, the Minister of Climate, Energy and Environment shall publicly notify the details of such revocation without delay, and notify the relevant business entity and the competent agency by sector thereof. <Amended on Oct. 1, 2025>

(3) Upon receipt of notice that designation as a business entity eligible for allocation has been revoked under paragraph (2), the business entity shall report to the Minister of Climate, Energy and Environment a statement under Article 24 (1) of the Act for years until the year immediately preceding the one in which the designation has been revoked, and shall surrender emission permits certified under Article 25 of the Act pursuant to Article 27 (1) of the Act. <Amended on Oct. 1, 2025>

(4) The Minister of Climate, Energy and Environment shall revoke emission permits allocated under Article 17 (1) 5 of the Act to a business entity whose designation as a business entity eligible for allocation is revoked under paragraph (2), and shall immediately close the relevant business entity's emissions trading account registered in the emission permits register when the deadline for surrendering emission permits under Article 27 (1) of the Act expires for the year immediately preceding the year in which the designation has been revoked. <Amended on Oct. 1, 2025>

(5) Except as provided in paragraphs (1) through (4), detailed matters regarding the revocation of designation as business entities eligible for allocation shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 11(Succession to rights and obligations of business entities eligible for allocation) #

(1) A business entity eligible for allocation that transferred rights and obligations shall report the transfer of and succession to rights and obligations to the Minister of Climate, Energy and Environment by electronic means under Article 8-2 (2) of the Act. <Amended on Oct. 1, 2025>

(2) Where changes are made to business entities eligible for allocation designated and publicly notified under Article 8 (1) or 9 (1) of the Act as the rights and obligations of the business entities eligible for allocation are succeeded under the main clause of Article 8-2 (1) of the Act, the Minister of Climate, Energy and Environment shall publicly notify details of such changes within one month from the date the Minister receives a report on such fact under Article 8-2 (2) of the Act or becomes aware thereof under paragraph (4) of that Article, and shall notify the relevant business entities eligible for allocation and the competent agency by sector of the same without delay. <Amended on Oct. 1, 2025>

(3) Where the Minister of Climate, Energy and Environment takes measures to transfer emission permits under Article 8-2 (3) and (4) of the Act, the Minister shall notify the relevant business entity eligible for allocation of the results of transferring such emission permits within one month from the date the relevant fact is reported to the Minister or he or she becomes aware of such fact under paragraph (2) or (4) of that Article. <Amended on Oct. 1, 2025>

(4) Except as provided in paragraphs (1) through (3), detailed matters regarding the succession to the rights and obligations of business entities eligible for allocation shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 12(Designation and public notice of new entrants as business entities eligible for allocation) #

(1) The Minister of Climate, Energy and Environment shall designate a new entrant that has submitted a statement verified by a verification institution under Article 27 (3) of the Framework Act more than once as a business entity eligible for allocation under Article 9 of the Act, and shall publicly notify such designation no later than 5 months prior to the beginning of each compliance year. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(2) Except as provided in paragraphs (1), the details of the designation of new entrants as business entities eligible for allocation shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 13(Notification of designation and public notice of business entities eligible for allocation) #

(1) Where the Minister of Climate, Energy and Environment designates and publicly notifies a business entity eligible for allocation pursuant to Articles 9 and 12, or does not re-designate such business entity as a business entity eligible for allocation for the following commitment period, the Minister shall notify the relevant business entity and the competent agency by sector of such fact without delay. <Amended on Oct. 1, 2025>

(2) A business entity designated and publicly notified as a business entity eligible for allocation shall submit its performance in attaining the targets under Article 27(1) of the Framework Act to the competent agency by sector and the statement under paragraph (3) of that Article not later than March 31 of the year following the year in which it is designated as such pursuant to Article 21 of the Enforcement Decree of the Framework Act. <Amended on Mar. 25, 2022>

(3) Except as provided in paragraphs (1) and (2), detailed matters regarding the designation and public notice of designation as business entities eligible for allocation shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 14(Management and operation of emission permits register) #

(1) Any of the following persons may request that the Minister of Climate, Energy and Environment allow him or her to peruse the information registered in the emission permits register and the Minister of Climate, Energy and Environment shall comply therewith, unless there is a compelling reason not to do so: <Amended on Mar. 25, 2022; Oct. 1, 2025>

1. The head of the relevant central administrative agency under Article 7(2)1 of the Act (only if necessary for formulating policies for greenhouse gas reductions and for managing targets under Articles 8, 26, and 27 of the Framework Act);

2. The head of an emission permits exchange under Article 22 of the Act.

(2) "Matters prescribed by Presidential Decree" in Article 11(3)5 of the Act means the following: <Amended on Dec. 19, 2025>

1. Emission permits transferred or revoked under Article 8-2(3) and (4) of the Act;

2. Number of emission permits allocated under Article 12 of the Act;

3. Additional allocation of emission permits under Article 16 of the Act;

4. Emission permits revoked under Article 17 of the Act;

5. Emission permits transferred under Article 21 of the Act;

6. Number of emission permits surrendered under Article 27 of the Act;

7. Emission permits carried over and borrowed under Article 28 of the Act;

8. Emission permits registered in the offset register (hereinafter referred to as "offset emission permits");

9. A plan for calculating greenhouse gas emissions submitted under Article 21 and a verification report prepared by a verification institution;

10. A statement submitted pursuant to Article 39 and a verification report prepared by a verification institution.

(3) "Registered facts prescribed by Presidential Decree, such as the number of emission permits" in Article 11 (5) of the Act means the following: <Amended on Oct. 1, 2025>

1. Matters under Article 11(3)1,2, and 4 of the Act;

2. Matters under the subparagraphs of paragraph (2);

3. Sum of emission permits held, calculated taking into account the matters referred to in the subparagraphs of paragraph (2);

4. Other matters determined and publicly notified by the Minister of Climate, Energy and Environment regarding the management and operation of the emission permits register referred to in Article 16 (3).

Article 15(Disclosure of matters registered in emission permits register) #

The following matters among the information registered in the emission permits register shall be disclosed:

1. Matters under Articles 11(3) 1 and 4 of the Act;

2. Matters under the subparagraphs of Article 14(2) (excluding subparagraphs 5, 6, 9, and 10).

Article 16(Modification of matters registered in emission permits register) #

(1) Where any error or mistake is found in any matter registered in the emission permits register, the Minister of Climate, Energy and Environment may modify such registered matter, ex officio or upon the request of a person who has registered his or her emissions trading account under Article 20 of the Act. <Amended on Oct. 1, 2025>

(2) Where the Minister of Climate, Energy and Environment modifies any registered matter pursuant to paragraph (1), the Minister shall give notice thereof to the person who has registered his or her emissions trading account. <Amended on Oct. 1, 2025>

(3) Except as provided in Articles 14 and 15, and paragraph (1) and (2) of this Article, detailed matters regarding the management and operation of the emission permits register, including matters registered in the emission permits register, the protection of trade secrets of enterprises, and fees under subparagraph 1 of Article 39 of the Act shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 17(Standards for allocation of emission permits) #

(1) Pursuant to Article 12(2) of the Act, the Minister of Climate, Energy and Environment shall determine the number of emission permits to be allocated to each business entity eligible for allocation, in consideration of the matters under the subparagraphs of that paragraph and the following matters: <Amended on Mar. 25, 2022, Feb. 7, 2025, Oct. 1, 2025>

1. Matters regarding the allocation of emission permits determined in the relevant allocation plan under Article 5(1)3 through 7, and 7-2 of the Act and Article 3(4)1, 4, 6, and 7 of this Decree;

2. Mid-to long-term reduction targets and sectoral greenhouse gas reduction targets under Article 8(2) of the Framework Act (hereinafter referred to as "sectoral reduction target");

3. Ratio of emission permits allocated gratuitously under Article 18 (hereinafter referred to as "free allocation ratio");

4. Past greenhouse gas emissions of the relevant business entity eligible for allocation;

5. Increase or decrease in greenhouse gas emissions caused by changes in places of business or facilities of the relevant business entity eligible for allocation during the base period (in cases of a business entity eligible for allocation which is a new entrant, referring to the base period for a new entrant);

6. Results of evaluating the data on greenhouse gas emissions, etc. per unit activity data, such as production or outsourcing volumes, or heat or fuel consumption (hereinafter referred to as "activity data") by comparing such data with the data gathered from the domestic places of business, facilities or processes of the same type (hereinafter referred to as "benchmark").

(2) Detailed matters regarding the methods, etc. for calculating the number of emission permits allocated under paragraph (1) when determining the number of such emission permits shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 18(Free allocation ratios of emission permits) #

(1) All emission permits allocated to each business entity eligible for allocation shall be allocated gratuitously during the first commitment period (hereinafter referred to as "first commitment period") under Article 2(1) of the Addenda to the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits (Act No. 11419) (hereinafter referred to as the "Enacted Act"). <Amended on Dec. 19, 2025>

(2) 97/100 of all emission permits allocated to each business entity eligible for allocation shall be allocated gratuitously during the second commitment period (hereinafter referred to as "second commitment period") under Article 2 (1) of the Addenda to the Enacted Act. <Amended on Dec. 19, 2025>

(3) An allocation plan shall include the free allocation ratio determined not to exceed 90/100 after the third commitment period (referring to the third commitment period after the enforcement of the Enacted Act), in consideration of international trends, the assessment, etc. of reductions achieved during the previous commitment periods. In such cases, no free allocation ratio shall exceed the free allocation ratio in the immediately preceding commitment period. <Amended on Dec. 19, 2025>

(4) Emission permits allocated to business entities eligible for allocation during a commitment period under Article 12(3) of the Act shall be sold there by means of auction.

(5) The details of the paid allocation of emission permits, such as the time and place of auction under paragraph (4) shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 19(Standards for business types and business entities eligible for free allocation) #

(1) "Business types meeting the standards prescribed by Presidential Decree" in Article 12(5)1 of the Act means a type of business determined under the relevant allocation plan, in which the value obtained by multiplying the carbon intensity by the trade intensity under Appendix 1 is at least 2/1000. <Amended on Feb. 7, 2025; Dec. 19, 2025>

(2) In Article 12(5)2 of the Act, the phrase "cases prescribed by Presidential Decree" means any of the following cases eligible for allocation: <Amended on Mar. 23, 2021; Feb. 25, 2025; Dec. 19, 2025>

1. A place of business under the control of a local government;

2. A school under Article 2 of the Elementary and Secondary Education Act and Article 2 of the Higher Education Act;

3. A medical institution under Article 3(2) of the Medical Service Act;

4. A place of business of a public transportation operator under subparagraph 4 of Article 2 of the Act on the Support and Promotion of Utilization of Mass Transit System;

5. Facilities for supply under subparagraph 6 of article 2 of the Integrated Energy Supply Act (limited to facilities for supply of industrial complex integrated energy business under Article 2(1)2 of the Enforcement Decree of that Act) that are allocated emission allowances by the emission efficiency standard method for the volume of heat supply (limited to the fourth commitment period after the enforcement of the Enacted Act);

Article 20(Submission of applications for allocation of emission permits) #

(1) A business entity eligible for allocation shall prepare an application for the allocation of emission permits under Article 13(1) of the Act (hereinafter referred to as "application for allocation") as per the following unit and submit such application to the Minister of Climate, Energy and Environment by electronic means: <Amended on Oct. 1, 2025>

1. Each business entity eligible for allocation, including its all places of business;

2. Each place of business which belongs to a business entity eligible for allocation.

(2) A business entity eligible for allocation to whom the benchmark applies shall submit an application for allocation accompanied by greenhouse gas emissions and activity data as per the following unit verified by a verification institution (excluding where greenhouse gas emissions and activity data are included in a statement under Article 39(1), already verified and reported) to the Minister of Climate, Energy and Environment by electronic means: <Amended on Oct. 1, 2025>

1. Each production item or outsourcing service produced or provided at a place of business that belongs to a business entity eligible for allocation;

2. Each facility, process, raw material, or fuel used at a place of business that belongs to a business entity eligible for allocation to produce or provide production items or outsourcing services referred to in subparagraph 1;

3. Each greenhouse gas emission activity in a facility or process undertaken at a place of business that belongs to a business entity eligible for allocation to produce or provide production items or outsourcing services referred to in subparagraph 1.

(3) "Methods prescribed by Presidential Decree" in Article 13(1)1 of the Act means the methods for calculating the number of emission permits to be allocated, which are determined and publicly notified by the Minister of Climate, Energy and Environment under Article 17(2) when determining the number of such emission permits. <Amended on Oct. 1, 2025>

(4) Detailed matters regarding procedures for submitting and examining applications for allocation, verification of activity data, etc. under paragraphs (1) and (2) shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 21(Submission and verification of plan for calculating greenhouse gas emissions) #

(1) A business entity eligible for allocation shall submit a plan for calculating greenhouse gas emissions under Article 13(2) of the Act (hereinafter referred to as "plan for calculating emissions") to the Minister of Climate, Energy and Environment by electronic means, accompanied by a verification report prepared by a verification institution. <Amended on Oct. 1, 2025>

(2) In any of the following cases, the Minister of Climate, Energy and Environment may issue an order for correction or supplementation to the relevant business entity eligible for allocation or the verification institution: <Amended on Oct. 1, 2025>

1. Where there is a defect or omission in the plan for calculating emissions or in the verification report submitted under paragraph (1);

2. Where the results of reviewing the statement submitted by the business entity eligible for allocation pursuant to Article 39 and the corresponding verification report indicate that inadequate information is contained in the plan for calculating emissions or the verification report.

(3) Where the Minister of Environment issues an order for correction or supplementation pursuant to paragraph (2), the relevant business entity eligible for allocation or the verification institution shall correct or supplement the plan for calculating emissions or the verification report, and submit such plan or report to the Minister of Climate, Energy and Environment by electronic means within 15 days. <Amended on Oct. 1, 2025>

(4) Where the details of the plan for calculating emissions submitted are modified, a business entity eligible for allocation shall modify and submit the plan no later than two months prior to the end of the pertinent compliance year. In such cases, paragraphs (1) through (3) shall apply mutatis mutandis.

(5) Except as provided in paragraphs (1) through (4), detailed matters regarding the submission and verification of a plan for calculating emissions shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 22(Determination of number of emission permits allocated to each business entity eligible for allocation) #

(1) The Minister of Climate, Energy and Environment shall determine the allocation of emission allowances for business entity eligible for allocation no later than 2 months before the start of the planning period (in the case of a business entity eligible for allocation that is a new entrant, the implementation year for which emission allowances are allocated) after deliberation and adjustment by the Allocation Committee under Article 23 (1). <Amended Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment shall report to the Allocation Committee on the number of emission permits to be allocated to each business entity eligible for allocation, which is determined under paragraph (1). <Amended on Oct. 1, 2025>

Article 23(Deliberative committee on allocation determination) #

(1) A deliberative committee on allocation determination (hereinafter referred to as "deliberative committee on allocation determination") shall be established in the Ministry of Climate, Energy and Environment to deliberate on and coordinate the following matters: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Emission permits allocated to each business entity eligible for allocation under Article 22(1);

2. Additional allocation of emission permits, resulting from modifications to an allocation plan under Article 26(1);

3. Additional allocation of emission permits under Article 28(2) and (3);

4. Revocation of the allocation of emission permits under Article 29(1) through (7).

(2) The deliberative committee on allocation determination shall consist of no more than 16 members, including one chairperson.

(3) The Chairperson of the Allocation Committee (referring to the Vice Minister designated by the Minister of Climate, Energy and Environment) shall be the Vice Minister of Climate, Energy and Environment (referring to the Vice Minister designated by the Minister of Climate, Energy and Environment), and its members shall be the following persons. <Amended on Oct. 1, 2025>

1. Senior executives appointed by the head of the relevant agency, from among those who belong to the Ministry of Economy and Finance, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade, Industry and Resources, the Ministry of Climate, Energy and Environment, the Ministry of Land, Infrastructure and Transport, the Office for Government Policy Coordination, and other relevant central administrative agencies deemed necessary by the Minister of Climate, Energy and Environment;

2. Persons commissioned by the Minister of Climate, Energy and Environment upon the recommendation of the heads of the central administrative agencies prescribed in subparagraph 1, from among those who have extensive knowledge of and experience in climate change, carbon markets, greenhouse gas reductions, and other similar fields.

(4) Each member commissioned under paragraph (3)2 shall hold office for a term of two years and may be commissioned consecutively only once.

(5) Articles 5 and 6 shall apply mutatis mutandis to exclusion of, challenge to, and recusal and dismissal of members of the deliberative committee on allocation determination. In such cases, "Allocation Committee" shall be construed as "deliberative committee on allocation determination"; "Minister of Economy and Finance" as "Minister of Climate, Energy and Environment"; and "Article 7(2)2 of the Act" as "Article 23(3)2". <Amended on Oct. 1, 2025>

(6) Article 7(1) through (3) shall apply mutatis mutandis a meeting of the deliberative committee on allocation determination, its opening and resolution, and hearing of opinions therein. In such cases, "Allocation Committee" shall be construed as "deliberative committee on allocation determination."

(7) Except as provided in paragraphs (4) through (6), detailed matters regarding the operation of the deliberative committee on allocation determination shall be determined by the chairperson thereof after a resolution by the committee.

Article 24(Notification of number of emission permits allocated to each business entity eligible for allocation) #

Pursuant to Article 14(1) of the Act, the Minister of Climate, Energy and Environment shall without delay register emission permits allocated for free in the emissions trading account of the relevant business entity by indicating the pertinent compliance year in which such emission permits are allocated, among the number of emission permits allocated to each business entity eligible for allocation determined following deliberation and coordination under Article 22(1) of the Enforcement Decree, and shall register the emission permits that are sold under Article 18(4) in the emissions trading account of the relevant business entity by indicating the pertinent compliance year in which such emission permits are allocated by means of auction. <Amended on Oct. 1, 2025>

Article 25 #

Deleted. <Dec. 19, 2025>

Article 26(Additional allocation resulting from modifications to allocation plan) #

(1) Where the total greenhouse gas emission allowances under Article 5(1)1 of the Act (hereinafter referred to as "total emission allowances") increase following a modification to an allocation plan under Article 16(1)1 of the Act, the Minister of Climate, Energy and Environment may additionally allocate emission permits equivalent to the total emission allowances so increased to all business entities eligible for allocation in proportion to the respective existing allocations or additionally allocate all or some of the increased number of emission permits to a specific sector or business type. <Amended on Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment shall determine additional allocations under paragraph (1) in consultation with the competent agency by sector and through deliberation and coordination by the deliberative committee on allocation determination. <Amended on Oct. 1, 2025>

Article 27(Additional allocation of emission permits upon application) #

(1) "Where greenhouse gas emissions from the relevant compliance year increases above the standards prescribed by Presidential Decree" in Article 16(1)3 of the Act means any of the following cases: <Amended on Feb. 7, 2025>

1. In cases of new construction or extension of facilities in a place of business: Where greenhouse gas emissions (referring to the quantity calculated based on the activity data, if the emission efficiency standard method is applied, if the relevant place of business is subject to the application of the emission efficiency standard method; hereafter the same shall apply in this Article and Articles 28(2) and 29) of the relevant place of business in the relevant compliance year is at least 100/100 of the quantity of emission permits allocated to the relevant place of business in the relevant compliance year;

2. Increase in the operational performance of facilities in the place of business: Where the greenhouse gas emissions from the relevant place of business during the relevant compliance year compared to the quantity of emission permits allocated to the relevant place of business is at least 115/100.

(2) "Cases prescribed by Presidential Decree" in Article 16(1)4 of the Act means where the number of emission permits allocated to the relevant business entity eligible for allocation increases as a result of recalculating the number of emission permits allocated for the relevant compliance year in accordance with the results of administrative appeals, administrative litigations, and other lawsuits. <Added on Feb. 7, 2025>

(3) In Article 16(1)5 of the Act, the phrase "cases prescribed by Presidential Decree" means any of the following cases. <Amended on Mar. 25, 2022; Feb. 7, 2025; Oct. 1, 2025>

1. Where the volume of electricity generated during the pertinent compliance year increases above the annual average volume of electricity generated during the relevant base period (in cases of power facilities newly constructed during the base period, referring to the annual average from the year such facilities are newly constructed), as a business entity eligible for allocation, due to restrictions in operating the electric power system (referring to a power generator failure, failure in electric power transmission lines, restrictions in heat supply, fuel and electric transmission, excluding cases in which such restrictions are attributable to the business entity), follows an instruction from the Korea Power Exchange, which is different from the order of priority determined in the electricity market pursuant to Article 45(2) of the Electric Utility Act;

2. Where the volume of heat supply (excluding the volume of heat supply between the places of business or the volume of heat supply between integrated energy business entities, the supply of which is not obligatory; hereafter in this subparagraph, the same shall apply) during the pertinent compliance year increases above the annual average volume of heat supply during the relevant base period (in cases of places of business newly constructed during the base period, referring to the annual average from the year such places of business are newly constructed), as a business entity eligible for allocation, which is also a business entity under subparagraph 3 of Article 2 of the Integrated Energy Supply Act (hereinafter referred to as "integrated energy business entity") meets its obligations to supply integrated energy under Article 16(1) of that Act in its places of business;

3. Where greenhouse gas emissions generated by a business entity eligible for allocation which operates additional aircraft to meet the flight technology standards under Article 77 of the Aviation Safety Act during the pertinent compliance year increase above the annual average of greenhouse gas emissions generated during the relevant base period;

4. Where greenhouse gas emissions generated from a public sewage treatment plant under subparagraph 9 of Article 2 of the Sewerage Act (hereinafter referred to as "public sewage treatment plant") during the pertinent compliance year increase above the annual average of greenhouse gas emissions generated (in cases of plants newly constructed during the base period, referring to the annual average from the year such plants are newly constructed) during the relevant base period, as more rigorous standards for effluent water quality under Article 7 of the Sewerage Act (limited to cases in which standards for effluent water quality under other statutes do not apply to a public sewage treatment plant) applied to a public sewage treatment plant are adopted and a public sewage treatment plant improvement work (excluding the new construction and expansion of a plant) is implemented to meet reduced pollution load allocated for each final discharging outlet or unit period by the Minister of Climate, Energy and Environment, the Special Metropolitan City Mayor, a Metropolitan City Mayor, a Special Self-Governing City Mayor, and the head of a Si/Gun pursuant to any of the following provisions:

a. Article 4-5 of the Water Environment Conservation Act;

b. Article 12 of the Act on Water Management and Resident Support in the Geum River Basin;

c. Article 12 of the Act on Water Management and Resident Support in the Nakdong River Basin;

d. Article 12 of the Act on Water Management and Resident Support in the Yeongsan and Seomjin River Basins;

e. Article 8-4 of the Act on the Improvement of Water Quality and Support for Residents of the Han River Basin;

5. Where greenhouse gas emissions generated by a business entity eligible for allocation during the pertinent compliance year increase above the annual average of greenhouse gas emissions generated during the relevant base period, as any of the following policies or measures is implemented:

a. Expanded means of public transportation for the revitalization of green transport under Article 32 of the Framework Act;

b. Compliance with measures for the transportation of large heavy freight under Article 20 of the Sustainable Transportation Logistics Development Act;

6. Where greenhouse gas emissions generated during the pertinent compliance year increase above the annual average of greenhouse gas emissions during the relevant base period, as a business entity eligible for allocation uses combustible wastes as fuel, instead of fossil fuels.

Article 28(Determination of number of emission permits additionally allocated upon application) #

(1) A business entity eligible for allocation whose greenhouse gas emissions surpass the number of emission permits allocated to each business entity eligible for allocation for the pertinent compliance year on any ground under Article 16(1)2, 3, and 5 of the Act, may file an application for additional allocation of emission permits with the Minister of Climate, Energy and Environment by electronic means within three months from the end of each compliance year. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment, upon receipt of an application under paragraph (1), shall calculate the additional allocation amount by the method classified in each of the following subparagraphs, taking into account the remaining balance of emission permits in reserve held for additional allocation of emission permits pursuant to Article 18(1)1 of the Act. <Amended Feb. 7, 2025; Oct. 1, 2025>

1. Where the cases fall under Article 16(1)2, Article 16(1)3 (excluding cases corresponding to Article 27(1)2 of this Decree), and Article 16(1)5 of the Act: the additional allocation amount shall be calculated by multiplying the increased greenhouse gas emissions by the ratio calculated in the manner prescribed and publicly notified by the Minister of Climate, Energy and Environment, taking into account the mid- to long-term reduction targets and sectoral reduction targets;

2. In cases falling under Article 27(1)2 of this Decree: the additional allocation amount shall be calculated by multiplying the number as classified as follows by the ratio calculated in the manner prescribed and publicly notified by the Minister of Climate, Energy and Environment, taking into account the mid- to long-term reduction targets and sectoral reduction targets;

a. Where the quantity of greenhouse gas emissions from the relevant place of business compared to the quantity of emission permits allocated to the relevant place of business in the relevant compliance year is not less than 115/100 but less than 125/100: 50/100 of the quantity exceeding the quantity allocated;

b. Where the quantity of greenhouse gas emissions from the relevant place of business compared to the quantity of emission permits allocated to the relevant place of business in the relevant compliance year is not less than 125/100 but less than 150/100: 75/100 of the quantity exceeding the quantity allocated;

c. Where the quantity of greenhouse gas emissions from the relevant place of business compared to the quantity of emission permits allocated to the relevant place of business in the relevant compliance year is not less than 150/100: 100/100 of the quantity exceeding the quantity allocated.

(3) Where the Minister of Climate, Energy and Environment falls under Article 16(1)4 of the Act, the additional allocation amount shall be calculated as the quantity obtained by subtracting the existing emission permit allocation amount from the re-estimated emission permit allocation amount pursuant to the results of administrative appeals, administrative litigation, and other disputes. <Added on Feb. 7, 2025; Oct. 1, 2025>

(4) The number of additionally allocated emission permits calculated pursuant to paragraphs (2) and (3) shall be determined by the Minister of Climate, Energy and Environment in consultation with the competent agency by sector and through deliberation and coordination by the deliberative committee on allocation determination. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(5) The Minister of Climate, Energy and Environment shall notify the relevant business entity eligible for allocation of the number of additionally allocated emission permits determined under paragraph (4) within 5 months from the end of the pertinent compliance year; provided, in the case falling under Article 16(1)4 of the Act, notification shall be made within 3 months from the date on which the results of administrative appeals, administrative litigation, or other disputes are finalized. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(6) Emission permits in reserve shall be used as emission permits additionally allocated under paragraph (4). <Amended on Feb. 7, 2025>

(7) Additional emission permits allocated shall be sold to business entities eligible for allocation by means of auction. <Amended on Feb. 7, 2025>

(8) Except as provided in Article 27 and paragraphs (1) through (7) of this Article, detailed matters regarding the additional allocation of emission permits shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 29(Revocation of allocation of emission permits) #

(1) Where any reason falling under Article 17(1)1 of the Act occurs, the Minister of Climate, Energy and Environment may revoke emission permits equivalent to reduced total emission allowances allocated to business entities eligible for allocation in proportion to their existing emission permits allocated or revoke all or some of the emission permits reduced for a specific sector or business type. <Amended on Oct. 1, 2025>

(2) Where a business entity eligible for allocation closes all or some of its places of business pursuant to Article 17(1)2 of the Act (including cases in which the places of business are divided, transferred, or leased but the rights and obligations of which are not succeeded pursuant to the proviso of Article 8-2(1) of the Act; hereafter in this paragraph, the same shall apply), the Minister of Climate, Energy and Environment shall revoke the emission permits allocated for each place of business among emission permits for the relevant business entity eligible for allocation in accordance with the following classifications: <Amended on Oct. 1, 2025>

1. Emission permits allocated for the pertinent compliance year: emission permits in proportion to the number of days remaining from the date of closing the place of business to the end of the pertinent compliance year;

2. Emission permits allocated for the period from the following compliance year until the final compliance year: all emission permits.

(3) "Where greenhouse gas emissions ... are reduced to the level equivalent to or higher than that prescribed by Presidential Decree" in Article 17(1)3 of the Act means where the greenhouse gas emissions by the relevant place of business in the relevant compliance year does not exceed 85/100 of the quantity of emission permits allocated to the relevant place of business in the relevant compliance year. <Amended on Feb. 7, 2025>

(4) If a business entity eligible for allocation falls under any of the grounds referred to in Article 17(1)3 of the Act (including cases where the closure of a facility is due to division, transfer, or lease of the facility but the rights and obligations are not succeeded pursuant to the proviso to Article 8-2(1) of the Act), the Minister of Climate, Energy and Environment shall revoke emission permits calculated by multiplying the following quantities by the rate calculated by the method determined and publicly notified by the Minister of Climate, Energy and Environment in consideration of mid- to long-term reduction targets and sectoral reduction targets. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Where greenhouse gas emissions from the relevant place of business compared to the quantity of emission permits allocated to the relevant place of business in the relevant compliance year exceeds 75/100 but does not exceed 85/100: 50/100 of the quantity not exceeding the quantity allocated to the relevant place of business;

2. Where greenhouse gas emissions from the relevant place of business compared to the quantity of emission permits allocated to the relevant place of business in the relevant compliance year exceeds 50/100 but does not exceed 75/100: 75/100 of the quantity not exceeding the quantity allocated to the relevant place of business;

3. Where greenhouse gas emissions from the relevant place of business does not exceed 50/100 of the quantity of emission permits allocated to the relevant place of business in the relevant compliance year: 100/100 of the quantity not exceeding the quantity allocated to the relevant place of business.

(5) Where the grounds specified in Article 17(1)4 of the Act apply to a business entity eligible for allocation, the Minister of Climate, Energy and Environment shall revoke the emission permits, among emission permits allocated to the relevant business entity eligible for allocation. <Amended on Oct. 1, 2025>

(6) Where the grounds specified in Article 17(1)5 of the Act apply to a business entity eligible for allocation, the Minister of Climate, Energy and Environment shall revoke the emission permits allocated from the year in which the designation was revoked to the final compliance year, among emission permits allocated to the relevant business entity eligible for allocation. <Amended on Oct. 1, 2025>

(7) "Cases prescribed by Presidential Decree" in Article 17(1)6 of the Act refers to cases where, the emission permit allocation for the relevant compliance year of the business entity eligible for allocation is recalculated in accordance with the result of administrative appeals, administrative litigation, or other disputes and found to be reduced compared to the existing allocation. In such cases, the Minister of Climate, Energy and Environment shall revoke the number of emission permits obtained by subtracting the recalculated emission permit allocation based on the results of administrative appeals, administrative litigation, or other disputes from the existing emission permit allocation. <Added on Feb. 7, 2025; Oct. 1, 2025>

(8) A business entity eligible for allocation shall report to the Minister of Climate, Energy and Environment on the occurrence of a ground for revoking the allocation of emission permits by electronic means under Article 17(2) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(9) Where the Minister of Climate, Energy and Environment intends to revoke emission permits allocated under paragraphs (1) through (6), the Minister shall determine whether to revoke such emission permits in consultation with the competent agency by sector and deliberation and coordination by the Allocation Decision Deliberation Committee. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(10) Upon determining to revoke emission permits allocated pursuant to paragraph (9), the Minister of Climate, Energy and Environment shall notify the relevant business entity eligible for allocation of such fact without delay. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(11) The revocation of emission permits under paragraphs (1) through (7) shall be made by the Minister of Climate, Energy and Environment by transferring emission permits from the emissions trading account of the relevant business entity eligible for allocation to the emissions trading account for emission permits in reserves under Article 32(7)2. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(12) If emission permits are transferred under paragraph (11) and the quantity of emission permits held by a business entity eligible for allocation in its emissions trading account for the pertinent compliance year is less than the quantity of emission permits transferred following the revocation of emission permits, the Minister of Climate, Energy and Environment may transfer emission permits for another compliance year during the pertinent commitment period or the following commitment period. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(13) Where the Minister of Climate, Energy and Environment orders the surrender of emission permits pursuant to Article 17(3) of the Act, the Minister shall have the relevant business entity eligible for allocation hold the number of emission permits that fall short in its emissions trading account through trading, etc. within one month from the date of the order. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(14) Except as provided in paragraphs (1) through (13), detailed matters regarding the revocation of emission permits allocated shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 30(Emission permits in reserve) #

"Matters prescribed by Presidential Decree" in subparagraph 5 of Article 18 of the Act means the following:

1. Allocation of emission permits to business entities eligible for allocation which are new market entrants under the proviso of Article 12(1) of the Act;

2. Prevention of liquidity constraints caused by persons other than business entities eligible for allocation or makers of emissions trading markets under Article 22-2(1) of the Act who hold emission permits.

Article 31(Trading of emission permits) #

(1) "Persons prescribed by Presidential Decree" in Article 19(1)4 of the Act means the following persons: <Added on Feb. 7, 2025; Oct. 1, 2025>

1. An investment trader under Article 8(2) of the Financial Investment Services and Capital Markets Act;

2. A collective investment business entity under Article 8(4) of the Financial Investment Services and Capital Markets Act;

3. A trust business entity under article 8 (7) of the Financial Investment Services and Capital Markets Act prescribed and publicly notified by the Minister of Climate, Energy and Environment;

4. A concurrently-run financial investment entity corresponding to a bank or insurance company under Article 8(9)1 and 2 of the Financial Investment Services and Capital Markets Act, prescribed and publicly norified by the Minister of Climate, Energy and Environment;

5. A fund managing entity under Article 9(4) of the National Finance Act;

6. Persons other than those specified in subparagraphs 1 through 5 who are prescribed and publicly notified by the Minister of Climate, Energy and Environment to participate in the emission permits trading market.

(2) Emission permits shall be traded by unit of greenhouse gases converted into tons of comparable CO2 equivalents (tCO2-eq) according to the global warming potentials by greenhouse gas specified in Appendix 2 pursuant to Article 19(2) of the Act. <Amended on Feb. 7, 2025>

(3) One ton of comparable CO2 equivalents (tCO2-eq) converted under paragraph (2) shall be equal to one emission permit, which shall be the minimum unit of trading emission permits. <Amended on Feb. 7, 2025>

(4) Emission permits shall be traded in the emission permits trading market established by the emission permits exchange under Article 22 of the Act (hereinafter referred to as "trading on exchange of emission permits"); provided, in cases prescribed and publicly notified by the Minister of Climate, Energy and Environment, trading may take place at locations other than the emission permits trading market. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(5) A person falling under any subparagraph of paragraph (1) shall trade emission permits through an emissions trading brokerage company referred to in Article 22-3(2) of the Act (hereinafter referred to as "emissions trading brokerage company"); provided, this shall not apply where emission permits are traded at a place other than an emissions trading market pursuant to the proviso of paragraph (4). <Added on Feb. 7, 2025>

Article 32(Registration of emissions trading account) #

(1) A person who intends to trade emission permits shall apply for registration of an account for trading emission permits to the Minister of Climate, Energy and Environment by any of the following methods pursuant to Article 20(1) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Submitting an application for registration of an emissions trading account to the Minister of Climate, Energy and Environment;

2. A consignment contract concluded with an emission permit trading brokerage company shall be submitted to the Minister of Climate, Energy and Environment through the emission permit trading brokerage company (limited to cases where a person falling under any subparagraph of Article 31 (1) trades emission permits through the emission permit trading brokerage company pursuant to Article 31 (5)).

(2) If an emission trade brokerage company prepares an application for registration of an emissions trading account under paragraph (1)1, it shall prepare the application separately for each business under the subparagraphs of Article 22-3(1) of the Act. <Added on Feb. 7, 2025>

(3) If a trust business entity under Article 31(1)3 prepares an application for registration of an emissions trading account under paragraph (1)1, it shall prepare the application by classifying it into its own property and trust property. <Added on Feb. 7, 2025>

(4) Upon receipt of an application for registration of an emissions trading account pursuant to paragraph (1), the Minister of Climate, Energy and Environment shall examine the appropriateness of the application and open an emissions trading account of the applicant in the emission permits register. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(5) Notwithstanding paragraphs (1) through (4), the emissions trading accounts of a business entity eligible for allocation shall be registered in the emission permits register ex officio by the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(6) "Cases prescribed by Presidential Decree" in Article 20(3) of the Act means where the trading of emission permits by a foreign corporation or individual is permitted under a treaty or an international agreement for the linkage or integration of emissions trading markets. <Amended on Feb. 7, 2025>

(7) The Minister of Climate, Energy and Environment may, if necessary, register an emissions trading account classified as follows: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. An emissions trading account for the allocation of emission permits under Article 12 of the Act;

2. An emissions trading account for emission permits in reserve under Article 18 of the Act;

3. An emissions trading account for the surrender of emission permits under Article 27 of the Act;

4. Other accounts for trading emission permits for business affairs deemed necessary for stabilizing emissions trading markets.

(8) Details regarding procedures and forms for filing for registration of emissions trading accounts, methods of reviewing appropriateness of application for registration, etc. shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Added on Feb. 7, 2025; Oct. 1, 2025>

Article 33(Reporting on trading of emission permits) #

(1) When reporting the trading of emission permits pursuant to Article 21(1) of the Act, the following items shall be included: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Types, quantities and prices of emission permits traded;

2. Notarized documents regarding an agreement to trade emission permits between the transferor and the transferee (limited to cases where transactions are made at a place other than emissions trading markets, and excluding cases where emission permits are transferred without a transaction, such as inheritance or merger of corporations);

3. Other matters necessary for verifying the date of trading, information of persons involved in trading, and other relevant details, which are prescribed and publicly notified by the Minister of Climate, Energy and Environment.

(2) A person who trades emission permits shall report the fact of trading emission permits to the Minister of Climate, Energy and Environment by any of the following methods pursuant to Article 21 (1) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Submitting a report on the trading of emission permits, including the details referred to in the subparagraphs of paragraph (1) to the Minister of Climate, Energy and Environment by electronic means;

2. Information regarding the matters listed in each subparagraph of paragraph (1) shall be submitted to the Minister of Climate, Energy and Environment by electronic means through the emission permits exchange pursuant to Article 22(1) of the Act (limited to cases of trading on the exchange);

3. Information regarding the matters listed in each subparagraph of paragraph (1) shall be submitted to the Minister of Climate, Energy and Environment by electronic means through the emission permits trade brokerage company pursuant to Article 22(1) of the Act (limited to cases of trading on the exchange);

(3) Upon receipt of a report on the trading of emission permits under paragraph (2), the Minister of Climate, Energy and Environment shall, without delay, verify the following matters and transfer the reported emission permits from the transferor's emissions trading account to the transferee's emissions trading account: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Whether a person has an emissions trading account registered under Article 20 of the Act;

1-2. Whether it is a transaction of emission permits under Article 22-3(1)1 of the Act or a transaction of emission permits under subparagraph 2 of that paragraph;

1-3. Whether emission permits are traded for the operation of financial investment instruments (referring to financial investment instruments defined in Article 3(1) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply) that use emission permits as underlying assets (referring to underlying assets defined in Article 4(10) of the Financial Investment Services and Capital Markets Act; hereinafter the same shall apply);

2. Whether the minimum or maximum limit for the holding of emission permits under Article 23(2)2 of the Act are met;

2-2. Whether the transferor or transferee is a business entity eligible for allocation;

3. Whether agreements on the trading of emission permits between a transferee and a transferor are reached;

4. Whether such trading is intended to avoid any of the following:

a. Transfer and revocation of emission permits under Article 8-2(3) of the Act;

b. Revocation of the allocation of emission permits under Article 17(1) of the Act;

c. Surrender of emission permits under Article 27(1) of the Act.

(4) Except as provided in Articles 31 and 32 and paragraphs (1) through (3) of this Article, the Minister of Climate, Energy and Environment shall determine and publicly notify details regarding the trading of emission permits, registration of emissions trading accounts, registration fees, and reporting on trading of emission permits, etc. under subparagraph 2 of Article 39 of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 34(Establishment and designation of emission permits exchanges) #

(1) The Minister of Climate, Energy and Environment may establish an emission permits exchange under Article 22(1) of the Act (hereinafter referred to as "emission permits exchange") in consultation with the heads of relevant central administrative agencies or may designate an emission permits exchange after receiving an application from an institution, etc. capable of trading emission permits. <Amended on Oct. 1, 2025>

(2) Where the Minister of Climate, Energy and Environment intends to establish or designate an emission permits exchange pursuant to paragraph (1), the Minister shall refer the relevant matter to the Carbon Neutrality Committee for deliberation. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(3) "Important matters prescribed by Presidential Decree" in the latter part, with the exception of the subparagraphs, of Article 22(2) of the Act means the matters under subparagraphs 1 through 4 and 6 of that paragraph and the subparagraphs of paragraph (4) of this Article.

(4) "Matters prescribed by Presidential Decree" in Article 22(2)7 of the Act means the following: <Amended on Feb. 7, 2025>

1. Matters regarding the opening, closure, and suspension of an emissions trading market;

2. Matters regarding trading by members of an emission permits exchange under Article 22(3) of the Act in an emissions trading market;

3. Matters regarding the entrustment of emission permit trading by an emissions trading brokerage company, the establishment of management standards for its business, and the surveillance thereof;

4. Matters regarding the subject, size, etc. of the exchange-trading of emission permits.

(5) "Cases prescribed by Presidential Decree" in Article 22(4)2 of the Act means cases where an emission permits exchange ceases to meet the standards for designation of an emission permits exchange. <Added on Feb. 7, 2025>

(6) "Grounds prescribed by Presidential Decree" in Article 22(4)4 of the Act means any of the following cases: <Added on Feb. 7. 2025>

1. Where it performs its business during a period of business suspension, in violation of a measure to suspend its business under Article 22(5) of the Act;

2. Where permission for an exchange has been revoked for an emission permits exchange pursuant to Article 411(1) of the Financial Investment Services and Capital Markets Act (limited to where a person who has obtained permission for an exchange pursuant to Article 373-2(1) of the Financial Investment Services and Capital Markets Act has been designated as an emission permits exchange).

(7) "Reasons prescribed by Presidential Decree" in Article 22(5)6 of the Act means cases where an emission permits exchange is subject to suspension of business of the exchange pursuant to Article 411(2) of the Financial Investment Services and Capital Markets Act (limited to cases where a person who has obtained permission for an exchange pursuant to Article 373-2(1) of the Financial Investment Services and Capital Markets Act is designated as an emission permits exchange). <Added on Feb. 7, 2025>

(8) Except as provided in paragraphs (1) through (7), details regarding the standards for designating emission permits exchanges, procedures for filing an application for designation, etc. shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

[Title Amended on Feb. 7, 2025]

Article 35(Business affairs and supervision of emission permits exchange) #

(1) An emission permits exchange shall perform the following business affairs: <Amended on Feb. 7, 2025>

1. Establishment and operation of emissions trading markets;

2. Sale (including auction) and settlement of emission permits;

3. Hearing on unfair transactions and supervision of members;

3-2. Linked surveillance between the emissions trading markets and the financial investment instruments markets (referring to the financial investment instruments markets under Article 8-2(1) of the Financial Investment Services and Capital Markets Act);

4. Self-resolution of disputes arising from the purchase and sale of emission permits (limited to cases in which the parties apply therefor);

4-2. Publicly announcing the market prices, such as the daily trading volume and trading prices of emission permits, and the maximum, the lowest, and final daily trading prices, etc. of emission permits;

5. Other business affairs prescribed by operating regulations under Article 22(2) of the Act, as deemed necessary by the head of an emission permits exchange.

(2) The provisions regarding financial investment instruments under the Financial Investment Services and Capital Markets Act shall apply to the transaction of financial investment instruments using emission permits as underlying assets. <Amended on Feb. 7, 2025>

(3) Except as provided in the Financial Investment Services and Capital Markets Act regarding the scope and methods of issuance and operation of financial investment products based on emission permits as the underlying asset, detailed matters shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Added on Feb. 7, 2025; Oct. 1, 2025>

(4) An emission permits exchange shall comply with the following matters to ensure that information on the business affairs under subparagraphs 3, 3-2, and 4 of paragraph (1) (hereinafter referred to in this paragraph as "market surveillance affairs, etc.") does not flow into the department responsible for the business affairs under subparagraph 2 of that paragraph. <Added on Feb. 7, 2025; Oct. 1, 2025>

1. Executive officers and employees shall not provide information obtained in the course of performing their duties related to market surveillance, etc. to executive officers and employees in charge of the duties specified in Article 1(2);

2. Executive officers (excluding those prescribed and publicly notified by the Minister of Climate, Energy and Environment) and employees shall not concurrently perform market surveillance duties or the duties specified in subparagraph 2 of Article 1;

3. The office space of the department in charge of the duties of market surveillance, etc. and the office space of the department in charge of the duties referred to in paragraph (1)2 shall be separated, and electronic data on market surveillance, etc. shall be stored, managed, supervised, and perused independently;

4. Other matters prescribed and publicly notified by the Minister of Climate, Energy and Environment to block the inflow of information related to market surveillance duties, other than those provided in items 1 through 3.

(5) The Minister of Climate, Energy and Environment shall supervise emission permits exchanges to stabilize emissions trading markets and to maintain its sound trading order. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 36(Designation of makers of emissions trading markets) #

(1) A maker of emissions trading markets designated by the Minister of Climate, Energy and Environment under Article 22-2 (1) of the Act (hereinafter referred to as "market maker") shall conduct the following business affairs: <Amended on Oct. 1, 2025>

1. Offering of buy or sell quotes for emission permits;

2. Trading of emission permits.

(2) "Person prescribed by Presidential Decree" in Article 22-2(1)4 of the Act means a person who has obtained authorization to engage in both investment trading business and investment brokerage business under Article 12 of the Financial Investment Services and Capital Markets Act, to deal with equity securities under Article 4(4) of that Act. <Amended on Mar. 23, 2021>

(3) A person who intends to be designated as a market maker under Article 22-2 (1) of the Act shall meet all of the following requirements and apply for designation to the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. He or she shall designate at least 2 persons in charge of market-making affairs;

2. If a person who intends to be designated as a market maker is an emissions trading brokerage company, the internal control standards for the relevant emissions trading brokerage company (referring to the internal control standards under Article 22-3(2)2 of the Act) shall include measures to prevent conflicts of interest to protect market participants under Article 19(1) of the Act (hereinafter referred to as "market participants");

3. In cases of a person whose designation as a market maker has been revoked pursuant to Article 22-2(2) of the Act, 1 year shall elapse from the date on which the designation as a market maker has been revoked.

(4) The Minister of Climate Change, Energy and Environment may designate a person as a market maker if the person who applied for designation under paragraph (3) meets the requirements of each subparagraph of that paragraph. In such cases, the Minister of Climate, Energy and Environment shall notify the fact of the designation in the Official Gazette. <Added on Feb. 7, 2025; Oct. 1, 2025>

(5) A market maker shall submit the records to the Minister of Climate, Energy and Environment every month under Article 22-2 (3) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(6) When evaluating the records submitted under paragraph (5), the Minister of Climate, Energy and Environment may seek opinions from an emission permits exchange. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(7) Where the Minister of Climate, Energy and Environment requests a correction under Article 22-2 (4) of the Act, the Minister shall notify the relevant market maker in writing of the grounds for and the period of correction. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(8) The market maker, upon receipt of a notification under paragraph (7), shall take necessary implementation measures within the correction period, unless there is good reason. <Amended on Feb. 7, 2025>

(9) The Minister of Climate, Energy and Environment may lend all or part of the emission permits necessary for market making to a market maker from the reserve held to handle matters under Article 18 (2) of the Act. In such cases, the lending may be made differentially to each market maker in consideration of the evaluation results under paragraph (6). <Added on Feb. 7, 2025; Oct. 1, 2025>

(10) Except as provided in paragraphs (1) through (9), the Minister of Climate, Energy and Environment shall prescribe and publicly notify details of the procedures for designating market makers, the submission and evaluation of performance results, the request for corrective action, the implementation thereof, the loan of emission permits in reserve, etc. <Amended on Feb. 7, 2025; Oct. 1, 2025>

[Title Amended on Feb. 7, 2025]

[Moved from Article 37; previous Article 36 moved to Article 37 <Feb. 7, 2025>]

Article 36-2(Revocation of designation of makers of emissions trading markets) #

(1) The Minister of Climate, Energy and Environment may revoke the designation of a market maker in any of the following cases under Article 22-2(2). <Amended on Oct. 1, 2025>

1. Where the market maker is no longer in operation due to merger, bankruptcy or closure of business, or for any other reason;

2. Where the market maker violates Article 22(3) of the Act;

3. Where the market maker files a false report on the results of market-making activities or fails to report within a specified period by intent or gross negligence, in violation of Article 22-2(3) of the Act;

4. Where the performance of market-making activities by the market maker under Article 22-2(3) of the Act is deemed substantially insufficient;

5. Where the market maker fails without good cause to comply with a request for correction made by the Minister of Climate, Energy and Environment in violation of the latter part of Article 22-2(4) of the Act;

6. Where the market maker fails to meet the designation requirements under each subparagraph of Article 36(3); provided, this shall not apply to cases where it temporarily fails to meet the requirements for the manager in charge of market making under subparagraph 1 of that paragraph, as prescribed and publicly notified by the Minister of Climate, Energy and Environment.

7. Where a person is unable to perform the role of a market maker for reasons equivalent to those in subparagraphs 1 through 6, as prescribed and publicly notified by the Minister of Climate, Energy and Environment.

(2) Where the Minister of Climate, Energy and Environment revokes the designation of a market maker pursuant to paragraph (1), the Minister shall order the market maker whose designation has been revoked to dispose of the emission permits held by it within a period not exceeding 6 months in accordance with the following subparagraphs, pursuant to Article 22-2 (5) of the Act. <Amended on Oct. 1, 2025>

1. Emission permits loaned from those in reserves pursuant to Article 36(9): All emission permits shall be returned; provided, with respect to emission permits sold for market-making activities, cash equivalent to the average price of the actual sale shall be refunded;

2. Emission permits held by a market maker whose designation has been revoked, on his or her own account: Selling through an emissions trading brokerage company.

(3) Where a market maker whose designation has been revoked pursuant to paragraph (1) fails to dispose of emission permits in accordance with an order under paragraph (2), the Minister of Climate, Energy and Environment shall ex officio transfer or revoke the relevant emission permits as classified as follows under Article 22-2 (6) of the Act. <Amended on Oct. 1, 2025>

1. Emission permits loaned from those in reserves under Article 36(9): Transfer to the emission trading account under Article 32(7)2;

2. Emission permits held by a market maker whose designation has been revoked, on his or her own account: Revocation.

[This Article Added on Feb. 7, 2025]

Article 37(Registration of emissions trading brokerage companies) #

(1) "Requirements prescribed by Presidential Decree" in Article 22-3(2)4 of the Act means measures to maintain the continuity of business affairs in case of power failures, fires, etc.

(2) Detailed requirements for registration of emissions trading brokerage companies under Article 22-3(2) of the Act shall be as specified in Appendix 8.

(3) Article 19(1)1, 2, 4 through 8, and 10 of the Enforcement Decree of the Act on Corporate Governance of Financial Companies and Article 45(3) of the Financial Investment Services and Capital Markets Act shall apply mutatis mutandis to matters to be included in the internal control standards under Article 22-3(2)2 of the Act (hereinafter referred to as "internal control standards"). In such cases, "finance-related statutes and regulations" shall be construed as "the Act on the Allocation and Trading of Greenhouse-Gas Emission Permits and its subordinate statutes and regulations".

(4) Detailed matters regarding the procedure, forms, etc. for registering the emission permit trading brokerage company shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

[This Article Wholly Amended on Feb. 7, 2025]

[Moved from Article 36; previous Article 37 moved to Article 36 <Feb. 7, 2025>]

Article 37-2(Measures against emissions trading brokerage companies) #

(1) "Cases prescribed by Presidential Decree" in Article 22-3(3)7 of the Act means any of the following cases:

1. Where it fails to commence its business within six months from the date of registration as an emissions trading brokerage company without good cause;

2. Where it has no business performance for at least 12 months consecutively without good cause.

(2) The standards for administrative dispositions, such as suspension of business or revocation of registration of emissions trading brokerage companies under Article 22-3(3) of the Act, shall be as specified in Appendix 9.

[This Article Added on Feb. 7, 2025]

Article 37-3(Disposal of emission permits by emissions trading brokerage companies whose registration has been revoked) #

(1) Where the Minister of Climate, Energy and Environment revokes the designation of a market maker pursuant to paragraph (1), the Minister shall order the emission permits trading brokerage company whose registration has been revoked to dispose of the emission permits held by it within a period not exceeding 6 months in accordance with the following subparagraphs, pursuant to Article 22-3(4) of the Act. <Amended on Oct. 1, 2025>

1. Emission permits held on its own account pursuant to Article 22-3(1)1 of the Act: The emissions trading brokerage company shall sell them through another emissions trading brokerage company;

2. Emission permits held on another person's account pursuant to Article 22-3(1)2 of the Act: The emissions trading brokerage company shall notify a market participant who has entrusted the trading of emission permits to the emissions trading brokerage company (hereinafter referred to as "trustee") of the fact that the registration of the emissions trading brokerage company has been revoked, the fact that the company has been ordered to dispose of emission permits, the period and method of disposal of emission permits, and the decision-making procedures for disposal of emission permits, and shall dispose of them in accordance with a decision made by the trustor, by any of the following means:

a. The emission permits shall be sold through another emissions trading brokerage company;

b. A request shall be made to the Minister of Climate, Energy and Environment to transfer the emission permits to another emission permits trading brokerage company: In such cases, the Minister of Climate, Energy and Environment upon receipt of such request shall transfer the relevant permits to another emission permits trading brokerage company designated by the trustor.

(2) Where an emission permits trading brokerage company whose registration has been revoked fails to dispose of emission permits in accordance with an order under paragraph (1), the Minister of Climate, Energy and Environment may set a one-month deadline and transfer or revoke the relevant emission permits as classified as follows under Article 22-3(5) of the Act. <Amended on Oct. 1, 2025>

1. Emission permits held by an emissions trading brokerage company whose registration has been revoked, on its own account pursuant to Article 22-3(1)1 of the Act: Revocation;

2. Emission permits held on the account of another person by an emission permit trading brokerage company whose registration has been revoked under Article 22-3(1)2 of the Act: the Minister of Climate, Energy and Environment shall notify the trustor of the revocation of the registration of the emission permit trading brokerage company, the order for the disposition of the emission permits, the period and method of disposition, and the decision-making procedures regarding the disposition, and shall designate an emission permit trading brokerage company to which the emission permits will be transferred ex officio and transfer the emission permits.

(3) Except as provided in paragraphs (1) and (2), detailed matters regarding the disposition, transfer, and revocation of emission permits by emission permit trading brokerage company shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

[This Article Added on Feb. 7, 2025]

Article 37-4(Recording and retention of data) #

The period for recording and maintaining the records under Article 22-3(6)4 of the Act shall be classified as follows; provided, if the Minister of Climate, Energy and Environment deems that there is no risk of undermining the stability of the emission trading market and the protection of market participants, the period may be shortened and publicly notified. <Amended on Oct. 1, 2025>

1. Data on business:

a. Data on the sale and purchase of emission permits and financial investment instruments using emission permits as underlying assets, such as order records and details of trading, etc.: 10 years;

b. Data on contracts concluded with trustors (limited to data on business affairs under Article 22-3(1)2 of the Act): 10 years;

c. Data on business other than those referred to in items a and b: 5 years;

2. Data on property management:

a. Data on management of entrusted property: 10 years;

b. Data on management of the company's own property: 3 years;

3. Data on internal control;

a. Data on the matters referred to in Article 22-3(2)2 of the Act: 5 years;

b. Data on details of transactions with interested parties, etc. and qualifications for executive officers: 5 years;

c. Data on internal control, other than those prescribed in items a and b: 3 years.

[This Article Added on Feb. 7, 2025]

Article 37-5(Notification of trading details) #

When an emissions trading brokerage company notifies a market participant of the trading details of emission permits pursuant to Article 22-3(6)5 of the Act, it shall adhere to the following methods:

1. Notification shall be made within the following periods:

a. All expenses, including the types, quantity, prices, and fees of emission permits for which trading has been concluded: Without delay after the trading is concluded;

b. Monthly trading details, profit and loss details, and status of balance of deposits made by market participants under Article 22-3(6)6 of the Act as of the end of each month: By the 20th day of the month following the date the transaction is concluded;

2. Among the following methods, notification shall be given by a method agreed in advance between an emissions trading brokerage company and a market participant; provided, if a market participant does not wish to receive notification, it may instead be made available at a branch or other place of business of the emissions trading brokerage company or by making it available for inspection from time to time on its website:

a. Issuance in writing;

b. Notification by telephone or facsimile;

c. Notification by electronic mail or other similar electronic communications.

[This Article Added on Feb. 7, 2025]

Article 37-6(Segregation of market participants' deposits) #

(1) Pursuant to Article 22-3(6)6 of the Act, an emissions trading brokerage company shall, without delay, deposit the deposits (referring to money deposited by market participants in connection with the trading of emission permits and other transactions; hereinafter the same shall apply) of market participants in accordance with Article 22-3(6)6 of the Act, separately from their own property, with a securities finance company under Article 9(17)3 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "securities finance company"). In such cases, it shall make a statement to the effect that the deposits of such market participants are the property of the market participants.

(2) A emissions trading brokerage company that has deposited market participants' deposits shall not transfer or provide as collateral the deposited market participants' deposits except in cases separately prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(3) If an emissions trading brokerage company falls under any of the following subparagraphs, a securities finance company shall preferentially pay a market participant's deposits to the market participant at the request of the market participant:

1. Where registration is revoked pursuant to Article 22-3(3) of the Act;

2. Where a resolution for dissolution has been adopted;

3. Where it is declared bankrupt;

4. Where the transfer of the entirety of the investment brokerage business under Article 6(1)2 of the Financial Investment Services and Capital Markets Act (hereinafter referred to as "investment brokerage business") is approved pursuant to Article 417(1)4 of that Act;

5. Where the discontinuance of the entire investment brokerage business (including cases equivalent thereto) is approved pursuant to Article 417(1)6 of the Financial Investment Services and Capital Markets Act;

6. Where it has been ordered to suspend the entire investment brokerage business pursuant to Article 420(3)1 of the Financial Investment Services and Capital Markets Act, and is in the period of suspension;

7. Where any other cause equivalent to the cases referred to in subparagraphs 1 through 6 occurs.

(4) Detailed matters regarding the methods, etc. for calculating the deposit, period for depositing, method of payment deposit when determining the number of such emission permits shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

[This Article Added on Feb. 7, 2025]

Article 37-7(Prohibition on compensation for loss) #

"Act of compensating for losses or guaranteeing profits, etc." in Article 22-3(6)7c of the Act means any of the following acts:

1. Promising in advance to compensate for all or some of the losses sustained by a market participant;

2. Making up for all or some of the losses sustained by a market participant;

3. Promising in advance to guarantee certain profits to a market participant;

4. Providing certain profits to market participants.

[This Article Added on Feb. 7, 2025]

Article 37-8(Prohibition of unsound business practices) #

Subparagraphs 1, 2, and 6 (excluding the proviso) of Article 71 of the Financial Investment Services and Capital Markets Act and Article 68(5)3, 5, 7 and 8 of the Enforcement Decree of that Act shall apply mutatis mutandis to unsound business practices prohibited pursuant to Article 22-3(6)7e of the Act. In such cases, "investors" shall be construed as "market participants" and "financial investment instruments" shall be construed as "emission permits or financial investment instruments with underlying assets based on emission permits" and "financial investment instruments" shall be construed as "emission permits or financial investment instruments with underlying assets based on emission permits".

[This Article Added on Feb. 7, 2025]

Article 37-9(Emissions trading brokerage companies' duty to provide explanations) #

Matters prescribed by Presidential Decree in Article 22-3(7) of the Act means the following:

1. Details and characteristics of trading of emission permits;

2. Details and degree of risks arising from trading of emission permits (excluding cases where the counterparty to the contract is a specialized investor under Article 9(5) of the Financial Investment Services and Capital Markets Act);

3. Termination and cancellation of an emission trading brokerage contract;

4. Management of emission trading accounts through emission trading brokerage companies (excluding where the counterparty to a contract is a professional investor under Article 9(5) of the Financial Investment Services and Capital Markets Act);

5. Matters regarding fee ratio and amount of fees.

[This Article Added on Feb. 7, 2025]

Article 37-10(Reporting on business affairs of emission trade brokerage companies) #

"Matters prescribed by Presidential Decree" in Article 22-3 (8) 3 of the Act means the following: <Amended on Oct. 1, 2025>

1. Outline and details of business affairs of the emission trading brokerage company;

2. Matters regarding the current status of property held for business purposes under Article 22-3(1)2 of the Act and the protection thereof;

3. Matters regarding the current status of the issuance and management of financial investment instruments using emission permits as underlying assets and the current status of valuation gains and losses (including valuation gains and losses on trading transactions for hedging risks), and others;

4. If the emissions trading brokerage company or its employees have received measures from the Minister of Climate, Energy and Environment, the Financial Services Commission, and the Governor of the Financial Supervisory Service pursuant to Article 24 of the Act on the Establishment of the Financial Supervisory Service (hereinafter referred to as the "Governor of the Financial Supervisory Service") in the last three years, the contents thereof;

5. Other matters related to the business or management of emission permits brokerage companies that the Minister of Climate, Energy and Environment deems necessary and publicly notifies.

[This Article Added on Feb. 7, 2025]

Article 37-11(Supervision over market participants) #

(1) The Minister of Climate, Energy and Environment may, if deemed necessary for the management and supervision of market participants pursuant to Article 22-4(3) of the Act, request the Governor of the Financial Supervisory Service to cooperate in conducting an inspection of an emission permits trading brokerage company under Article 419 of the Financial Investment Services and Capital Markets Act. <Amended on Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment and the Governor of the Financial Supervisory Service may request mutual cooperation, including the submission of materials, if deemed necessary for the sound operation of the emission permits trading market. <Amended on Oct. 1, 2025>

[This Article Added on Feb. 7, 2025]

Article 38(Standards for market stabilization measures) #

(1) "Rate prescribed by Presidential Decree" in Article 23(1)1 of the Act means three times.

(2) "Cause or event prescribed by Presidential Decree" in Article 23(1)2 of the Act means where the average trading volume in the last one month is increased by at least twice the larger of the monthly average trading volumes in the same month in the immediately preceding two years and the average emission price in the last one month is higher than at least twice the average emission price in the immediately preceding two years.

(3) "Cases prescribed by Presidential Decree" in Article 23(1)3 of the Act means any of the following cases: <Amended on Feb. 7, 2025>

1. Where the average price of emission permits in the last 1 month does not exceed 70/100 of the average price of emission permits over the last two years;

2. Where it is impracticable for business entities eligible for allocation to trade emission permits because the demand for emission permits far surpasses the supply in an emissions trading market, which results from business entities eligible for allocation not engaging in the trading of their emission permits and for other reasons.

(4) Where the Minister of Climate, Energy and Environment deems it impracticable to achieve the objectives of market stabilization measures under Article 23(1) of the Act (hereinafter referred to as "market stabilization measures"), other than the measures under Article 23(2)2 of the Act, the Minister may establish the minimum or maximum limit for the holding of emission permits under Article 23(2)2 after deliberation by the Allocation Committee; provided, if the objectives of market stabilization are deemed achieved, the minimum or maximum holding limit shall be withdrawn immediately. <Amended on Oct. 1, 2025>

(5) The minimum or maximum limit for the holding of emission permits referred to in paragraph (4) shall be set within the scope classified as follows; provided, such maximum holding limit may be set differently for trading participants which hold not more than 25,000 emission permits on average in the immediately preceding six months (excluding business entities eligible for allocation):

1. Minimum holding limit: At least 70/100 of emission permits for the pertinent compliance year, which are allocated to a business entity eligible for allocation;

2. Maximum holding limit: Not exceeding 150/100 of emission permits for the pertinent compliance year, which are allocated to a business entity eligible for allocation (in the case of a trading participant, other than a business entity eligible for allocation, referring to the average number of emission permits held in the immediately preceding six months).

(6) "Method prescribed by Presidential Decree" in Article 23(2)3 of the Act means the establishment of a temporary maximum or minimum purchase and sale price of emission permits.

(7) Where the Minister of Climate, Energy and Environment deems that the objectives of market stabilization are achieved, the Minister may cease market stabilization measures through deliberation by the Allocation Committee; provided, the Minister of Environment shall cease market stabilization measures by resolution of the Allocation Committee, requiring the cessation of such market stabilization measures. <Amended on Oct. 1, 2025>

(8) Where the Minister of Climate, Energy and Environment takes or ceases market stabilization measures, the Minister shall immediately publicly announce the main cause for and details of the market stabilization measures, the fact that such measures are ceased, and other similar matters. <Amended on Oct. 1, 2025>

(9) Except as provided in paragraphs (1) through (8), detailed matters regarding the standards, methods, and procedures for implementing market stabilization measures shall be determined by the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 39(Reporting and verification of emissions) #

(1) A business entity eligible for allocation shall prepare a statement including the following information in a measurable, reportable, and verifiable manner pursuant to Article 24(1) of the Act, and shall submit such statement to the Minister of Climate, Energy and Environment by electronic means, accompanied by a verification report prepared by a verification institution: <Amended on Oct. 1, 2025>

1. Comprehensive information, such as business type, sales, process chart, facility layout map, greenhouse gas emissions, and energy consumption of a business entity;

2. Type, size, and load ratio of greenhouse gas emission facilities, greenhouse gas emissions, and energy consumption in each place of business;

3. Methods of calculating and measuring greenhouse gases emitted by each emission facility or emission activity, the basis of such calculation and measurement, and greenhouse gas emissions;

4. Changes in greenhouse gas emission facilities and in the methods of calculating greenhouse gas emissions, and matters to be reported in relation to the exclusion from the calculation of greenhouse gas emissions;

5. Production or outsourcing volumes, or emission efficiency by process in each place of business (in cases of emission permits allocated by the benchmark, greenhouse gas emissions and energy consumption by place of business, facility, process, product, or outsourcing service);

6. Information on the records of using and reducing greenhouse gases and on the sale, purchase, etc. of greenhouse gases and energy;

7. Results of developing the emission coefficient only applicable to each particular place of business;

8. Other matters the Minister of Climate, Energy and Environment publicly notifies in consultation with the heads of relevant central administrative agencies.

(2) Where any modification is made to a statement submitted, a business entity eligible for allocation shall modify the statement within 30 days, and submit such statement to the Minister of Climate, Energy and Environment by electronic means, accompanied by a verification report prepared by a verification institution. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(3) Where there is a defect or omission in the data submitted under paragraphs (1) and (2), the Minister of Climate, Energy and Environment may order the relevant business entity eligible for allocation or the verification institution to correct or supplement such data. <Amended on Oct. 1, 2025>

(4) Where the Minister of Climate, Energy and Environment issues an order for correction or supplementation pursuant to paragraph (3), the relevant business entity eligible for allocation or the verification institution shall correct or supplement the statement or the verification report, and submit such plan or report to the Minister of Climate, Energy and Environment by electronic means within 15 days. <Amended on Oct. 1, 2025>

(5) The Minister of Climate, Energy and Environment shall manage all data submitted under paragraphs (1) through (4) by including them in the emission permits register. <Amended on Oct. 1, 2025>

(6) The Minister of Climate, Energy and Environment may disclose any key information, such as the greenhouse gas emissions by each business entity or place of business, among information included in the data submitted under paragraph (1) through (4); provided, a business entity eligible for allocation may request the non-disclosure of such information where the disclosure of information is likely to infringe upon its rights or trade secret. <Amended on Oct. 1, 2025>

(7) Upon receipt of a request for the non-disclosure of information under the proviso of paragraph (6), the Minister of Climate, Energy and Environment shall have an examination committee examine the matter to decide on whether to disclose such information under Article 27 (5) of the Framework Act and notify the relevant business entity eligible for allocation of the results thereof immediately. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(8) Except as provided in paragraphs (1) through (7), detailed matters regarding the submission and verification of statements and the disclosure of information shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 40(Designation of verification institution) #

(1) "Standards prescribed by Presidential Decree" in the former part, with the exception of the subparagraphs, of Article 24-2(1) of the Act means the following:

1. At least five professional human resources capable of measuring, reporting, and verifying greenhouse gas emissions (referring to verification examiners under Article 24-3(1) of the Act), and facilities and equipment therefor;

2. Corporations which have purchased a liability insurance policy, the amount of indemnity covered by which is at least one billion won in relation to the verification of greenhouse gas emissions.

(2) The Minister of Climate, Energy and Environment may designate the scope of work of a verification institution pursuant to the latter part, with exception of each subparagraph of paragraph (1), of Article 24-2(1) of the Act, as the work of verifying the matters specified in each subparagraph of that paragraph, and the validity period of the designation of a verification institution shall be three years from the date of designation. In such cases, a person who intends to be designated as a verification institution again must apply for redesignation to the Minister of Climate Energy and Environment at least 3 months before the expiration of the validity period, and the Minister of Climate Energy and Environment may redesignate it as a verification institution if it meets the requirements for designation under paragraph (1). <Amended Feb. 7, 2025, Oct. 1, 2025>

(3) If the Minister of Climate, Energy and Environment designates a verification institution pursuant to Article 24-2(1) of the Act, he or she shall publicly notify the details thereof without delay and issue a certificate of designation of a verification institution to the relevant institution. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(4) "Work standards prescribed by Presidential Decree" in Article 24-2(3) of the Act means the work standards specified in Appendix 3.

(5) Where a verification institution verifies a statement of a business entity eligible for allocation, and where any of the following is applicable, it shall give notice to the business entity eligible for allocation, and the business entity eligible for allocation shall correct and supplement the statement based on such notice:

1. Where a statement is not prepared pursuant to Article 39(1);

2. Where a statement is not prepared based on a plan for calculating emissions;

3. Where actual emissions are different from details of the statement.

(6) The standards for the revocation of designation of a verification institution and other administrative dispositions under Article 24-2(5) of the Act shall be as specified in Appendix 4. <Amended on Feb. 7, 2025>

(7) Where the Minister of Climate, Energy and Environment revokes the designation of a verification institution under Article 24-2(5) of the Act, the Minister shall notify the relevant verification institution of such fact and publicly notify the details thereof without delay. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(8) A verification institution that fails to be re-designated pursuant to the latter part of paragraph (2) and whose validity period expires, or that is notified of the revocation of designation pursuant to paragraph (7), shall return the certificate of designation of the verification institution to the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(9) A verification institution shall prepare a report on the results of verification semiannually and submit such report to the Minister of Climate, Energy and Environment under Article 24-2(7) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(10) The Minister of Climate, Energy and Environment who receives the results of verification pursuant to paragraph (9) may periodically or occasionally evaluate the appropriateness of the performance of verification. <Amended on Oct. 1, 2025>

(11) Except as provided in paragraphs (1) through (10), detailed matters regarding facility and equipment standards to be met by a verification institution, designation and revocation of designation, work suspension or corrective measures, standards and procedures for the verification of a statement, and submission and evaluation of the results of verification shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 41(Qualifications of verification examiners) #

(1) The areas of expertise and qualification requirements of verification examiners under Article 24-3(1) of the Act shall be as specified in Appendix 5.

(2) Where the Minister of Climate, Energy and Environment grants the qualification to a verification examiner who meets the qualification requirements under paragraph (1), the Minister shall issue a certificate of qualification without delay. <Amended on Oct. 1, 2025>

(3) The work standards with which a verification examiner under Article 24-3(1) of the Act (hereinafter referred to as "verification examiner") shall comply under paragraph (2) of that Article shall be as specified in Appendix 6.

(4) The standards for administrative dispositions, such as revocation of qualification of verification examiners under Article 24-3(4) of the Act, shall be as specified in Appendix 7. <Amended on Feb. 7, 2025>

(5) Upon revoking the qualification of a verification examiner under Article 24-3(4) of the Act, the Minister of Climate, Energy and Environment shall notify the relevant verification examiner of such fact without delay. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(6) A verification examiner, upon receipt of a notice of the revocation of qualification under paragraph (5), shall return the certificate of qualification under paragraph (2) to the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(7) Except as provided in paragraphs (1) through (6), detailed matters regarding the granting and revocation of the qualification of a verification examiner shall be determined and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 41-2(Application for permission to establish Korea Verification Association of Greenhouse Gas) #

(1) A person who intends to obtain a license to establish a Greenhouse Gas Verification Association (hereinafter referred to as "association") pursuant to Article 24-4(3) of the Act shall apply for a permission for establishment to the Minister of Climate Energy and Environment with the following documents. <Amended on Oct. 1 ,2025>

1. An application for permission for establishment;

2. The list of promoters;

3. Minutes of the inaugural general meeting;

4. The articles of incorporation;

5. Written acceptance of inauguration by the executive officers to be appointed;

6. A list of property;

7. A plan for the performance of duties, including the duties referred to in subparagraphs of Article 41-3.

(2) The articles of incorporation referred to in paragraph (1)4 shall include the following matters:

1. Name;

2. Objectives;

3. Seat of its main office;

4. Matters regarding business affairs;

5. Matters regarding the composition and operation of the general assembly and board of directors;

6. Matters regarding qualifications for executive officers;

7. Matters regarding membership qualifications;

8. Matters regarding assets and accounting;

9. Matters regarding amendments to the articles of incorporation.

[This Article Added on Feb. 7, 2025]

Article 41-3(Duties of Korea Verification Association of Greenhouse Gas) #

The Association shall perform the following duties:

1. Investigation, research, education, and publicity on the verification of greenhouse gas emissions, reductions, etc. (hereafter in this Article referred to as "greenhouse gas verification");

2. Projects for improving the fairness, expertise, and reliability of greenhouse gas verification;

3. International exchange and cooperation related to greenhouse gas verification;

4. Duties related to greenhouse gas verification, which are entrusted by the State or local governments;

5. Duties prescribed by the articles of incorporation, other than those provided in subparagraphs 1 through 4.

[This Article Added on Feb. 7, 2025]

Article 42(Certification of emissions) #

(1) Where the Minister of Climate, Energy and Environment certifies the actual greenhouse gas emissions produced by a business entity eligible for allocation under Article 25(1) of the Act, the Minister shall refer the relevant matter to the Emissions Certification Committee established under Article 26 of the Act for deliberation. <Amended on Oct. 1, 2025>

(2) The Minister of Climate, Energy and Environment may order a business entity eligible for allocation which fails to report its emissions by the deadline under Article 24(1) of the Act to submit a statement within a specified period not exceeding 1 month. <Amended on Oct. 1, 2025>

(3) Where a business entity eligible for allocation fails to report the emissions within the deadline for the submission of a statement under paragraph (2), the Minister of Environment may, ex officio, calculate and certify the greenhouse gas emissions produced by the business entity eligible for allocation after conducting a fact-finding survey under Article 37 of the Act; provided, if it is impracticable to calculate the greenhouse gas emissions by conducting a fact-finding survey, the Minister of Climate, Energy and Environment may, ex officio, calculate and certify the emissions based on the previous emissions of the relevant business entity eligible for allocation or the emissions of other business entities eligible for allocation of the same type or similar size. <Amended on Oct. 1, 2025>

(4) Where the Minister of Climate, Energy and Environment notifies a business entity eligible for allocation of the results of certifying emissions under Article 25(4) of the Act, the Minister shall also notify the competent agency by sector of the details thereof. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(5) Except as provided in paragraphs (1) through (4), detailed matters regarding the standards and procedure for certifying emissions shall be prescribed and publicly notified by the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

Article 43(Emissions Certification Committee) #

(1) The Emissions Certification Committee under Article 26 of the Act (hereinafter referred to as the "Certification Committee") shall consist of not more than 16 members, including one chairperson.

(2) The Chairperson of the Certification Committee (referring to the Vice Minister designated by the Minister of Climate, Energy and Environment) shall be the Vice Minister of Climate, Energy and Environment (referring to the Vice Minister designated by the Minister of Climate, Energy and Environment), and its members shall be the following persons. <Amended on Oct. 1, 2025; Oct. 1, 2025>

1. Persons appointed by the heads of relevant agencies from among members of the Senior Executive Service of the Ministry of Economy and Finance, the Ministry of Agriculture, Food and Rural Affairs, the Ministry of Trade, Industry and Resources, the Ministry of Climate, Energy and Environment, the Ministry of Land, Infrastructure and Transport, the Ministry of Oceans and Fisheries, the Office for Government Policy Coordination, the Korea Forest Service and other relevant central administrative agencies deemed necessary by the chairperson of the Certification Committee;

2. Persons commissioned by the Minister of Climate, Energy and Environment from among experts in the relevant industrial, research, or academic fields upon the recommendations of the heads of relevant central administrative agencies.

(3) The Certification Committee shall deliberate on and coordinate the following matters:<Amended on Oct. 1, 2025>

1. Results of the conformity assessment of a statement under Article 25(1) of the Act submitted by a business entity eligible for allocation pursuant to Article 24(1) of the Act;

2. Results of evaluating the feasibility of external projects under the main clause of Article 48(1);

3. Results of reviews by the competent agency by sector and results of consultations with the Minister of Climate, Energy and Environment regarding an application for the certification of greenhouse gas reductions from an external project under Article 49(3);

4. Others matters on which a resolution was passed by the Certification Committee among technical matters regarding an external project’s compliance with international standards under Article 29 of the Act.

(4) Each member shall hold office for a term of two years under paragraph (2)2 and may be appointed consecutively only once.

(5) Articles 5 and 6 shall apply mutatis mutandis to exclusion of, challenge to, and recusal and dismissal of members of the Certification Committee. In such cases, "Allocation Committee" shall be construed as "Certification Committee"; "Minister of Economy and Finance" as "Minister of Climate, Energy and Environment"; and "Article 7(2)2 of the Act" as "Article 43(2)2". <Amended on Oct. 1, 2025>

(6) Article 7 shall apply mutatis mutandis to a meeting of the Certification Committee, its opening and resolution, and hearing of opinions therein. In such cases, "Allocation Committee" shall be construed as "Certification Committee."

(6) Except as provided in paragraphs (3) through (6), detailed matters necessary for the operation of the Certification Committee shall be prescribed by the chairperson of the Certification Committee after resolution by the Certification Committee.

Article 44(Surrender of emission permits) #

(1) A business entity eligible for allocation shall submit a report on the surrender of emission permits (hereinafter referred to as "report" in this Article) including the following matters to the Minister of Climate, Energy and Environment within 8 months from the end of the compliance year for the surrender of emission permits under Article 27 (1) of the Act. <Amended Feb. 7, 2025, Oct. 1, 2025>

1. Registration numbers of the emission permits register and the offset register of the relevant business entity eligible for allocation;

2. Greenhouse gas emissions certified under Article 25 of the Act;

3. Borrowed emission permits, which are approved under Article 28(2) of the Act;

4. Number of offset emission permits to be surrendered under Article 29(3) of the Act.

(2) Upon receipt of a report under paragraph (1), the Minister of Climate, Energy and Environment may review the report to find any error therein, and if any error is found, the Minister may immediately request that the relevant business entity eligible for allocation make corrections, or may make corrections ex officio. <Amended on Oct. 1, 2025>

(3) Where the Minister of Climate, Energy and Environment reviews and finds no error in the report submitted pursuant to paragraph (1), the Minister shall register the details in the emission permits register without delay and transfer the surrendered emission permits from the account for trading emission permits of the relevant business entity eligible for allocation to the account for trading emission permits under Article 32(7)3. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(4) Emission permits that business entities eligible for allocation surrender under Article 27(1) of the Act shall be any of the following:

1. Emission permits allocated for each compliance year in which greenhouse gases are actually emitted;

2. Emission permits carried over from the previous compliance year;

3. Emission permits borrowed from the following compliance year;

4. Offset emission permits under Article 29(3) of the Act.

Article 45(Borrowing of emission permits) #

(1) "Ground prescribed by Presidential Decree" in Article 28(2) of the Act means cases where it is impracticable to completely fulfill the obligation to surrender emission permits, as the number of emission permits held is less than the number of emission permits to be surrendered at the time of surrendering emission permits under Article 27(1) of the Act.

(2) The maximum number of emission permits that may be borrowed under Article 28(3) of the Act shall be calculated by the following formulas: <Amended on Oct. 1, 2025>

1. The first compliance year during the pertinent commitment period: The number of emission permits to be surrendered to the Minister of Climate, Energy and Environment by the relevant business entity eligible for allocation x 15/100;

2. From the second compliance year during the pertinent commitment period until the compliance year immediately preceding the final compliance year: The number of emission permits that shall be surrendered to the Minister of Climate, Energy and Environment by the relevant business entity eligible for allocation x [the ratio of the maximum number of emission permits that can be borrowed out of the number of emission permits that shall be surrendered in the immediately preceding compliance year during the pertinent commitment period - (the ratio of the number of emission permits borrowed out of the number of emission permits that shall be surrendered in the immediately preceding compliance year during the pertinent commitment period x 50/100)].

Article 46(Procedures for carryover and borrowing of emission permits) #

(1) A person who intends to carry over or borrow emission permits pursuant to Article 28 of the Act shall submit an application for carryover or borrowing of emission permits to the Minister of Climate, Energy and Environment by electronic means within 8 months from the end of the relevant compliance year. <Amended on Feb. 7, 2025; Oct. 1, 2025>

(2) Deleted. <Feb. 7, 2025>

(3) The Minister of Climate, Energy and Environment shall determine whether to grant approval after examining an application under paragraph (1) by the deadline for submission of emission permits under Article 44(1) and shall notify the relevant applicant of the results thereof without delay. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 47(Offset) #

(1) The standards for converting emission permits under Article 29(2) of the Act shall be the conversion of one ton of comparable CO2 equivalents (tCO2-eq) of greenhouse gas reductions from an external project under paragraph (1) into one emission permit.

(2) Where the Minister of Climate, Energy and Environment certifies greenhouse gas reductions achieved through a clean development mechanism project under Article 12 of the Kyoto Protocol to the United Nations Framework Conventions on Climate Change (including any project implemented within the business place of a business entity eligible for allocation; hereinafter referred to as "clean development mechanism project") pursuant to Article 30(1)2 of the Act, the Minister shall take necessary measures to prevent unjust enrichment from double sale, etc. <Amended on Oct. 1, 2025>

(3) Maximum number of offset emission permits that may be surrendered under the latter part of Article 29(3) of the Act shall be determined in accordance with an allocation plan within 10/100 of the emission permits that shall be surrendered by a relevant business entity eligible for allocation to the Minister of Climate, Energy and Environment under Article 27(1) of the Act. <Amended on Mar. 23, 2021; Oct. 1, 2025>

(4) The offset emission permits neither carried over to the following compliance year under Article 28 of the Act nor surrendered to the Minister of Climate, Energy and Environment under Article 29(3) of the Act shall become ineffective after the end of each compliance year under the latter part of that paragraph. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 48(Feasibility evaluation, approval and revocation of approval of external projects) #

(1) If necessary for certifying greenhouse gas reductions from an external project under Article 30 (1) of the Act, the competent agency by sector may approve the external project after the feasibility evaluation of the relevant external project, consultation with the Minister of Climate, Energy and Environment, and deliberation by the Certification Committee. In such cases, the competent agency by sector may approve the external project by determining the term of its validity. <Amended on Oct. 1, 2025>

(2) Where a person who conducts an external project applies for the approval of the external project pursuant to paragraph (1), the competent agency by sector shall evaluate the feasibility of the relevant external project by reviewing the following matters; provided, the forest carbon offset project whose feasibility has been recognized pursuant to Article 19(3) of the Act on the Management and Improvement of Carbon Sink, from among projects falling under paragraph (1)1 of that Article, shall be deemed to have undergone the feasibility evaluation by the competent agency by sector:

1. Whether any additional efforts are made beyond activities that can be carried out under the general management conditions to reduce greenhouse gases artificially;

2. Whether the effects of greenhouse gas reductions achieved through a greenhouse gas reduction project are sustainable on a long-term basis;

3. Whether a greenhouse gas reduction project can deliver quantifiable greenhouse gas reductions;

4. Whether a greenhouse gas reduction project complies with the standards and methods prescribed in the relevant public notice under paragraph (8).

(3) Where the Certification Committee deliberates on external projects pursuant to paragraph (1), it shall consider the following matters:

1. Sustainability of offset records and possibility of quantifiable verification;

2. Appropriateness of the methods of conducting offset projects and monitoring.

(4) Where any external project approved under paragraph (1) falls under any of the following, the competent agency by sector may revoke such designation after deliberation by the Certification Committee; provided, such approval shall be revoked in cases falling under subparagraph 1:

1. Where the project is approved by fraud or other improper means;

2. Where the relevant project remains unimplemented for one year or longer without good reason;

3. Where the project approved as an external project becomes invalid under the United Nations Framework Convention on Climate Change or any relevant treaty for a reason falling under Article 30(1)2 of the Act;

4. Where it is difficult to deem that the relevant project is part of the additional efforts that go beyond activities that can be carried out under the general management conditions, due to the amendment of statutes or regulations, technological development, etc.

(5) Where the competent agency by sector approves an external project pursuant to paragraph (1) or revokes the approval thereof pursuant to paragraph (4), it shall notify the person who conducts the external project of such fact without delay.

(6) The competent agency by sector shall register the external projects approved pursuant to paragraph (1) and the external projects, the approval of which is revoked pursuant to paragraph (4), in the offset register for the management thereof.

(7) "Projects prescribed by Presidential Decree" in Article 30(1)2 of the Act means clean development mechanism projects and external projects equivalent thereto, and the competent agency by sector shall jointly determine and publicly notify the types of such projects.

(8) Except as provided in paragraphs (1) through (6), detailed matters regarding the standards and procedures for approval and revocation of approval of external projects, such as the term of validity of external projects shall be jointly determined and publicly notified by the competent agency by sector.

Article 49(Certification of greenhouse gas reductions from external projects and revocation of certification) #

(1) A person who intends to obtain the certification of greenhouse gas reductions from an external project under Article 30(2) of the Act shall submit an application prescribed in the public notice of the Minister of Climate, Energy and Environment to the competent agency by sector, accompanied by the following documents: <Amended on Oct. 1, 2025>

1. An emission reductions monitoring report prepared by an external project operator;

2. A verification report prepared by a verification institution;

3. Other data deemed necessary publicly notified by the competent agency by sector as they are deemed necessary for the certification of greenhouse gas reductions.

(2) Where any person who applies for the certification of greenhouse gas reductions from an external project under paragraph (1) is issued a certificate under Article 21(1) of the Act on the Management and Improvement of Carbon Sink, he or she may request that the Minister of Korea Forest Service submit the results of certification and the matters reviewed for the relevant certification to the competent agency by sector. In such cases, the Minister of Korea Forest Service requested shall comply with such request unless there is a compelling reason not to do so.

(3) The competent agency by sector, upon receipt of an application under paragraph (1), shall certify greenhouse gas reductions from an external project, in consultation with the Minister of Climate, Energy and Environment and deliberation by the Certification Committee, in consideration of the matters reviewed for the approval of an external project pursuant to Article 48, the results of certification submitted by the Minister of the Korea Forest Service, and the matters reviewed for the relevant certification pursuant to paragraph (2) of this Article. <Amended on Oct. 1, 2025>

(4) Where the competent agency by sector grants certification under paragraph (3), it shall not certify greenhouse gas reductions from external projects implemented in foreign countries during the first and second commitment periods; provided, the competent agency by sector may certify greenhouse gas reductions, which are generated after June 1, 2016 from clean development mechanism projects under Article 48(7) that domestic enterprises, etc. directly implement in foreign countries, starting from the second commitment period.

(5) Where the certified greenhouse gas reductions from an external project fall under any of the following, the competent agency by sector may revoke the certification after deliberation by the Certification Committee; provided, in cases falling under subparagraph 1, the certification shall be revoked:

1. Where greenhouse gas reductions from an external project are certified by fraud or other improper means;

2. Where greenhouse gas reductions from an external project are generated as a result of performing obligations under this Act or other statutes, or the same overlapping reductions are used in other systems or projects;

3. Where greenhouse gas reductions generated from an approved external project become invalid in accordance with the United Nations Framework Convention on Climate Change or any relevant treaty for a reason falling under Article 30(1)2 of the Act;

4. Where it is difficult to deem that greenhouse gas reductions from the relevant external project are generated through additional efforts that go beyond activities that can be carried out under the general management conditions, due to the amendment of statutes or regulations, technological development, etc.

(6) Where the competent agency by sector certifies greenhouse gas reductions from an external project pursuant to paragraph (3) or revokes the certification pursuant to paragraph (5), it shall notify the relevant person who conducts the external project of such fact without delay.

(7) The competent agency by sector shall register, in the offset register, and manage greenhouse gas reductions from external projects, which have been certified under paragraph (3) or whose certification has been revoked under paragraph (5).

(8) Except as provided in paragraphs (1) through (7), detailed matters regarding the certification of greenhouse gas reductions from external projects, such as standards for domestic enterprises, etc. and standards for projects directly implemented in any foreign nation, and the revocation of the certification shall be jointly determined and publicly notified by the competent agencies by sector.

Article 50(Management and operation of offset register) #

(1) The Minister of Climate, Energy and Environment shall manage the offset register by electronic means so that the certification, etc. of greenhouse gas reductions from an external project may be achieved in a consistent and systematic manner. <Amended on Oct. 1, 2025>

(2)The following matters shall be registered in the offset register <Amended on Oct. 1, 2025>

1. An external project plan;

2. Certification records of greenhouse gas reductions from external projects;

3. Other matters deemed necessary and then publicly notified by the Minister of Climate, Energy and Environment.

(3) Articles 14(1), 15 and 16 shall apply mutatis mutandis to the inspection, disclosure, modification, etc. of information registered in the offset register. In such cases, "emission permits register" shall be construed as "offset register," and "person who has registered his or her emissions trading account" as "person who has registered external projects in the offset register."

Article 51(Penalty surcharge) #

(1) The standard amount of penalty surcharges imposed under Article 33(1) of the Act shall be three times the average market price of emission permits calculated by dividing the sum of the prices of all emission permits traded on an emission permits exchange by the total trading volume in the compliance year in which the obligation to surrender emission permits is imposed.

(2) The Minister of Climate, Energy and Environment shall notify business entities eligible for allocation which fail to surrender emission permits equal to greenhouse gas emissions certified under Article 25 of the Act even after the deadline for the surrender of emission permits under Article 27(1) of the Act of the ground for imposition, estimated amount, payment due date, etc. of a penalty surcharge, and shall provide such business entities with an opportunity to submit opinions within a specified period not exceeding 10 days. In such cases, the deadline for the payment of a penalty surcharge shall be 30 days from the date such penalty surcharge is imposed. <Amended on Oct. 1, 2025>

(3) If a business entity eligible for allocation fails to submit its opinions within the period of submitting opinions under paragraph (2) or the opinions submitted are unreasonable, the Minister of Climate, Energy and Environment shall impose the amount of the penalty surcharge on the business entity eligible for allocation by the payment deadline, as previously notified. <Amended on Oct. 1, 2025>

(4) Where the Minister of Climate, Energy and Environment extends the deadline for payment of a penalty surcharge pursuant to the proviso of Article 29 of the Framework Act on Administrative Regulations, the extended deadline shall not exceed one year from the day following the original payment deadline. <Amended on Dec. 12, 2023; Oct 1, 2025>

(5) Where the Minister of Climate, Energy and Environment allow a person to pay the penalty surcharge in installments under the proviso of Article 29 of the Framework Act on Administrative Regulations, the number of times of payment in installments shall not exceed 8 within a period of 24 months. <Amended on Dec. 12, 2023; Oct 1, 2025>

Article 52(Additional charges for penalty surcharges) #

The Minister of Climate, Energy and Environment shall collect an additional charge equivalent to 12/1000 of a defaulted penalty surcharge for every month from the date the payment deadline expires pursuant to Article 34 (1) of the Act; provided, the period during which an additional charge is collected shall not exceed 60 months.

Article 53(Financial support and tax incentives) #

(1) "Projects prescribed by Presidential Decree, such as projects for the installation of facilities for reducing greenhouse gases and for the development of related technologies" in Article 35(1) of the Act means the following:

1. Projects for developing and distributing technologies, products, facilities, and equipment in relation to greenhouse gas reduction;

2. Projects for measuring greenhouse gas emissions and for constructing systems for the systematic management thereof;

3. Projects for developing greenhouse gas storage technologies and installing storage facilities;

4. Projects for developing greenhouse gas reduction models and advancing statistics on emission levels;

5. Projects for developing technologies to verify and evaluate emission and absorption coefficients of greenhouse gases by sector;

6. Projects for developing and distributing new renewable energy technologies for greenhouse gas reduction;

7. Projects for encouraging energy conservation, energy efficiency, etc., and facility investments for greenhouse gas reduction;

8. Other significant projects related to greenhouse gas reduction deliberated on and recognized by the Allocation Committee.

(2) Where the Minister of Climate, Energy and Environment and the head of a relevant central administrative agency provide support under Article 35(1) of the Act, he or she may prioritize support for projects implemented by small and medium enterprises under paragraph (2) of that Article that are eligible for allocation, to which all emission permits are not allocated gratuitously. <Amened on Oct. 1, 2025>

Article 54(Institutions specializing in trading emission permits) #

(1) Where the Minister of Climate, Energy and Environment designates an institution specializing in trading emission permits under Article 36 (2) of the Act (hereinafter referred to as "institution specializing in trading emission permits"), the Minister shall take into account the links with the National Greenhouse Management System established under Article 36 of the Framework Act. <Amended on Mar. 25, 2022; Oct. 1, 2025>

(2) An institution specializing in trading emission permits shall conduct the following affairs:

1. Surveys and research on reporting and verification under Article 24 of the Act;

2. Surveys and research on the certification of emissions under Article 25 of the Act and the certification of greenhouse gas reductions from external projects under Article 30 of the Act;

3. Other affairs regarding surveys, research, technological development, and international cooperation to link with international carbon markets.

Article 55(Objection) #

(1) A person who files an objection under Article 38(1) of the Act shall state the details, etc. of the disposition and the objection in a written objection prescribed in the public notice of the Minister of Climate, Energy and Environment and shall submit explanatory materials thereon to the Minister of Climate, Energy and Environment. <Amended on Oct. 1, 2025>

(2) Any person who objects to the following dispositions may file an objection with the Minister of Climate, Energy and Environment, accompanied by explanatory materials thereon under paragraph (1) within 30 days from the dates classified as follows. In such cases, Article 38(2) of the Act shall apply mutatis mutandis to the notification of the results of the objection and the extension of the period: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Where a business entity which has submitted an application for voluntary participation under Article 9(5) is denied the designation as a business entity eligible for allocation: the date of receipt of notice of such denial;

2. Where a market maker is requested to make corrections under Article 36(7): the date of receipt of notice of such request.

(3) Any person who objects to the following dispositions may file an objection with the competent agency by sector, accompanied by explanatory materials thereon under paragraph (1), within 30 days from the dates classified as follows. In such cases, Article 38(2) of the Act shall apply mutatis mutandis to the notification of the results of the objection and the extension of the period:

1. Where the approval of an external project is revoked under Article 48(4): the date of receipt of notice of such revocation;

2. Where the certification of greenhouse gas reductions from an external project is revoked under Article 49(5): the date of receipt of notice of such revocation.

(4) Where emission permits are additionally allocated based on the results of handling of the objection under Article 38(1)2 through 4 of the Act, emission permits in reserve shall be used.

Article 56(Fees) #

A person liable to pay fees under Article 39 of the Act shall pay the fees prescribed in the public notice under Articles 16(3) and 33(4) to the Minister of Climate, Energy and Environment. <Amended on Feb. 7, 2025; Oct. 1, 2025>

Article 57(Delegation or entrustment of authority or work) #

(1) The Minister of Climate, Energy and Environment shall delegate the following authority to the head of the Greenhouse Gas Inventory and Research Center pursuant to Article 40 (1) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Surveys and research on schemes for linking with international carbon markets and international cooperation under Article 4(2)7 of the Act;

2. Surveys and research on the calculation of the total emission allowances, etc. under Article 5(1)1 of the Act;

3. Management and operation of the emission permits register and the offset register under Articles 11 and 31 of the Act;

3-2. Filing for registration of emission trading accounts under Article 20 of the Act;

4. Surveys and research on reports and verification of emissions under Article 24 of the Act;

5. Disclosure of information under Articles 15 and 39(6) and (7).

(2) The Minister of Climate, Energy and Environment shall delegate the following authority to the head of the president of the National Institute of Environmental Research pursuant to Article 40(1) of the Act. <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Designation of verification institutions, revocation of designation thereof, and issuance of orders to suspend work and to take corrective measures under Article 24-2(1) and (5) of the Act;

2. Receipt and evaluation of the results of verification under Article 24-2(7) of the Act;

3. Fact-finding surveys under subparagraph 5-2 of Article 37 of the Act;

4. Hearings under subparagraph 2 of Article 37-2 of the Act;

5. Receipt of objections and notification of the results thereof under subparagraph 6 of Article 38 of the Act;

6. Imposition and collection of administrative fines under subparagraph 5 of Article 43 of the Act.

(3) The Minister of Climate, Energy and Environment shall entrust the following affairs to the Korea Environment Corporation established under the Korea Environment Corporation Act under Article 40(2) of the Act: <Amended on Feb. 7, 2025; Oct. 1, 2025>

1. Surveys, analysis, and review of materials necessary to formulate a master plan and an allocation plan under Articles 4 and 5 of the Act;

2. Surveys, analysis, and review of materials related to the following affairs:

a. Designation, revocation of designation, and succession to rights and obligations, of business entities eligible for allocation under Articles 8, 8-2, and 9 of the Act;

b. Allocation of emission permits under Article 12(1) of the Act;

c. Additional allocation of emission permits under Article 16(1) of the Act;

d. Revocation of the allocation of emission permits under Article 17(1) of the Act;

3. Surveys, analysis, and review of materials to calculate the ratio related to holding emission permits in reserve under Article 18 of the Act;

3-2. Preliminary review for registration of an emission trading brokerage company under Article 22-3(2) of the Act and for revocation of registration under paragraph (3) of that Article;

3-3. Fact-finding surveys, inspection, and verifications of violations committed by market participants under Article 22-4(1) of the Act;

4. Surveys, analysis, and review of materials to stabilize emissions trading markets under Article 23 of the Act;

5. Surveys, analysis, and review of materials (including a plan for calculating emissions) to certify greenhouse gas emissions under Article 25(1) and (2) of the Act;

5-2. Establishment and operation of an electronic processing system for conformity assessments under Article 25(3) of the Act;

5-3. Notifying the results of certification of greenhouse gas emissions and filing for registration in the emission permits register under Article 25(4) of the Act;

6. Surveys, analysis, and review of materials to consult with the head of the competent agency by sector during the procedures for approving external projects under Article 48(1) and the procedures for certifying greenhouse gas reductions from external projects under Article 49(3).

(4) The competent agency by sector shall entrust the affairs related to the certification of greenhouse gas reductions from external projects under Article 30 of the Act to the following institutions pursuant to Article 40(2) of the Act, as jointly determined and publicly notified by the competent agency by sector: <Amended on Feb. 22, 2022>

1. The Korea Agriculture Technology Promotion Agency under Article 33 of the Agricultural Community Development Promotion Act;

2. The Korea Energy Agency under Article 45 of the Energy Use Rationalization Act;

3. The Korea Forestry Promotion Institute under Article 29-2 of the Forestry and Mountain Villages Development Promotion Act;

4. The Korea Transportation Safety Authority under the Korea Maritime Transportation Safety Authority Act;

5. The Korea Maritime Transportation Safety Authority under the Korea Maritime Transportation Safety Authority Act;

6. The Korea Environment Corporation under the Korea Environment Corporation Act;

7. The Korea Marine Environment Management Corporation under Article 96(1) of the Marine Environment Management Act;

8. Other institutions determined by the competent authority, which have professional human resources, equipment, etc. necessary to conduct the relevant affairs.

Article 58(Processing of personal identification numbers) #

The Minister of Climate, Energy and Environment, securities finance companies, and emission permits trading brokerage companies may process data containing personal identification numbers pursuant to subparagraph 1-2a2) of Article 2 of the Act on the Use and Protection of Credit Information if it is unavoidable to carry out the duties related to the payment of deposits pursuant to Article 37-6(3). <Amended on Oct. 1, 2025>

[This Article Added on Feb. 7, 2025]

Article 59(Re-examination of regulation) #

Pursuant to Article 8 of the Framework Act on Administrative Regulation, the Minister of Climate, Energy and Environment shall examine the appropriateness of the following matters every 3 years, counting from each base date specified in the following (referring to the period that ends on the day before the base date of every third year) and shall take measures, such as making improvements: <Amended on Oct. 1, 2025>

1. Standards for revoking the allocation of emission permits under Article 29: January 1, 2025;

2. Standards for market stabilization measures under Article 38: January 1, 2025.

[This Article Added on Feb. 7, 2025]

Article 60(Criteria for imposition of administrative fines) #

The criteria for the imposition of administrative fines under Article 43(1) of the Act shall be as specified in Appendix 10.

[This Article Added on Feb. 7, 2025]