The revisions, which will enter into force on Feb 7 next year, comes after South Korea pledged last year to overhaul its carbon market. The system has been struggling with sluggish prices spurred by persistent oversupply of permits, 90% of which are allocated for free until next year.
South Korea will expand participation in its emissions trading system as part of a set of reforms aimed at improving its stability and impact, according to the Ministry of Environment.
The Asian nation will open up its carbon market to a wider group of participants, including asset managers, banks and insurers, the ministry said in a statement. It will also tighten regulations on scrapping excess carbon credits, according to the statement.
