July 2022: Korean Market Update

KAU21 allowances have been on an all-time high volatility in June with prices playing inside a significant intraday range of ₩12,050 to ₩22,000. The first two weeks of the month was dominated by surplus sellers and aggressive buying in the latter half of the month.


In the fourth week of June, the ETS enforcement regulations was amended to increase the market maker’s holding limit from 1 million tons to 1.5 million tons, seen to be a measure to calm market anxiety on their worries of allowances cancellation which has plagued the market since the start of the pandemic.


KAU21 allowances can be traded until the first week of August, a compliance extension given for companies that have filed for objections. 


(published: 4 July 2022)