March 2019: Korea ETS Auction and Market AnalysisDOWNLOAD
Korea Emission Trading Scheme
Korea ETS Auction
The Korean government has amended the auction guidelines limiting the bidding amount of participating bidders from 30% to a range between 15% to 30%.
In the recent auction, 409,500 tons of permits were won out of the offered 550,000 tons at a clearing price of KRW 26,450 - lower than the secondary market's KAU18 price.
The volume of market transactions is expected to be limited until the end of March, and for the time being, KAU18 prices are likely to remain at current levels.
In Phase 2, supply shortage continues. There is a plan to sell allowances by companies holding surpluses but companies with deficiencies still face difficulties in acquiring the permit in the market as large-scale transactions are made through negotiations and OTCs.