On 15 April 2026, the South Korean government, together with 30 major corporations including Samsung Electronics, Hyundai Motor, SK Group, LG Energy Solution, POSCO, and KEPCO, launched the “K Voluntary Carbon Market Alliance” (K VCMA). The alliance is a private public partnership aimed at transforming carbon reduction from a regulatory cost into a revenue generating business model.

The K VCMA will issue high integrity carbon credits from domestic offset projects that are not covered by the mandatory Korean ETS. Eligible project categories include: reforestation of degraded forest land (targeting 150,000 hectares over 5 years), methane destruction from landfills and livestock manure, industrial waste heat recovery, and carbon capture from cement kilns. A “Carbon Credit Integrity Council”, composed of academic experts, NGOs and international verifiers, will review each project methodology.

The first batch of credits (estimated 5 million tCO₂, to be issued in December 2026) will come from reforestation projects in the fire ravaged eastern coastal region (Gangwon and Gyeongsang provinces), where 80,000 hectares of forest were destroyed by wildfires in 2025. Planting fast growing native species with high carbon sequestration rates is expected to generate credits at a cost of about KRW 25,000 (USD 19) per tonne, which will then be sold to alliance members.

The alliance also announces a long term goal: to establish a unified carbon exchange by 2028 that will trade both mandatory K ETS allowances and voluntary credits. This “Korean Carbon Exchange” aims to create a transparent price signal and attract international buyers. The government is considering whether to allow foreign entities to participate from 2029 onwards.

Hyundai Motor’s CEO, speaking at the launch, said: “For years we saw carbon as a liability. Now, through the K VCMA, we can generate profit by restoring forests and reducing methane while offsetting our unavoidable emissions.” Environmental activists welcomed the emphasis on high integrity credits but warned against “greenwashing” – ensuring that companies use credits only for residual emissions after deep internal cuts. The alliance has committed to annual third party audits of all credit use.

The government expects the K VCMA to generate KRW 5 trillion (approx USD 3.8 billion) in annual trading volume by 2030, and to create 25,000 jobs in the forestry, monitoring, and verification sectors.