1.

Economic Activities in Promotion of GHG Reduction
 

(1)

Industry
 

–

Aligned with South Korea’s 100 Core Carbon Neutrality Technologies, the revision upgrades recognition criteria for core GHG reduction technologies across 17 fields.
 

–

Recognition criteria for existing economic activities now reflect the product emissions-efficiency benchmark (“BM”) allocation coefficients from the 4th Planned Period of the Greenhouse Emission Trading Scheme (“ETS”).

–

Semiconductor and display manufacturing have been added as new economic activities, reflecting the expansion of BM allocations.
 

(2)

Power Generation/Energy
 

–

Previously consolidated economic activities are now categorized individually ((i) solar photovoltaics, (ii) concentrated solar power (“CSP”), (iii) wind power, (iv) hydropower, (v) ocean energy, (vi) geothermal energy, (vii) hydrothermal energy) by generation type to better reflect unique source characteristics.

–

With the inclusion of waste energy under the Enforcement Decree of the Act on the Promotion of the Development, Use, and Diffusion of New and Renewable Energy, the construction and operation of waste-to-energy and combined heat and power (“CHP”) facilities have been newly classified as eligible economic activities.
 

–

The construction and operation of facilities for Sustainable Aviation Fuel (“SAF”) production have been added under “Bioenergy Manufacturing Activities.” Additionally, a new category for “Clean Methanol Manufacturing” has been established, encompassing both green and blue methanol.

–

Furthermore, new categories have been created for the installation and operation of heat pumps that utilize low-carbon thermal sources, such as renewable energy (geothermal, hydrothermal, etc.) or aerothermal energy.
 

(3)

Transport
 

–

The scope has been expanded to include the manufacturing and adoption of pollution free motorized bicycles (including personal mobility devices). Additionally, activities related to the construction of carbon-reducing aviation infrastructure and the development of supply infrastructure for low-carbon fuels (e.g., bio-marine fuel and SAF) have been added.
 

–

To improve industry feasibility, the existing exclusion criteria for “end-of-life vehicle (“ELV”) recycling rates” has been replaced with the “Annual Recyclability Rate.”
 

(4)

City/Building
 

–

The recognition criteria for Zero-Energy / Green Buildings (1-C-(3)) and Low-Carbon Internet Data Center (“IDC”) Construction and Operation (1-C-(5)) have been strengthened. Specifically, the required G-SEED (Green Standard for Energy and Environmental Design) rating for public buildings has been raised from Level 4 to Level 3.

–

In addition to domestic certification, international standards (e.g., Leadership in Energy and Environmental Design) are now recognized as valid eligibility criteria.
 

(5)

Agriculture
 

–

To encompass low-carbon livestock products, the definition of “low carbon agriculture” has been revised to: “Activities that apply technologies or methods contributing to greenhouse gas (“GHG”) reduction during the processes of crop cultivation and livestock farming.”

–

Additionally, the scope of eligibility has been expanded. Low carbon agricultural and livestock activities now qualify if they have obtained a “Registration Approval for Voluntary GHG Reduction Projects in Agriculture and Rural Areas” or have been validated for External Project Feasibility under Article 13 of the Guidelines for Feasibility Assessment of External Projects and Certification of Reductions.
 

(6)

Carbon Dioxide Capture
 

–

To better reflect the operational flow of carbon management, economic activities have been reorganized into the following sequence: Carbon Capture → Transportation → Storage → Utilization.

–

A new category has been established for activities involving the development of technologies that utilize captured CO₂, as well as the construction and operation of facilities required for the production of CO₂-derived products.
 

(7)

Forestry
 

–

To promote forestry activities as a means of carbon sequestration and mitigation, two new categories have been established: (i) the creation of forest based carbon sinks and (ii) the utilization of domestic timber products.
 

2.

Economic Activities for the Objective of Climate Change Adaptation

For the “climate change adaptation” objective, the MCEE has reorganized existing economic activities into four thematic areas and 11 specific economic activities. This restructuring comprehensively incorporates National Basic Plans.
 

1.

Preparedness for Financial institutions

Following the revision of the K-Taxonomy and the upcoming update to the Green Credit Management Guidelines (for applying the K-Taxonomy to financial institutions’ lending operations, scheduled for release in early 2026), financial institutions must upgrade their green financial product management systems to enhance the reliability of their product design and screening processes.
 
By integrating the revised K-Taxonomy into green lending systems and redefining granular, practical checklists, financial institutions can minimize subjective judgment and establish objective, consistent screening standards. Furthermore, in accordance with the “Transition Finance Guidelines” announced in February 2026, it is imperative to establish a comprehensive management system encompassing both taxonomy-based and strategy-based transition finance by integrating the Green Credit Management System with transition finance appraisal and post-monitoring processes. This will ensure an effective response to Korea’s Green Transformation (“K-GX”) initiative.
 

2.

Preparedness for Climate Disclosure

The International Financial Reporting Standards S2 (“IFRS S2”) and the Korea Sustainability Standards Board No. 2 (KSSB Statement No. 2) require organizations to disclose the amounts and percentages of assets or business activities associated with climate-related transition risks, physical risks, and opportunities. Under the revised K-Taxonomy, companies subject to mandatory climate disclosure can identify eligible economic activities within their portfolios and utilize the resulting Revenue, Capital Expenditure (“CAPEX”), and Operating Expenditure (“OPEX”) data to report on climate-related opportunities.
 
However, greenwashing risks may arise when companies identify these eligible activities based solely on internal judgment. Therefore, companies must engage legal and technical experts to verify compliance with detailed criteria and ensure that all calculated figures maintain accounting integrity.
 
Notably, as the government has specified core GHG reduction technologies via the “Top 100 Core Technologies for Korean Carbon Neutrality” in this revised K-Taxonomy, companies must assess their eligibility by understanding of the specific core technologies and Carbon Neutrality Technological Innovation Roadmaps relevant to their sectors.