1.

Climate and Energy
 

(1)

NDC Roadmap and Reform of the Carbon Neutrality Implementation Framework
 
The MCEE plans to develop an annual roadmap by industry sector to achieve Korea’s Nationally Determined Contribution (NDC) target for 2035, which was finalized in 2025. Additionally, the MCEE will formulate the Second Basic Plan for Carbon Neutrality and Green Growth (2026–2045) as a long term blueprint for achieving the 2050 carbon neutrality goal, pursue amendments to the Framework Act on Carbon Neutrality and Green Growth, and prepare the “Korean Green Transformation (K-GX) Strategy” in the first half of this year. In addition, a new National Climate Science Institute will be established as a dedicated hub for climate and energy policy research and analysis.
 

(2)

Green Finance Incentives: Carbon Contracts for Difference (CCfD) and Production Tax Credits
 
With a view to expanding investment in carbon neutrality, the MCEE plans to enact the Act on Carbon-Neutral Industries within this year. This proposed legislation is intended to incorporate a Carbon Contract for Difference (CCfD) mechanism—which guarantees a floor carbon price for low-carbon facilities and technologies—as well as a production tax credit as a form of fiscal tax support. Green finance extended to activities aligned with the Korean Taxonomy (K-Taxonomy) will be closely integrated with transition finance guided by the Financial Services Commission. Transition finance, slated for introduction in the first half of 2026, will be designed to channel funding toward low-carbon transition investments by high-carbon industries.
 

(3)

Energy Transition: Accelerating Renewable Energy Supply and Building a Flexible Power System
 
The MCEE has announced its commitment to achieving the target of 100 GW of renewable energy capacity by 2030 and on expanding the necessary grid infrastructure. The Renewable Energy Act is expected to include, inter alia, the rationalization of setback distance requirements, conversion of the Renewable Portfolio Standard (RPS) to a capacity-based target assignment system, and a shift toward a unified long-term fixed-price contract mechanism for new installations. With respect to grid development, the MCEE is pursuing expanded flexible grid connection, the buildout of distributed power networks, and the maximum utilization of existing infrastructure. The government also intends to reform the electricity market to accommodate zero-carbon sources such as renewable energy, advancing in conjunction with the formulation of the 12th Basic Plan for Long-Term Electricity Supply and Demand.
 

2.

Water Management
 

(1)

Enhanced Pollutant Monitoring and Total Load Management
 
The MCEE plans to comprehensively strengthen the water quality monitoring and total pollutant load management framework. Specific measures include: expanding the network of water quality monitoring centers across all four major river systems by 2027; establishing a legal basis for the measurement and public disclosure of trace and unregulated substances through amendments to the Act on the Conservation of the Water Environment; and developing an implementation plan for total organic carbon (TOC)-based pollutant load management. With respect to per- and polyfluoroalkyl substances (PFAS) in tap water, the MCEE is prioritizing expanded measurement and monitoring, including improvements to analytical capabilities (lowering the detection limit from 5 ng/L to 1 ng/L). However, the government has not identified plans to introduce numerical regulatory concentration limits for PFAS at this stage.
 

(2)

Economic Sanctions for Soil Contamination
 
The MCEE intends to reorient the sanctions regime for non-compliance with contaminated land remediation obligations, moving away from criminal penalties and toward financial and economic sanctions. Specifically, the MCEE is currently reviewing the introduction of monetary sanctions, such as administrative fines, for failure to carry out required soil remediation.
 

3.

Air Quality
 

(1)

Streamlining Regulatory Overlap Between the Total Emissions Cap System and the Integrated Permitting Regime
 
The MCEE plans to address the regulatory overlap between the facility-level total air pollutant emissions cap system (which is volume-based) and the integrated environmental permitting regime (which is concentration-based) to reduce the administrative burden on regulated entities and improve overall efficiency of environmental management. The MCEE is considering specific measures such as consolidating administrative intake channels and shortening permit processing timelines. The government also expects to expand the scope of industries subject to integrated permitting in phases beyond the current 20 sectors.
 
In addition, the MCEE is promoting the entry of Air Quality Partnership Agreements where large corporations would support SMEs in installing air pollution control facilities. Large corporations participating in such agreements will receive incentives including additional credit in the Green Business designation evaluation, recognition in the mutual growth index assessment, and credit for off-site emission reduction activities.
 

(2)

Management of Refrigerants and Methane Emission Sources
 
The MCEE plans to enact the (tentatively named) Refrigerant Management Act to establish comprehensive lifecycle management of refrigerants — from use through disposal. Given that refrigerants are short-lived climate and air pollutants with high global warming potentials (GWP), the new legislation will systematize obligations across the full chain of refrigerant recovery, recycling and disposal. Furthermore, technology development programs targeting the development of heat pumps using low-GWP refrigerants and the expansion of waste refrigerant processing capacity are set to commence over the 2026–2029 period, with KRW 4.1 billion allocated for 2026.
 
Regarding methane emission sources, the MCEE is pursuing a combined ground-based and low-altitude aerial survey approach targeting major sectors including LNG power generation and petrochemicals. The MCEE also plans to establish industry-specific technical support teams to assist in diagnosing root causes and driving facility-level improvements.
 

4.

Resource Circulation
 

(1)

EPR Obligations to Cross-Border E-Commerce Platforms
 
Under the current Extended Producer Responsibility (EPR) framework, recycling obligations apply only to businesses that manufacture or import goods domestically. As a result, packaging materials and products imported and distributed in Korea through cross-border e-commerce platforms have not been subject to the recycling obligation regime. To address this regulatory asymmetry, the MCEE is advancing a proposal to subject operators of cross-border online shopping platforms to EPR obligations.
 

(2)

Waste Regulatory Exemption Zones in Industrial Complexes
 
The MCEE is pursuing the establishment of dedicated “Waste Regulatory Exemption Zones” to bolster the competitiveness of corporate waste recycling operations. Under the envisaged framework, where process by-products generated within an industrial complex or at an individual facility are recycled on-site in a closed loop, the full range of applicable waste regulations — including collection and transportation, handover and receipt, and recycling requirements — would be waived. In parallel, “ Decarbonization Circular Economy Leadership Agreements” are to be concluded with companies and industrial complexes across a range of sectors including steel, petrochemicals, semiconductors and food processing, with participating companies to receive support in the form of operational assessments and implementation planning assistance.
 

(3)

Enhancing the Effectiveness of Circular Use: Differentiated Support by Recycling Type and Introduction of Korean Eco-Design Requirements
 
The MCEE expects to recalibrate circular economy policy to prioritize material recycling and chemical recycling over thermal recycling (i.e., energy recovery through incineration). Specifically, the MCEE plans to either lower the cap on EPR subsidies for thermal recycling or gradually increase the subsidy gap between different recycling methods. In this context, the MCEE is utilizing a targeted regulatory sandbox to promote pyrolysis (chemical recycling) and verify quality standards for feedstocks accepted at pyrolysis facilities.
 
Following the entry into force of the EU’s Eco-design for Sustainable Products Regulation (ESPR) in July 2024, the MCSS is developing a Korean equivalent eco-design regulatory framework and aims to submit a bill to the National Assembly within this year.
 

5.

Environmental Health and Chemicals
 

(1)

Full Life-Cycle Chemical Safety System
 
The MCEE plans to designate substances of significant international concern, such as per- and polyfluoroalkyl substances (PFAS) and polychlorinated biphenyls (PCBs) as regulated substances to facilitate their market phase-out. The MCEE will designate highly toxic substances as “substances hazardous to human health and ecosystems” after their hazard assessment and enhance management controls. In addition, the MCEE plans to establish a permanent market surveillance and analysis system for chemical product harm.
 

(2)

Extension of Statute of Limitations for Environmental Damage
 
The MCEE is pursuing an extension of the statute of limitations applicable to violations of the Act on the Safety Management of Household Chemical Products and Biocides. Given the long latency period of chemical-related injuries, the MCEE is considering extending the current seven-to-ten statute of limitations by an additional ten years in cases when supported by scientific evidence.