South Korea Emission Trading System - Can an individual or institution buy and s

Q1)  Can an individual or institution trade KAU(Korean Allowance Unit) undher Korean Emission trading system?
-> Unlike EU ETS, private individuals can not trade KAU(Korean Allownace Unit, Korean Carbon Emssion Credit). Korean Emission trading system only allows liable entities and few market makers to trade the carbon credits. 
(Only the liable entities and government-run bank were allowed to trade the credits until phase2(2015-2020). However, to improve market liquidity, Korean government allowed security firms to trade the credits from the end of the phase 2(2020~) 

Q2) I am doing a business related to greenhouse gas reduction. Can’t I convert the reduction into carbon credits and sell them!?
-> Yes, if you are not a liable entities, you cannot do this. However, you can buy and sell with ‘external business reduction performance (KOC)’ rather than carbon emissions certificate (KAU), but if you are not a liable entities, it is very difficult to convert this external business reduction performance (KOC) into carbon emissions credit (KAU).

Q3) Who can trade KAU(Korean Allowance Unit, Carbon Credit) under K-ETS?
-> Liable entities, Market Makers and Brokers(Security Companies) are able to trade the credit(KAU). Liable entities are the companies who emit more than 125,000ton CO2(eq) for year or have the facility which emits more than 2,500 ton CO2(eq) for year. And Market Makers are government rrun banks and several security companies who have a contract with the governmnet. Finally the Brokers are the securities companies registered with the government.

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Why Korean ETS Market is limited to participate? 

Only liable Entities who emit grennhouse gases above a certain level(companies with an average annual greenhouse gas emissions of more that 125,000 tons CO2(eq) over the past 3 years or companies who have a facility with more than 25,000 tons of green house gases) can paticipate in the Emssion Trading Market Since they have submission obligations 
Currently more than 700 companies are mandatory participating in the ETS market in South Korea. And the ETS's focus is on achieving the company's reduction goal, rather than financial investment activation. On the other hand, the liable entities prefer ilmitied market since they concerns about price unstability.

This is the reason why, unlike other financial product markets, private individualrs participation is limited.

However, recently Korean government annouced "K-ETS Market Improvement roadmap('23.9)" and mentioned the possibility to allow private individuals to trade the Emission Credits. But time is needed as the reviion of laws and system maintenance should come first.