South Korea will begin full-scale operation of the Global Verified Carbon Market (GVCM) in 2027, a government-built international carbon market whose credits can serve both voluntary buyers and compliance uses such as national climate targets and aviation offsetting. The detailed implementation plan was discussed at the 274th Ministerial Meeting on International Economic Affairs on October 12, chaired by Deputy Prime Minister and Minister of Finance and Economy Lee Hyoung-il, according to Seoul Economic Daily. For credit buyers and project developers, the plan defines a new supply channel in which host country approval determines what a credit can be used for, and where blockchain records and a national exchange anchor the market infrastructure.
Credits Split Into Approved and Unapproved Classes
The GVCM will issue two types of credit depending on whether the project’s host country has authorized the transfer. Credits with that approval, designated GVCM A, can be used for the investing country’s nationally determined contribution (NDC), for compliance with the international aviation offsetting scheme CORSIA, and for corporate ESG activities, according to Aju Business Daily. Credits without approval, GVCM NA, are limited to ESG activities, though they can be converted into GVCM A if the host country grants corresponding adjustment approval later, per Aju Daily.
Linkage to the domestic emissions trading scheme and the greenhouse gas target management system will be reviewed where additional conditions are met. The government will weigh credit credibility, corresponding adjustments under Article 6 of the Paris Agreement and participation conditions under domestic law, per Aju Business Daily. It will also consult relevant bodies so the credits can be applied to CORSIA and other overseas regulatory uses.
The renaming signals the ambition. The market’s name was changed from Global Voluntary Carbon Market to Global Verified Carbon Market because the voluntary label suggested a narrower use than the government intends, according to Edaily.
Blockchain Records, KRX Trading and a Digital Asset Option
Core credit data will be recorded on a blockchain, including the project operator, the host country, a unique identification number, the applied methodology and reduction volumes, while other data sits in a conventional database, according to Edaily. Issuance will begin in standard electronic form. Parallel issuance as digital assets will be reviewed later based on issuance and trading volumes, the progress of digital asset legislation and market trust, per Aju Daily.
Trading will prioritize the Korea Exchange (KRX), which has experience running the domestic emissions exchange. But constraints on trading hours, eligible participants and foreign exchange rules limit 24-hour trading and participation by individuals and foreigners, so digital asset trading methods remain under consideration for a later stage, per Aju Daily. The government will also discuss converting emission reductions generated by World Bank and Green Climate Fund projects into GVCM credits, according to bloomingbit.
Developing Countries Sit in the Governance
The issuing body will consist of a board, a technical oversight committee and a secretariat. The board, made up of member countries, sets policy direction, while the technical oversight committee decides on credit issuance, according to Aju Business Daily. Developing countries will sit on the board, and experts they recommend will take part in issuance decisions on the technical committee, a design intended to reflect host country needs and policies, per Edaily. The Global Green Growth Institute (GGGI) will serve as interim secretariat until a standalone body is formed at official launch.
The design answers a persistent criticism of international carbon markets: that host countries, mostly developing economies, have little say in the standards applied to projects on their territory.
A Market Sized at Up to $250 Billion by 2050
The government’s case for building the market rests on projected growth and on the credibility gap that has dogged carbon credits. The carbon credit market is expected to reach $7 billion to $35 billion by 2030 and $45 billion to $250 billion by 2050, according to an MSCI forecast cited by Edaily. The absence of standardized international criteria has kept credit credibility and real reduction impact under dispute, which the GVCM architecture is meant to address.
The plan builds on a memorandum of understanding signed with the UNFCCC and GGGI in May last year and a roadmap announced in December, under which standards for measurement, reporting and verification (MRV) and methodologies were scheduled for 2026, according to News1 via Daum.
What Happens Between Now and Launch
The government plans to secure interested participating countries this year, confirm letters of intent at COP31 in November 2026, and form the issuing body in 2027 for full operation, according to Aju Daily. Candidate project areas include nature-based projects such as mangrove forest creation, agricultural waste treatment, methane capture and energy efficiency. Specific projects will be defined only after participating countries are confirmed, since reduction projects require host country permits, per Aju Business Daily. Seoul will also promote the initiative to domestic and international stakeholders at a climate investment forum in December, per Edaily.
Three things matter for buyers and investors from here. First, which countries sign on at COP31, since host country authorization is the mechanism that separates compliance-usable GVCM A credits from ESG-only supply. Second, the review of domestic ETS linkage, which would open a regulated demand channel inside Korea. Third, whether the digital asset issuance track survives the legislative review, a decision that will shape whether the market can eventually trade around the clock with foreign retail participation.
