South Korea

높아지는 EU 탄소국경...기업 탄소데이터 관리, 시험대 오른다[2026 ESG 키워드④]

Hankyung | Local Language | News | Dec. 5, 2025 | Regulation

The European Union's Carbon Border Adjustment Mechanism (EU CBAM) began as a pilot in October 2023 and will enter full implementation in 2026. This policy imposes additional costs on carbon-intensive products imported into the EU, aiming to protect EU industries from imports originating in countries with lower greenhouse gas regulations and to prevent carbon leakage. Starting January 1, 2026, companies must purchase certificates and make payments based on their carbon emissions annually, with stricter verification requirements. Initially, CBAM will apply to steel, cement, aluminum, fertilizers, hydrogen, and electricity, with plans to expand to other products.

CBAM costs are calculated by comparing the EU carbon price with the carbon price already paid in the exporting country, specifically Korea’s emissions trading system (K-ETS). Companies must obtain CBAM authorized declarant status to export affected goods to the EU, and they need to establish precise carbon emission measurement systems, reporting emissions per product unit rather than by installation as in Korea's ETS. From 2026, companies must submit plant-measured data for verification or face fines and potential export blocks. An internal measurement, reporting, and verification system (MRV) covering emissions from raw material extraction to product manufacturing is required, including data from the supply chain, all certified by an EU-recognized verification body.

The financial burden for Korean companies could rise significantly, with estimated CBAM certificate costs increasing from about EUR 90 million (KRW 134.9 billion) in 2026 to EUR 340 million (KRW 509.6 billion) by 2035. The steel and aluminum sectors are expected to be most affected. Small exporters might benefit from a regulatory amendment changing exemption criteria from a "less than EUR 150 per case" threshold to an "annual cumulative weight of 50 tonnes or less," potentially lowering administrative burdens. The upcoming changes require immediate preparation from companies and call for comprehensive government support to manage the transition.

Yonhap | English | News | Dec. 5, 2025 | North Korea

South Korea's Deputy Foreign Minister Chung Eui-hae urged the Association of Southeast Asian Nations (ASEAN) to support Seoul's efforts to resume dialogue with North Korea during a meeting with ambassadors from 11 ASEAN member states in Seoul on December 3, 2025. Chung highlighted appreciation for ASEAN leaders' backing of President Lee Jae Myung's "END" initiative, which aims to end hostility and promote peace with North Korea, emphasizing its components of "exchange," "normalization," and "denuclearization."

Chung also emphasized South Korea’s commitment to strengthening its comprehensive strategic partnership with ASEAN by enhancing cooperation in trade, security, and people-to-people exchanges. The meeting underscores South Korea’s ongoing diplomatic efforts to deepen ties with ASEAN and advance its policy toward peace and stability in the Korean Peninsula.

Yonhap | English | News | Dec. 5, 2025 | Geopolitical Conflict and Disputes

President Lee Jae Myung announced that securing U.S. approval for South Korea to build nuclear-powered submarines was the key outcome of his recent summits with former President Donald Trump. Lee expressed a preference for domestic construction of the submarines, citing economic and security benefits, despite Trump suggesting the submarines be built at the Philadelphia shipyard operated by South Korea's Hanwha Ocean. Lee emphasized that the acquisition enhances South Korea's strategic flexibility and autonomy.

Lee dismissed concerns that South Korea’s plans might violate its nonproliferation commitments, clarifying that nuclear submarines do not involve nuclear weapons or reprocessing that would contribute to proliferation. He reaffirmed South Korea’s dedication to the denuclearization of the Korean Peninsula, highlighting that a nuclear build-up would be counterproductive and likely lead to severe economic sanctions.

Regarding North Korea, Lee urged renewed dialogue between Washington and Pyongyang, noting that the U.S. plays a crucial role in providing security guarantees sought by North Korea. Lee signaled willingness to facilitate conditions for talks, including proposing scaling down joint South Korea-U.S. military drills, to create a conducive environment for communication and cooperation.

Lee addressed regional tensions, suggesting that South Korea could mediate between China and Japan to reduce conflicts without taking sides. He stressed the importance of stable bilateral ties with China and expressed hopes to hold summit talks with President Xi Jinping soon. While recognizing historical issues remain a sensitive point with Japan, Lee advocated pursuing economic, security, and cultural cooperation despite these challenges.

On Russia’s potential influence on North Korea, Lee viewed its role as limited due to Russia’s ongoing war against Ukraine. He also refrained from apologizing for past South Korean government actions concerning anti-Pyongyang leaflets, citing concerns over internal ideological conflicts.