The Korean green classification system (K-Taxonomy) was established in 2021, to define and categorise sustainable economic activities, providing clear principles and standards for green economic activities for investors and companies. It is meant to enable the financial industry to smoothly develop green finance without worrying about greenwashing. Through this, it is expected that confidence in green finance will be increased and the inflow of green funds into green businesses will be promoted, forming favourable conditions for the growth of the green market.
The revisions in December 2024 included the addition of green economic activities relating to the sustainable conservation of water; transition to a circular economy including refill stations and waste recycling technology; pollution prevention and management; and biodiversity conservation.
