Korea Joins the I-REC Market: What It Means for Buyers

South Korea officially introduced I-RECs as an addition to its domestic REC system in April 2025. The country already operates a national system that includes both compliance and voluntary mechanisms, but certain types of generation, such as onsite self-consumption from rooftop solar, have remained outside its scope. I-RECs are being brought in to fill that gap.

In this blog, we’ll explore how the two systems coexist, which projects may qualify for I-RECs, what policies make this possible, and what this means for companies navigating Korea’s evolving renewable energy market.

Why the Domestic REC System Isn’t Enough

Korea’s domestic REC system was originally built to support the national Renewable Portfolio Standard (RPS), which requires power producers to supply a growing share of electricity from renewable sources. RECs are issued for renewable electricity that’s fed into the grid and traded through KEPCO or the Korea Power Exchange.

As corporate demand for renewables grew, companies began asking for a way to voluntarily purchase Korean-issued RECs, which are often called K-RECs. In response, the government opened access to surplus RECs from the compliance pool. These are now available for voluntary claims but in limited quantities. With more companies joining RE100 and setting Scope 2 targets, demand has quickly outpaced supply, driving up prices and making it hard for companies to participate.

The limitations go deeper. Korea’s REC system only credits renewable electricity that’s sold to the grid. This means any clean energy generated and consumed on-site, like rooftop solar, doesn’t qualify. Even though the electricity is renewable, companies can’t claim it under the current rules. For corporate buyers, especially those investing in their own installations, this has left a major gap.

For a breakdown of how Korea’s REC system works and why supply is limited, read our blog on accessing Korean RECs.

How I-RECs Fit Into Korea’s REC Framework

I-REC issuance in Korea is being introduced with clear boundaries. The I-REC Standard Foundation, which oversees the system globally, has confirmed that it will not overlap with Korea’s domestic REC framework.

Any renewable electricity that qualifies for K-RECs must remain in the national system. This includes power sold to the grid or surplus electricity from self-generating facilities that’s delivered to KEPCO or KPX. These types of generation are not eligible for I-RECs.

I-RECs in Korea will be limited to renewable projects that the domestic REC system does not cover. That is mainly onsite and behind-the-meter installations. If a facility uses part of its electricity on-site and exports the rest, only the self-consumed portion may be eligible for I-RECs. In such cases, separate metering is required to clearly track each portion.

All eligible projects must meet the I-REC Standard’s core requirements, including proper metering, regular audits, and registration of each device. The local I-REC issuer will also verify that the asset is not already registered in the national REC system, helping prevent any risk of double counting.

Projects that received government subsidies may face additional checks because Korean regulations often assign part of the environmental attributes to the state. In those cases, the issuer may ask for documentation to confirm that the asset owner holds the rights to the portion they plan to certificate.

For more details on the issuance process, see our I-REC guide.

Who Can Issue I-RECs in Korea

While the I-REC Standard allows a wide range of renewable technologies (solar, wind, hydro, biomass), Korea’s rollout is starting with a narrow focus. Only projects that cannot participate in the domestic REC system are eligible. That means generation used entirely on-site or in off-grid systems.

The first confirmed focus is rooftop and self-use solar. Although renewables make up just 9% of the country’s electricity supply, there’s a growing base of solar installations that don’t qualify for the national REC system. According to the I-REC Foundation, South Korea has around 3.2 gigawatts of off-grid or onsite solar capacity that could be eligible for I-REC issuance.

Other self-consumption projects may also become eligible in the future, provided they meet the necessary criteria and remain outside the domestic REC scheme.

How I-RECs Got the Green Light in Korea

The groundwork for this transition was laid over 2023 and 2024, as interest in I-RECs grew among RE100 companies and market stakeholders. One of the key questions in introducing an international certificate system to Korea was whether existing laws would allow it. After careful review, stakeholders found no legal or regulatory barriers, as long as I-RECs do not overlap with the domestic system.

The Corporate Renewable Energy Foundation (CREF) led the effort to bring the I-REC Standard to Korea, focusing on projects that fall outside the RPS. In response, I-TRACK conducted a formal country assessment and submitted its findings in late 2024.

On April 2, 2025, the I-TRACK Foundation officially approved South Korea as an I-REC(E) issuing country. The next step is implementation: appointing a local issuer and setting up registry infrastructure. While that process is underway, the legal structure around voluntary certificates is still taking shape. Government officials have acknowledged the need for a clearer framework to oversee this “private REC market,” which operates outside the state-run system.

Why I-RECs Matter for Corporate Buyers

The introduction of I-RECs opens up new opportunities for companies operating in Korea. Here’s what this could mean in practice:

1. More renewable supply for corporate use  
   I-RECs bring previously untapped generation into the market, without pulling from the domestic REC pool.
2. A solution to unmet RE100 demand  
   Many Korean companies installed solar panels on-site but couldn’t get certificates. I-RECs now allow them to track and claim that electricity toward their targets.
3. Opening access for mid-sized companies  
   Until now, high costs and limited options kept many companies out. I-RECs make renewable sourcing more accessible beyond just large corporates.
4. Private-led renewable expansion  
   I-RECs create a voluntary market that helps scale renewables without relying on government subsidies or mandates.

Conclusion

The introduction of I-RECs in Korea adds a new layer to the country’s renewable energy framework. By complementing the existing REC system, I-RECs create new opportunities for companies to track and claim clean electricity that was previously left out. For businesses generating their own power or looking for credible local options beyond the limited K-REC supply, this shift gives more companies the tools they need to act on their renewable energy goals using locally generated, verifiable clean power.