From 2019, among other major changes for Phase II (2018-2020) of the Republic of Korea Emissions Trading System (KETS), liable entities are able to purchase allowances from monthly auctions. The first auction took place on 23 January 2019. Four companies successfully bid for all available allowances (550,000 KAUs) for a settlement price of KRW 25,500 (USD 22.53). The second auction took place on 13 February, again with all 550,000 allowances available being sold at a settlement price of KRW 27,050 (USD 23.95). New rules were introduced for the third auction that reduced the maximum amount of allowances a single entity could purchase from 165,000 (30% total auction volume) to 82,500 (15% total auction volume). The auction took place on 13 March. Nine bids were made with five being above the reserve price. Given the limits of purchase, this meant that the auction was not fully subscribed. Unsold allowances are added to the April auction volume.
