Seoul: South Korea will expand its greenhouse gas emission permit trading system this week, allowing transactions like stocks, the climate ministry said Sunday. Starting Monday, financial institutions, such as banks and insurance firms, and pension funds will be allowed to open accounts with securities firms and conduct emission permits trading through their trading platforms, according to the Ministry of Climate, Energy and Environment.

According to Yonhap News Agency, until now, emission permits have only been allowed to be traded directly through the Korea Exchange, the main stock market operator, and only by designated companies. Trading hours will be from 10 a.m. to 12 p.m., while permit auctions will run for an hour from 2 p.m. and over-the-counter trading for three hours starting from 2 p.m.

The ministry stated that the new trading system for emission permits is expected to make transactions more convenient for companies and increase trading volumes through the participation of financial institutions. The new system will also pave the way for the introduction of a futures market for emissions trading and related financial products, it added.