Korea’s strong economic growth has been driven by manufactured exports produced by large firms. High population density has exacerbated environmental challenges. This chapter provides a snapshot of key environmental trends in Korea since 2000. It highlights the progress made in decoupling economic activity from environmental pressures. The chapter presents the main economic and social developments, then examines Korea’s progress in reducing the energy and carbon intensity of its economy, in making the transition to a resource-efficient economy and in managing the natural asset base. The chapter also summarises key policy developments in specific areas, including energy, climate change, air, water and biodiversity.

Korea has made significant progress in environmental governance over the past decade, including introducing strategic environmental assessment, reforming environmental permitting and strengthening environmental standards. This chapter examines Korea’s environmental governance framework for environmental management, including mechanisms for horizontal and vertical co-ordination. It reviews the regulatory framework for environmental management, including for environmental impact assessment, land use planning and permitting, as well as enforcement and compliance assurance. It also briefly addresses the promotion of environmental democracy through public participation, access to information and environmental education.

Korea has created a strong institutional framework for green growth but faces challenges in making the transition to a more environmentally sustainable economic model. This chapter reviews efforts to mainstream environmental considerations into economic policy and to promote green growth. It analyses the use of taxation and other economic instruments to pursue environmental objectives and discusses environmentally harmful subsidies. The chapter examines efforts to scale up environment-related and low-carbon infrastructure, expand related markets and support eco-innovation as a source of economic and employment growth. It also reviews progress in mainstreaming environment in development co-operation programmes, promoting corporate social responsibility of Korean multinational enterprises and greening export credit systems.