Korean Green Mobility Exporter VERYWORDS Gains Official Approval from Cambodia for International GHG Reduction Project
A new type of international business model has emerged—one that simultaneously reduces carbon emissions, helps build industrial foundations in developing countries, and generates profits. This “triple-win” initiative centers on a project in Cambodia where Korea will acquire verified greenhouse gas (GHG) reduction credits through the deployment of electric motorcycles and charging infrastructure.
According to Korea’s Ministry of Trade, Industry and Energy (MOTIE) and industry sources on July 27, Korean eco-friendly mobility exporter VERYWORDS has officially received approval from the Cambodian government to pursue an Internationally Transferred Mitigation Outcome (ITMO) project through the sale of electric motorcycles. This marks Korea’s first official case of collaborating with a foreign government to share GHG reduction credits under the Paris Agreement.
Korea has previously declared a goal of reducing 37.5 million tons of emissions through international efforts by 2030 as part of its Nationally Determined Contributions (NDC).
Securing More Carbon Credits Is the Key to Success
The legal foundation for this initiative is Article 6.2 of the Paris Agreement. As developing countries are now also required to set NDCs, reductions achieved in those countries cannot be transferred to developed nations without the host government’s approval. This makes negotiation of credit allocation a critical step.
For Korean companies, the more credits they secure, the greater the volume they can sell to the Korean government—leading to higher profitability.
VERYWORDS aims to reduce a total of 680,000 tons of GHG emissions in Cambodia through electric motorcycle sales by 2035. Of this, 68,000 tons will remain with the Cambodian government, 400,000 tons will be transferred to the Korean government, and 212,000 tons will be retained by VERYWORDS.
The Ministry of Trade, Industry and Energy will purchase the 400,000 tons at 14,864 KRW per ton, investing a total of approximately 60 billion KRW (about 46 million USD). The credits held by VERYWORDS may later be sold on the carbon market or through additional government purchases.
Typically, emission credits are split 50-50 between the host and cooperating countries, but in this case, Cambodia agreed to allocate nearly 90 percent of credits to Korea and VERYWORDS.
According to Kim Sung-woo, CEO of VERYWORDS, “From Cambodia’s perspective, transferring early credits helps attract Korean capital, build manufacturing facilities, and promote EV adoption. Over the long term, as the number of electric vehicles increases, Cambodia stands to gain more carbon credits in future phases.”
With support from KOICA, VERYWORDS established Cambodia’s first electric motorcycle manufacturing plant in the Kien Svay Industrial Complex, approximately 20 km from Phnom Penh, two years ago.
Competitive Pricing with Subscription-Based Battery Services
VERYWORDS is selling its electric motorcycles for 1,600 USD per unit, which is significantly cheaper than the 2,600 USD price of conventional internal combustion engine (ICE) motorcycles. This pricing advantage was made possible by selling the vehicles without batteries, while offering subscription-based battery services.
Pricing plans range from a basic 2 USD per month plan for regular users to a 48.90 USD per month plan for delivery riders. The 60 billion KRW subsidy from the Korean government will be used to build charging and battery swapping infrastructure in Cambodia.
Kim added, “We aim to produce 12,000 units in 2025 and scale up to 70,000 units in 2026. By 2028, we project annual revenue to exceed 370 billion KRW (approximately 280 million USD).”
Korea’s First International Carbon Credit Project—Built from the Ground Up
Since the implementation of ITMO-based carbon reduction mechanisms in 2021, only 3 to 4 projects worldwide have successfully launched, including Switzerland’s electric bus initiative in Thailand. The VERYWORDS case is the first in the world to be approved in a country without any existing ITMO-related legal framework.
To make this possible, the Korean government mobilized a task force consisting of the Ministry of Trade, Industry and Energy, Korea Energy Agency, KOTRA, and the Global Green Growth Institute (GGGI), which worked jointly with Cambodia’s Ministry of Environment. Together, they developed methodologies, measurement protocols, and credit-sharing formulas.
From 2023 to 2025, the Korean government allocated 154.5 billion KRW (approximately 118 million USD) across various ministries for international carbon reduction projects. Korea is currently working on government-to-government agreements with 9 countries and has signed Memoranda of Understanding (MOUs) with nations including Cambodia, Bangladesh, and Indonesia.
Yoo Beom-min, Director of Investment Policy at the Ministry of Industry, stated, “This is Korea’s first officially approved international carbon credit project, and also the first structurally cooperative case. It showcases a win-win model built upon Korean technological expertise and Cambodia’s policy commitment.”
Source | The Hankyoreh, July 27, 2025
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