South Korea and China agreed Monday to expand their cooperation on emissions trading that includes joint efforts to link the countries' carbon trading markets, Seoul's carbon trading market operator said.

The Korea Exchange, also the country's bourse operator, said it signed a memorandum of understanding for cooperation with China Beijing Environment Exchange.

Under the agreement, the sides will exchange market information and share their experience.

"They will also work together toward market linkage and expansion of their clients," the KRX said in a press release.

The KRX launched the carbon trading system on Jan. 12 after the government distributed an initial emissions quota of 15.98 billion Korean allowance units to 525 local companies. One KAU is equivalent to one ton of carbon dioxide.

China currently has seven operators of regional carbon trading markets, including CBEEX, but is set to launch a nationwide trading scheme in 2017, the KRX said. (Yonhap)