## 5 Conclusions and Policy Implications
For a transition to more granular pricing schemes, our research suggests an appropriate pathway that involves first moving from the current uniform pricing to SMP-based zonal pricing with two bidding zones, and then progressing to ELMP as the final stage. However, there is a critical need to analyze the potential market exit of non-capital region generators owing to revenue structure changes and its subsequent impact on any future capacity market and resource adequacy. To address these challenges, the implementation of a capacity market based on the net cost of new entry (Net CONE) [48], which considers revenue decline, could reduce the power producers' resistance to the transition to zonal and nodal pricing while improving overall market efficiency and enhancing system reliability. 2. Considering the loop network of Korea's power system, the maintenance of SMP mechanisms beyond SMP-based zonal pricing with two bidding zones will be limited in the future. Therefore, transitioning from a cost-based pool to a price-bidding system should be considered. Furthermore, in the transition to zonal or nodal pricing, it is imperative to initiate discussions on two critical aspects. The first is the mechanisms for settling the congestion surplus that is expected to arise, such as the implementation of financial transmission rights (FTRs) [5; 49]. The second is the implementation of more granular retail electricity prices to ensure accurate price signals [50]. 3. To mitigate potential conflicts of interest for a Transco in markets with a monopolistic structure in transmission and retail, it may be beneficial to explore the involvement of an independent entity in prioritizing and executing projects related to power system reliability. This could help ensure that investment decisions are made with impartiality, thereby focusing on overall system efficiency and social welfare. Additional measures such as functional unbundling, separate accounting systems, and enhanced transparency mechanisms could further ensure that a Transco's decisions align with both short-term efficiency and long-term system reliability. This study had several limitations that provide opportunities for future research. Our analysis focused on the wholesale electricity markets and excluded redispatch costs in the balancing market. Future research incorporating these costs could provide a more comprehensive analysis of pricing transitions. In addition, we defined zones based on administrative districts; however, research on optimal zone delineation is crucial for maximizing social welfare in zonal pricing. The effectiveness of specific pricing schemes can vary depending on factors such as generation mix, fuel costs, and demand profiles. While our analytical framework employs universally applicable methods, different market-specific conditions and regulatory frameworks require adjustments in implementation. Therefore, each power market should conduct rigorous simulations to determine the most suitable pricing scheme under their specific conditions. Nevertheless, our research offered valuable insights for electricity markets worldwide, considering zonal and nodal pricing transitions by providing a comprehensive sive analysis of various pricing schemes. This detailed examination provided important guidance for policymakers and stakeholders to navigate the complexities of electricity market reform. Conceptualization, K.K. ; methodology, K.K. ; software, K.K. ; validation, K.K., W.K. and H.S. ; formal analysis, H.O. ; investigation, K.K. ; resources, H.Y. ([PERSON]); data curation, H.Y. ([PERSON]); writing--original draft preparation, K.K. ; writing--review and editing, H.S. and W.K. ; visualization, K.K. ; supervision, W.K. ; project administration, W.K. ; funding acquisition, W.K. All authors have read and agreed to the published version of the manuscript.