## 5 Conclusions  
This study underscores the pivotal influence of trade policy, energy efficiency, and various economic factors in determining South Korea's carbon emissions trajectory. In both the short and long term, improvements in energy efficiency and the adoption of environmentally sustainable trade practices emerge as essential strategies for reducing CO\({}_{2}\) emissions. The analysis demonstrates that, while economic growth, urbanization, and industrialization initially drive up emissions, the deployment of advanced technologies, foreign direct investment, and green innovations significantly offset these effects in the long run. South Korea's robust commitment to environmental sustainability, reinforced by its progressive policies and technological advancements, provides a solid framework for achieving its ambitious carbon reduction objectives. As the nation continues to balance the dual imperatives of economic growth and environmental stewardship, the findings offer compelling support for the adoption of long-term strategies that integrate sustainability into development. By advancing energy efficiency standards and accelerating the adoption of green technology, South Korea is well positioned to become a global leader in the transition toward a low-carbon economy, making a substantial contribution to international efforts to mitigate climate change. Drawing on the results of this study, several key policy implications and strategic solutions are proposed to advance environmental sustainability while maintaining economic growth. First, it is essential to align trade policies with stringent environmental regulations to reduce the carbon emissions associated with industrial exports. Incorporating energy efficiency standards into trade agreements can significantly lower the carbon intensity of South Korea's manufacturing exports. The Korean Emissions Trading System offers a foundational mechanism to support these efforts, incentivizing industries to adopt cleaner and more sustainable production practices. Second, the government should focus on increasing investments in energy efficiency, particularly within energy-intensive sectors \begin{table}
\begin{tabular}{c c c c} \hline \hline
**Variable** & **FMOLS** & **DOLS** & **CCR** \\ \hline \multirow{2}{*}{tp} & \(-0.126\)*** & \(-0.053\)*** & \(-0.077\)*** \\  & \((-7.233)\) & \((-7.199)\) & \((-6.887)\) \\ \multirow{2}{*}{ee} & \(-0.292\)*** & \(-0.109\)*** & \(-0.136\)*** \\  & \((-4.113)\) & \((-4.074)\) & \((-4.254)\) \\ \multirow{2}{*}{cv} & Yes & Yes & Yes \\ \hline \hline \end{tabular} Note: *** 1\(\%\) significance level. \(t\)-statistics in the parentheses. cv control variable.  
\end{table} 
Table 5: Results of robustness test analysis. such as petrochemicals, steel, and electronics. Implementing policies that encourage the adoption of state-of-the-art technologies to reduce energy consumption per unit of output is crucial. Offering subsidies or tax incentives to industries meeting enhanced energy efficiency benchmarks can further stimulate innovation and contribute to the overall reduction of CO2 emissions. Third, promoting innovation in green technologies, including renewable energy and carbon capture systems, should be a key priority. Government funding, research grants, and partnerships with private sector actors are essential for accelerating the development and widespread implementation of these technologies. Such efforts are critical to decoupling economic growth from environmental degradation and achieving substantial long-term reductions in CO2 emissions. Finally, South Korea should strategically target foreign direct investment that facilitates the transfer of cleaner and more energy-efficient technologies into the domestic market. FDI policies should prioritize partnerships with foreign firms that emphasize sustainability, ensuring that foreign capital not only enhances industrial capacity but also contributes to emissions reductions over time.