The 2016 K League Challenge was the fourth season of the K League 2, the second-highest division in the South Korean football league system. Originally, K League Challenge champions could be promoted to the K League Classic, but Ansan Mugunghwa lost its qualification for the promotion after Ansan Government decided to break up with police football team from next year.[1] Runners-up Daegu FC directly qualified for the Classic instead of champions Ansan Mugunghwa, and third, fourth and fifth-placed team advanced to the promotion playoffs.
Restricting the number of foreign players strictly to four per team, including a slot for a player from AFC countries. A team could use four foreign players on the field each game.
The promotion-relegation playoffs were held between the winners of the 2016 K League Challenge playoffs and the 11th-placed club of the 2016 K League Classic. The winner on aggregate score after both matches earned entry into the 2017 K League Classic.