SEOUL, Feb. 5 (Korea Bizwire) — Early scrapping of old diesel cars that cannot be fitted with low-emission devices will be subject to higher government compensation.
The Ministry of Environment and the Ministry of Economy and Finance introduced a new project for early scrapping of diesel cars with grade 5 emissions on Friday.
This year, the government will pay subsidies for 340,000 cars, up from 300,000 last year.
The Ministry of Environment will pay as much as 6 million won (US$5,300) for old vehicles that cannot be fitted with low-emission devices or those that would critically affect the driver’s livelihood if scrapped.
The value of individual subsidies will be 70 percent of the standard amount set by the Korea Insurance Development Institute.
The government will also subsidize the purchase of new or used cars with grade 1 or 2 emissions after the old vehicles are scrapped.
The government will pay 70 percent (4.2 million won) of the set maximum amount for early scrapping, and the remaining 30 percent (1.8 million won) for purchasing a new vehicle.
For other vehicles, the government will maintain last year’s policy of paying as much as 2.1 million won for early scrapping, and 900,000 won for purchasing a new car.
This new policy will cut down the rate of repurchasing diesel cars and help eradicate air pollution, the Ministry of Environment said.
Lina Jang (email@example.com)