The distinctive green plates, introduced early this year, are reportedly being avoided by those seeking to use high-priced corporate vehicles for personal use while maintaining tax benefits. (Image courtesy of Yonhap)
SEOUL, Nov. 11 (Korea Bizwire) – The Ministry of Land, Infrastructure and Transport has launched a comprehensive investigation into corporate vehicle registrations this year, following reports of companies attempting to circumvent new regulations requiring green license plates on corporate vehicles worth over 80 million won.
The distinctive green plates, introduced early this year, are reportedly being avoided by those seeking to use high-priced corporate vehicles for personal use while maintaining tax benefits, according to ministry officials on November 10.
The investigation focuses on comparing purchase prices with standard valuations for newly registered or transferred corporate vehicles. Officials have identified various evasion tactics, particularly among imported luxury car dealers, including “down contracts” where vehicles are officially documented below the 80 million won threshold, with remaining payments made in cash.
Other reported methods include falsifying vehicle identification numbers to alter manufacturing dates and reduce apparent value, or initially registering expensive vehicles under personal names before switching to corporate insurance.
The scope of the investigation is substantial, with 308,881 corporate passenger vehicles registered between January and September of this year, according to Carisyou Data Research Institute. Officials acknowledge challenges in establishing clear standard valuations for all cases.
“While the investigation presents numerous challenges, we are committed to swift completion and will respond firmly to suspected violations, including referrals to tax authorities or police,” a ministry official stated.
Since the green license plate system’s implementation about ten months ago, nearly 18,000 vehicles have been registered with these plates. According to data obtained by Democratic Party Representative Lee Yeon-hee from the Ministry of Land, Infrastructure and Transport, exactly 17,936 corporate vehicles valued over 80 million won received green plates through October 16.
Mercedes-Benz leads among brands with green plates, accounting for 5,327 vehicles (29.7%), including its sub-brands Mercedes-AMG (537 units) and Mercedes-Maybach (517 units).
Genesis, Hyundai’s luxury brand, follows closely with 5,276 vehicles (29.4%), with its G90 model, including long-wheelbase and limousine versions, being the most registered single model at 3,773 units.
BMW ranks third with 3,665 vehicles (20.4%), followed by Porsche with 1,208 units (6.7%).
M. H. Lee (mhlee@koreabizwire.com)
