Seoul City Invests 12 Billion Won... Applications Open from the 23rd
Driving Restrictions Expanded to Grade 4 from Next Year
Additional 1 Million Won Within Cap for Low-Income Groups
The Seoul Metropolitan Government is conducting an early retirement program for old diesel vehicles rated 4 and 5. Starting in 2025, the restriction on vehicles operating within the city will be expanded to include grade 4 vehicles. Since March, Seoul has been supporting the early retirement of grade 4 vehicles equipped with emission reduction devices.
On the 22nd, Seoul announced that it will invest an additional 12 billion KRW to carry out the 2nd phase of the early retirement support project for old diesel vehicles and construction machinery from the 23rd of this month until July 12th.
This 2nd announcement will proceed without early budget exhaustion or suspension as long as applications are submitted within the reception period. This improvement addresses the previous issue where some early applicants received subsidies for a large number of early retirements, causing the budget to be depleted early under the first-come, first-served system. The initial goal of the 1st early retirement support was about 2,000 vehicles with 6 billion KRW, but due to high demand, support exceeded the original target by 125%, reaching 2,500 vehicles and 9.2 billion KRW.
The selection method for support recipients has also been improved. Among all applications received during the application period, priority support criteria such as vulnerable groups are applied to select one vehicle per person first. This allows citizens directly affected by the internal combustion engine vehicle operation restrictions to be supported first.
The eligible applicants are diesel vehicles and construction machinery rated 4 or 5 that have been continuously registered for more than six months as of the application date in Seoul or the air quality management zone. Within the upper limit, in addition to the early retirement subsidy, an additional subsidy is provided when purchasing a new vehicle after scrapping. For grade 4 vehicles under 3.5 tons, up to 8 million KRW is provided, and for those over 3.5 tons with engine displacement exceeding 7,500cc, up to 78 million KRW is provided. Subsidies are also provided within the upper limit for grade 5 vehicles and construction machinery, and an additional 1 million KRW is given within the upper limit to low-income groups (livelihood vehicles) and small business owners. Seoul plans to announce the 3rd early retirement support project in August.
Yeo Jang-kwon, head of Seoul’s Climate and Environment Headquarters, said, "As citizen interest in early retirement increases, we have improved the process to support subsidies to a wider range of citizens evenly," adding, "Citizens who were unable to apply due to the early closure of the 1st early retirement support project in March are encouraged to actively participate."
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