Incheon City Supports Early Retirement of Old Diesel Vehicles... Subsidy Cap Up to 6 Million Won

Additional Subsidies Provided for Purchasing Used Cars with Emission Grades 1-2

Old Diesel Vehicle Crackdown in the Seoul Metropolitan Area
[Photo by Asia Economy]

[Asia Economy Reporter Park Hyesook] The maximum subsidy amount for early scrapping of old diesel vehicles that cannot be equipped with particulate matter reduction devices will be increased from 3 million KRW to 6 million KRW per vehicle.

Incheon City announced on the 21st that it is implementing an early scrapping support project for old diesel vehicles registered in the region by investing 19.5 billion KRW.

The support targets approximately 12,200 vehicles, including Grade 5 emission diesel vehicles or road construction machinery manufactured before December 31, 2005, under the emission standards. The city plans to provide subsidies based on prices calculated by the Korea Insurance Development Institute considering vehicle type and age.

In particular, for Grade 5 emission old diesel vehicles with a gross weight under 3.5 tons that cannot be equipped with particulate matter reduction devices or are owned by livelihood-type, commercial, or small business owners, the subsidy cap has been expanded to 6 million KRW per vehicle starting this year.

The subsidy cap for vehicles not meeting these conditions remains at 3 million KRW. Upon scrapping, 70% of the vehicle's standard price is supported, and an additional 30% is provided when purchasing a new vehicle.

Those wishing to scrap their vehicles early can apply by visiting or mailing the Korea Automobile Environment Association or submitting through the vehicle emission grade system website (emissiongrade.mecar.or.kr).

The city also provides additional subsidies when purchasing not only new vehicles but also used vehicles with emission grades 1 to 2 (electric, hydrogen, hybrid, gasoline, LPG, etc.).

Within the subsidy cap, an additional 10% of the vehicle's standard price is supported for livelihood-type vehicles, and an additional 600,000 KRW is provided for vehicles without developed or installable reduction devices, as before.