Gwangju City Selects and Supports 6,514 Aged Diesel Vehicles for Early Retirement

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 18th that it has selected 6,514 vehicles as targets for the ‘2021 Early Retirement Support Project for Old Diesel Vehicles’ to reduce automobile emissions, a major source of air pollution such as fine dust, and will provide support.

Earlier, Gwangju City received applications for the support project from February 18 to March 5, reviewed a total of 9,027 cases, and finally selected 6,514 vehicles, accounting for 72%, as the final targets.

The priority order for this selection was ▲vehicles currently under penalty suspension due to emergency reduction measures ▲LPG 1-ton cargo truck new purchase support recipients ▲vehicles with a gross weight of 3.5 tons or more, manufactured and released before 2002 ▲vehicles that cannot be equipped with emission reduction devices, commercial vehicles, small business owner vehicles, livelihood vehicles, etc.

Other vehicles were selected in order of oldest vehicle age (manufacture date).

The early retirement subsidy amount was determined by requesting calculation from the Automobile Environment Association throughout March, based on quarterly vehicle standard values from the Insurance Development Institute or the Ministry of the Interior and Safety’s standard market price, calculating scrapping prices according to vehicle type, age, and model.

The subsidy rate is based on a gross weight of 3.5 tons: for vehicles under 3.5 tons, 70% of the vehicle’s standard value is supported upon scrapping, and if an eco-friendly vehicle (including used ones) such as electric or hydrogen vehicles is purchased after scrapping the diesel vehicle, an additional 30% of the remaining amount is supported.

For diesel vehicles over 3.5 tons and road-use type 3 construction machinery (dump trucks, concrete mixer trucks, concrete pump trucks) manufactured under emission standards before 2005, up to 40 million KRW is supported, covering 100% of the vehicle’s standard value upon scrapping, with an additional 200% support upon new vehicle purchase.

Additionally, if a vehicle is confirmed by Gwangju City or the device manufacturer as one for which reduction devices are undeveloped or cannot be installed, an additional 600,000 KRW is supported within the upper limit of the basic early retirement subsidy rate.

Since the 16th, Gwangju City has been notifying early retirement support recipients via ▲individual text messages ▲announcements on the Gwangju City website ▲postal mail.

Selected vehicle owners must obtain a used car performance and condition inspection record, then after scrapping and deregistering the vehicle at a scrapyard, submit the early retirement subsidy claim form, a copy of the used car performance and condition inspection record, a copy of the deregistration certificate, and a copy of their bankbook by registered mail to Gwangju City within two months from the notification date of selection.

If purchasing a new vehicle (including used vehicles rated 1-2), the new vehicle purchase subsidy claim form, a copy of the vehicle registration certificate, deregistration certificate, and bankbook copy must be submitted by registered mail to the above address within four months from the notification date. Subsidies are also available if the vehicle was purchased and registered within two months prior to the notification date.

For vehicles over 3.5 tons, to receive the new vehicle subsidy, the purchaser must buy a new vehicle over 3.5 tons (not used). For large vehicles without gasoline or gas alternatives, support is only provided when registering a new Euro 6 or higher vehicle with the same or smaller engine displacement or maximum load capacity as the scrapped vehicle.

Recipients must fax the new vehicle purchase contract to the Gwangju City Air Quality Preservation Division within 14 days after notification.

Even if not selected this time, Gwangju City plans to select next-in-line candidates in order of oldest vehicle age among those who applied for early retirement twice consecutively in the second half of 2020 and this year but were not selected, as well as those who give up early retirement or new vehicle (including used vehicles rated 1-2) purchase.

Na Hae-cheon, head of the Air Quality Preservation Division, said, “Next year, we will secure a larger budget for early retirement so that no eligible early retirement candidates are excluded due to budget shortages,” and added, “We ask for active interest and participation in this project.”