Seoul City Expands Early Retirement Support for Grade 4 Diesel Vehicles and Non-Road Construction Machinery

Support of 13.95 Billion Won Invested

[Asia Economy Reporter Kiho Sung] On the 19th, Seoul City announced that it will expand the target of the early scrapping project, which is being promoted to reduce air pollutant emissions from automobiles and construction machinery, to 4th-grade diesel vehicles and non-road construction machinery, and will begin full-scale air quality improvement.

So far, early scrapping subsidies have only been provided for 5th-grade diesel vehicles and three types of road construction machinery (dump trucks, concrete mixer trucks, concrete pump trucks). Last September, the city announced a plan through the comprehensive plan 'Clearer Seoul 2030' to restrict the operation of 4th-grade vehicles within the Four Major Gates area from 2025 and expand it to the entire Seoul area by 2030. In line with this, support for early scrapping of 4th-grade diesel vehicles will begin from this time.

Seoul City will invest 13.95 billion KRW in the early scrapping project this year to support a total of 2,900 vehicles (▲ 2,000 4th-grade diesel vehicles, ▲ 700 5th-grade diesel vehicles, ▲ 200 road-use 3 types and non-road 2 types of construction machinery).

The application targets for the project are automobiles and construction machinery continuously registered for more than six months as of the application date in Seoul or the air management zone. However, among 4th-grade vehicles, those equipped with particulate matter reduction devices from the time of release, or those equipped with emission reduction devices through government support or converted to low-emission engines, are excluded from support.

If selected as a beneficiary of early scrapping support, you can receive scrapping subsidies and additional vehicle purchase subsidies within the upper limit. For 4th-grade vehicles, those under 3.5 tons can receive up to 8 million KRW, and those over 3.5 tons with more than 7,500cc can receive up to 78 million KRW.

Construction machinery also receives scrapping subsidies and additional vehicle purchase subsidies within the upper limit. Basically, 100% of the standard price is supported for early scrapping, and when purchasing a new vehicle, an additional 200% support is provided (100% for used vehicles only for the three types of road-use machinery). For the two types of non-road machinery, an additional 500,000 KRW is provided when purchasing zero-emission vehicles.

The city has also prepared additional measures to support vulnerable groups. For low-income groups (livelihood vehicles) and small business owners, an additional 1 million KRW is separately provided within the upper limit.

For more detailed information on how to apply and support requirements related to early scrapping subsidies, please refer to the '2023 Early Scrapping Subsidy Support Project for Operating Vehicles and Construction Machinery' posted on the Seoul City website. Vehicle owners who wish to receive early scrapping support can apply for low-emission measures through the vehicle emission grade system website.

Lee In-geun, head of Seoul City's Climate and Environment Headquarters, said, “Through improvements to the early scrapping project, we have expanded the subsidy support targets and made the amounts more realistic to strengthen support,” and added, “We ask for the active participation of citizens in the early scrapping project for old diesel vehicles and construction machinery.”