Government Struggles to Promote Eco-Friendly Cars... Public Institution Heads' Ownership Status Disclosed

Ministry of Industry and Ministry of Environment Announce '2019 Eco-friendly Vehicle Purchase Performance and Ownership Status' for 1,508 Institutions
Eco-friendly Vehicles Account for 12.7% of Total 118,000 Units... 27.6% of 15,000 New Purchases
"Mandatory Purchase Rate for Electric and Hydrogen Vehicles 100% from 2021, Eco-friendly Vehicle Ownership Rate 90% by 2030"
"Ownership Status of Heads of Institutions to be Disclosed from Next Year... Fines for Local Governments and Public Institutions Failing to Meet Mandatory Purchase Rates"

Photo by Yonhap News

[Asia Economy Reporter Moon Chaeseok] Starting next year, the status of eco-friendly vehicle ownership by heads of public institutions will be disclosed, and a fine of up to 3 million KRW will be imposed on local governments and public institutions nationwide that fail to meet the mandatory purchase rate. Last year, it was revealed that only about 1 in 10 vehicles owned by public institutions were eco-friendly cars.

The Ministry of Trade, Industry and Energy and the Ministry of Environment announced on the 26th the '2019 Public Sector Eco-Friendly Vehicle (Electric, Hydrogen, Hybrid) Purchase Performance and Ownership Status' of 1,508 public sector institutions.

Last year, the public sector purchased 15,463 vehicles. Only 4,270 vehicles, or 27.6% of the total, were eco-friendly vehicles. The ownership ratio is even smaller. As of the end of last year, only 14,981 vehicles, or 12.7% of the total 118,314 vehicles, were eco-friendly.

The government explained that the figures were somewhat low because they included data from before the mandatory purchase system was implemented in 2016. The survey also included cases where general vehicles such as vans, cargo vehicles, and off-road vehicles had to be purchased.

The government evaluated that "the mandatory purchase system in the public sector has been effective in creating proactive demand." It explained that the 12.7% eco-friendly vehicle ownership rate in the public sector is more than five times higher than the national average of 2.5%. The mandatory purchase system is based on the 'Act on the Development and Promotion of Environmentally Friendly Automobiles' and the 'Air Quality Preservation Act.'

Source=Ministry of Trade, Industry and Energy · Ministry of Environment

The government announced that it will raise the mandatory purchase rate of electric and hydrogen vehicles in the public sector to 80% starting next year. The rate will be gradually increased to 100% thereafter.

The scope of institutions subject to the mandatory purchase system will be expanded. In addition to institutions under the 'Public Institution Management Act' and the 'Local Public Enterprise Act,' institutions under the 'Government-Funded Research Institutes Act,' the 'Government-Funded Institutions in Science and Technology Act,' and the 'Local Government-Funded Institutions Act' will be added.

Through this, the eco-friendly vehicle ownership rate in the public sector will be raised from 12.7% last year to 35% by 2022 and 90% by 2030.

In the future, vans (light, small, medium), cargo vehicles (dump trucks, vans), and special vehicles will also be gradually included in the mandatory purchase categories as new models are released.

The photo shows President Moon Jae-in attaching a commemorative flag to the first eco-friendly car export of the year, the 'Niro,' at Pyeongtaek Port on January 3rd. (Photo by Yonhap News)

Vehicle purchase performance and ownership status in the public sector will be disclosed annually to enhance compliance.

Starting next year, the vehicle status of institution heads will also be disclosed.

Additionally, from next year, local governments and public institutions nationwide that fail to meet the mandatory purchase rate will be fined up to 3 million KRW.

Choi Nam-ho, Director of Manufacturing Industry Policy at the Ministry of Trade, Industry and Energy, emphasized, "We will actively promote research and development and diversification of vehicle types, including electric and hydrogen commercial vehicles, so that a variety of high-performance eco-friendly vehicles can be chosen in the market, including the public sector."

Geum Han-seung, Director of Air Quality Policy at the Ministry of Environment, stated, "The public sector will take the lead in creating demand for electric and hydrogen vehicles and strengthen the mandatory purchase system to drive the era of future vehicles."

This content was produced with the assistance of AI translation services.