Reduction of Environmental Improvement Charges for Grade 5 Vehicles during Fine Dust Seasonal Management and Emergency Measures

Emission Grade 5 Diesel Vehicles 3.96 Million Units Targeted
Up to 120,000 KRW Discount Expected by March Next Year

Asia Economy DB=Photo by Honam Moon munonam@

[Asia Economy Reporter Kim Bo-kyung] The government has decided to reduce the environmental improvement charges for Grade 5 diesel vehicles during the fine dust seasonal management period. The reduction amount ranges from approximately 60 to 2,000 KRW per day, depending on engine displacement, region, and vehicle age.

The Ministry of Environment announced on the 23rd that the environmental improvement charges will be reduced based on the vehicle registration location during the period when Grade 5 emission vehicles are not allowed to operate.

Currently, the fine dust seasonal management system (December to March of the following year), which restricts the operation of Grade 5 emission vehicles throughout the metropolitan area, is in effect. During high-concentration fine dust emergency reduction measures, operation of Grade 5 emission vehicles is restricted regardless of weekends or holidays according to city and provincial ordinances.

The environmental improvement charge is a system that makes diesel vehicle users pay the difference in social costs caused by environmental pollution between diesel vehicles and gasoline vehicles of the same emission grade. It is imposed differentially on Euro 4 or lower diesel vehicles based on engine displacement, region, and vehicle age, with 3.96 million vehicles subject to the charge as of the end of 2018.

Exemptions from the charge apply when the vehicle is proven to be unusable due to natural disasters, fire, traffic accidents, or damage. This reduction measure will be applied from January 1 of next year to owners of Grade 5 diesel vehicles to reduce fine dust.

According to the "Special Act on Fine Dust," vehicles restricted from operation will be considered as non-operating without separate proof, and the environmental improvement charge will be reduced accordingly.

The reduction amount ranges from about 60 KRW to 2,000 KRW per day depending on engine displacement, region, and vehicle age, with a maximum reduction of 120,000 KRW possible (from January 1 to March 31 next year).

When local governments enter the number of restricted operation days into the environmental administration system, which is the environmental improvement charge billing system, the charge will be automatically prorated and reduced.

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