KOTRA Moving Backwards on Carbon Neutrality... Overseas Trade Centers Remain a 'No-Wind Zone' for Eco-Friendly Cars

Mandatory Purchase Rate of Eco-Friendly Vehicles at 100% This Year
KOTRA Overseas Trade Centers Achieved Only 7% Over the Past 5 Years... Half of 2008-2016 Level (15.3%)
Government Policies Strengthening Carbon Reduction Targets and 'Out of Sync'

[Sejong=Asia Economy Reporter Kwon Haeyoung] Although the government has been steadily expanding the mandatory purchase ratio of eco-friendly vehicles for public institutions, it has been revealed that KOTRA's overseas trade offices have maintained an eco-friendly vehicle purchase ratio of only around 7% over the past five years. While overseas trade offices are not obligated to purchase eco-friendly vehicles, concerns have been raised that this is out of sync with government policies that strengthen carbon reduction targets to achieve carbon neutrality.

According to data on the "Status of Vehicle Operation at KOTRA Overseas Trade Offices" submitted by KOTRA to Rep. Yang Geumhee of the People Power Party on the 14th, among the total 76 new vehicles purchased over the past five years (2017 to September 2021), only 6 (7.8%) were eco-friendly vehicles such as electric, hydrogen, or hybrid cars.

This is about half the eco-friendly vehicle purchase ratio of 15.3% (33 internal combustion engine vehicles, 6 eco-friendly vehicles) during 2008-2016, before and after the implementation of the mandatory eco-friendly vehicle purchase system for public institutions. Although the number of newly purchased vehicles from 2017 to 2021 nearly doubled compared to the previous approximately 10 years, the number of eco-friendly vehicles purchased remained the same. In particular, in 2017 and 2019, when more than 20 new vehicles were purchased each year, no eco-friendly vehicles were purchased or only one was purchased. Currently, among KOTRA overseas trade office official vehicles, there are 12 eco-friendly vehicles out of a total of 115, which is about one in ten.

This contradicts government policies that have been strengthening the mandatory purchase system for eco-friendly vehicles targeting public institutions. The government introduced this system in 2016 with the aim of having the public sector lead the creation of demand for eco-friendly vehicles and environmental improvement. The mandatory purchase ratio was raised from 50% in 2016 to 70% in 2018, and has increased to 100% starting this year.

KOTRA explained that because environmental regulations differ by country, overseas trade offices, even as public institutions, are not subject to related regulations. It also appears that the fact that many KOTRA overseas trade offices are located in remote areas without infrastructure for eco-friendly vehicles such as electric cars has some influence. However, considering that the eco-friendly vehicle purchase ratio over the past five years is half that of the previous approximately 10 years, and that even internal combustion engine vehicles can be equipped with emission reduction devices, there are criticisms that the response to government policies has been lukewarm.

Rep. Yang Geumhee said, "KOTRA should comprehensively re-examine the public service discipline of its overseas trade offices, and the government should also strengthen management to ensure that public institutions are making expenditures in accordance with regulations."

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