Phasing Out High-End Corporate Cars... Introducing Exclusive 'Light Green License Plates' for Corporate Business Passenger Vehicles

Administrative Notice on the Amendment of the Standards for Vehicle Registration Plates and Others

On the 2nd, the Ministry of Land, Infrastructure and Transport announced the administrative notice of the amendment to the "Standards for Vehicle Registration Plates, etc." to introduce new registration plates for business-use passenger cars used by public and private corporations. The Ministry plans to implement this from January 1, 2024, after the legislative notice period for the amendment.

The target vehicles are business-use passenger cars with a vehicle price of 80 million KRW or more. Considering high-priced electric vehicles, the price criterion was used instead of engine displacement. The 80 million KRW corresponds to the average price range of large vehicles (over 2000cc) under the Automobile Management Act and matches the surcharge criteria for high-priced vehicles in automobile insurance, which all vehicles subscribe to, ensuring universality and common applicability.

The applied color will be a light green registration plate with high visibility, excluding colors vulnerable to fading or discoloration and those currently in use. The application timing will be for passenger cars newly registered or with changed registration after the system is implemented.

The exclusive registration plate for corporate business-use passenger cars was promoted as a presidential pledge and national agenda due to ongoing issues of high-priced "supercars" being purchased under corporate names and used privately.

The exclusive plate was considered as a measure to attach registration plates with colors distinguishable from general plates on corporate vehicles, encouraging corporations to operate business-use passenger cars appropriately according to their purpose.

The Ministry of Land, Infrastructure and Transport has conducted research projects, public hearings, and collected opinions from experts and industries to introduce the exclusive registration plates.

During discussions, it was noted that private use and tax evasion issues arise not only with private corporation-owned and leased vehicles but also with long-term rentals (over one year) and official vehicles, so these were included. Among these, the application will be limited to high-priced vehicles to align with the presidential pledge to prevent private use of high-priced "supercars."

The full text of the amendment is available on the Ministry of Land, Infrastructure and Transport website, and opinions on the amendment can be submitted via mail, fax, or through the Ministry’s website.

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