"Yoon's Pledge, Before the Light Green License Plates Change"... Corporate Vehicle Registrations Over 300 Million Won Up 58.4% Year-on-Year

High-End Vehicles Registered Under Corporate Names... Over 3 Times More Than Personal Vehicles
"Private Use of Passenger Cars Must Be Closely Monitored and Improved"

Ahead of the implementation of the 'Light Green License Plate System' to prevent the private use of high-priced corporate vehicles, the number of newly registered ultra-luxury corporate passenger cars costing over 300 million KRW each increased by 60% compared to the previous year.

According to the passenger car registration status received on the 14th by Yang Kyung-sook, a member of the National Assembly's Planning and Finance Committee from the Democratic Party of Korea, from the Ministry of Land, Infrastructure and Transport, among the newly registered corporate passenger cars last year, 1,858 were ultra-luxury vehicles with an acquisition price exceeding 300 million KRW. Of these, 1,554 were passenger cars priced between 300 million and 500 million KRW, and 304 were passenger cars exceeding 500 million KRW.

This year, the number of corporate passenger cars registered at over 300 million won has increased by about 60% compared to last year.
[Photo by YTN]

Compared to the 1,173 corporate passenger cars priced over 300 million KRW registered in 2022, this represents a 58.4% increase in just one year.

The number of corporate passenger cars priced over 300 million KRW has steadily increased over the years, with 357 in 2018, 616 in 2019, 591 in 2020, and 820 in 2021, but last year saw the highest annual increase.

Some analysts suggest that the surge in purchases was driven by attempts to avoid the light green license plate system introduced this year to prevent private use of high-priced corporate vehicles. From this year, it has become mandatory to attach a 'light green license plate' to corporate passenger cars with a price of 80 million KRW or more when newly registered or changed.

As of the end of last year, the cumulative number of corporate passenger cars with an acquisition price exceeding 300 million KRW was 6,029, which is three times the number of passenger cars priced over 300 million KRW registered under individual names (1,945).

Concerns have been raised that some people exploit tax benefits such as fuel expenses by purchasing luxury imported cars under corporate names and then using them for private purposes. In response, President Yoon Suk-yeol pledged the 'light green license plate' policy during his candidacy, stating, "To distinguish corporate cars used for tax evasion purposes, license plates should be made conspicuous like those on taxis."

Accordingly, Representative Yang Kyung-sook urged, "Since the light green license plate system marks the beginning of preventing the private use of corporate passenger cars, the Ministry of Land, Infrastructure and Transport should closely monitor and improve the system during its initial phase to ensure it is well established."

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