The South Korean Ministry of Land, Infrastructure and Transport declared on Thursday that, beginning January 1, 2024, vehicles bought by companies for official purposes with corporate tax cuts and valued at more than 80 million won (US$59,000) must display light green license plates. This new vehicle registration law will not be applicable to existing corporate cars.
In 2017, the government implemented a sky blue license plate system for all-electric and hydrogen fuel-cell electric vehicles purchased by customers, but this was also not retroactive.
Companies have been buying large-sized, gasoline-powered flagship vehicles, including super cars, for official purposes, and to take advantage of tax benefits, have been increasingly purchasing pure electric, hydrogen-powered, and other fuel-efficient hybrid vehicles. Many of these eco-friendly corporate cars are priced over 80 million won, while gasoline-powered corporate cars with engines over 2.0 liters usually cost more than 80 million won.
This photo taken on October 31, 2023, shows a light green license plate for corporate cars displayed during a public hearing held at the Korea Automobile Manufacturers Association in Seocho, southern Seoul. (Yonhap)
Starting in 2024, company-owned cars will be required to display light green license plates in order to prevent private use of them by company officials for tax benefits and cost reductions.
kyongae.choi@yna.co.kr
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