The Korea Automobile Manufacturers Association announced changes to automotive regulations starting in 2023, including tax, environmental, safety, and tariff adjustments.
From 2023, the individual consumption tax and acquisition tax reductions for eco-friendly vehicles will be extended, and the 30% reduction in individual consumption tax will continue for an additional six months (from January 1 to June 30, 2023), implementing measures to ease the consumer burden.
Tax reductions for hybrid, electric, and hydrogen vehicles will be extended for two more years, lasting until the end of 2024, while new exemptions on individual consumption taxes for multi-child households will be introduced.
As the nominal interest rate for bond purchases when buying cars is adjusted (from 1.05% to 2.5%), consumer burdens will be reduced by about 40% when selling bonds at a discount. Furthermore, starting from March 2023, the obligation to purchase bonds for vehicles under 1,600cc will be waived, thereby expanding consumer benefits when purchasing vehicles.
In the automotive safety sector, the mandatory installation of emergency braking systems will be expanded to include passenger cars and cargo/special vehicles with a total weight of 3.5 tons or less. Additionally, starting in June next year, automobile repair businesses will be allowed to temporarily remove vehicle registration plates for maintenance purposes.
In terms of tariffs, the catalytic materials (platinum, palladium, rhodium) for internal combustion engines and hydrogen vehicle emission gas after-treatment systems, as well as permanent magnets for electric vehicles, have been designated as tariff-free items for one year (from January 1 to December 31, 2023).
By Lee Sang-jin daedusj@autodiary.kr