The automobile sector may be one of the most globally integrated manufacturing industries on the planet, but national governments (or continental bodies in Europe) still hold sway regarding regulation. As part of a management briefing exclusively available to just-auto’s members, we examine the environmental legislation impacting on the auto sectors in the US, the EU, Canada, Japan, South Korea, India and China. Extracted here is the section on South Korea.
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On 15 August 2008 – the 60th anniversary of the founding of the Republic of Korea (South Korea) – its President Lee Myung-bak addressed the nation from his notoriously smog-bound capital Seoul: “I want to put forward ‘Low Carbon, Green Growth’ as the core of the Republic’s new vision… Great emphasis will be placed on nurturing eco-friendly and highly efficient green cars as one of the new growth engines.” And so a process of change began.
A year or so later his green car programme is being firmly put into motion. Under new fuel economy and auto emissions rules, passenger cars and mini vans (with fewer than ten seats) sold in South Korea must have a fuel economy of at least 17km/l by 2015; carbon emissions must be reduced to 140g/km by that same year.
These rules will come into force for 2012 models and onwards. The legislation says 30% of cars manufactured and sold locally in 2012 need to meet the requirements; 60% for the following year; and 80% in 2014. Penalties for failing to meet one of the two requirements will be levied from 2012 or 2013 (the exact dates and penalties will be released later this year by relevant Government ministries).
According to the Korea Herald, South Korean vehicle makers have been under pressure from dealers in their major export destinations – Europe and America – to make green changes. The national newspaper cites the European Union’s plans to lower emission standards to 130g/km by 2012, and to 95g/km by 2015 as one driving force. But even with South Korea’s new laws there would still be a difference of 45g/km at the respective targets.
Manufacturers have been responding however. In July, Hyundai launched the Elantra LPI for domestic sale. With a fuel economy of 17.8km/l and carbon emissions of 99g/km the car comes well within the new standards. Buyers of the Elantra – and other hybrid vehicles manufactured in Korea or abroad – will receive up to KRW3.1m (US$2,500) in tax breaks under a Government scheme to boost sales of fuel-efficient vehicles. The tax breaks came into force from July this year.
Other measures to help boost the number of green cars on the road are also being discussed, including new auto tax rules based on fuel economy and carbon emissions, although nothing has yet been settled.
Meanwhile, on 18 June 2009, the Ministry of Land, Transport and Maritime Affairs revised the country’s technical vehicle safety standards. Under the new regulations, LED headlights and ‘idle stop and go’ devices can be installed in South Korean cars.
Meanwhile, a door lock and door safety standard has also been updated to meet global technical regulations mandated by the UN Economic Commission for Europe (UNECE). According to a South Korean government statement: “It is expected that the revision [to vehicle safety standards] will contribute to green growth and an increase in export competitiveness since it will enable new technologies, which are effective in improving fuel economy and reducing car emission, to be used widely.”
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