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The increase in S. Korea's eco-friendly car sales volume and amount is attributed to the global carbon-neutral initiatives
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Upcoming S. Korean law to force firms to buy eco-friendly cars
The South Korean government confirmed a legislation draft that will oblige 2,616 private companies affiliated with local conglomerates with over 5 trillion won assets each to purchase environment-friendly car models.
The companies will be designated by the Korea Fair Trade Commission as subject to public disclosures.
The legislation takes effect from Jan. 28, 2022, after advance notice.
Under this legislation, when companies purchase new business-purpose cars, at least 22 percent must be eco-friendly, with 13 percent being electric vehicles and hydrogen fuel cell cars and the remaining nine percent being electric, hydrogen, and hybrid cars.
Taxi companies with over 200 vehicles will be required to have 7 percent of their new purchases with EVs or hydrogen fuel cell cars.
Truck companies should fill 20 percent of their 1-ton truck purchases with eco-friendly models.
Meanwhile, 26 bus companies with over 200 buses will be mandated to fill 6 percent of their new purchases with electric or hydrogen cars.