Press Release

Board View

The Ministry of Environment to extend its vehicle scrappage subsidy program to Grade 4 diesel vehicles from 2023

▷ The amended Enforcement Rules of the Clean Air Conservation Act were proclaimed on August 17, 2022, and executed on January 1, 2023 


Sejong, August 19 - The Ministry of Environment (Minister Han Wha-jin) announced that the revision of the Enforcement Rules of the Clean Air Conservation Act was proclaimed on August 17 and will be executed on January 1, 2023. According to the revision, the early scrappage subsidy program will be extended to grade 4 diesel vehicles. Grade 4 diesel vehicles are manufactured according to emissions allowance defined in Attachment 17, subparagraph 2(e) of the Enforcement Rules. Grade 4 diesel vehicles emit ultrafine particles at half the level of Grade 5 vehicles, directly emitting into the atmosphere or as secondary pollutants. Grade 4 vehicles emit greenhouse gas similarly to Grade 5 vehicles.


Of the 1.16 million grade 4 diesel vehicles registered as of July 31, 2022, the Ministry of Environment plans to support the early scrappage of the 840,000 vehicles without emission control devices installed and having relatively higher emission levels. If the early scrappage program goes according to the plan, the ministry estimates that annual emissions of ultrafine particles and GHGs will drop by 3,400 tons and 4.7 million tons, respectively. These figures make up about 8.4% and 4.8% of ultrafine particles and GHGs emitted from vehicles in 2018.


The Ministry of Environment also announced that the Grade 5 vehicles without emission control devices would not be subject to the early scrappage subsidy programs or programs to install emission control devices after 2023. As of 2018, 2.32 million registered Grade 5 vehicles were without an emission control device. However, thanks to the early scrappage subsidy programs and seasonal ultrafine particles management programs, the total number of registered Grade 5 vehicles dropped to 780,000 as of July 31, 2022, which decreased by 67%. The number of Grade 5 Vehicles currently insured decreased to 480,000. The Ministry of Environment will continuously subsidize 480,000 Grade 5 vehicles currently operating without reduction control devices for their scrappages by 2023. It will further decide whether it will continue the scrappage subsidy program for Grade 5 vehicles in 2024. 


Furthermore, the ministry intends to expand the areas subject to the restricted operation of Grade 5 diesel vehicles without emission control devices to include regions other than the metropolitan area. The limited operation of Grade 5 diesel vehicles has been implemented only within the metropolitan area since December 1, 2019. The initiative will now include Busan and Daegu from December 1, 2022. It will also extend to Daejeon, Ulsan, and Sejong starting December 1, 2023. As for Gwangju, the city will arrange a legal basis for implementing a limited operation of Grade 5 or below vehicles this year. Besides the metropolitan cities, the Ministry of Environment plans to deliberate restricted operations in Jeollanam-do, Gyeongsangbuk-do, Gyeongsangnam-do, and other provinces with relatively high numbers of Grade 5 diesel vehicles without emission control devices.


Park Yeon-jae, Director-General of Air Quality Policy Bureau, said, "We will allocate a sufficient budget for the early scrappage subsidy program for Grade 4 diesel vehicles." He added, "We expect the local governments to revise their regulations this year and promote the early scrappage subsidy program to their residents. As the early scrappage subsidy program for Grade 5 diesel vehicles will end soon, we urge those who subject to the program to apply by next year for the benefits."



Contact: Song Tae-gon, Senior Deputy Director

Transportation Environment Division / +82-(0)44-201-6929


Foreign Media Contact: Chun Minjo(Rachel)

+82-(0)44-201-6055 / rachelmchun@korea.kr