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The amended Enforcement Order of the Energy Use Rationalization Act was promulgated by the South Korean Ministry of Trade, Industry, and Energy on August 30, 2024, with the announcement that it will go into effect on September 1st of the same year. In the event that an automobile manufacturer or importer does not meet its obligations to comply with the Average Energy Consumption Efficiency Standards, this updated version mainly changes the deadline for payment of the surcharge and extends the deadline for notification of the surcharge.
Motor vehicle importers and manufacturers are required by South Korea to select between adhering to the Average Energy Consumption Efficiency Standards or the Greenhouse Gas Emission Permissible Standards. The following is a summary of the surcharge system’s outline.
Summary of the surcharge system (through to August 31, 2024):
With effect from September 1, 2024, the following changes have been made to the Criteria for Imposition of Surcharges in this most recent version.
- Within two years after the day after the trading period for the average energy consumption efficiency requirement concludes, the Ministry of Environment must send written notice to the relevant company operators.
- Within 60 days of receiving the notification, business owners are required to pay the surcharges.
“This Enforcement Order was revised because the Enforcement Order of the Clean Air Conservation Act was revised on July 23, 2024 to modify the period for imposing and paying the surcharge in the case where a manufacturer or importer of motor vehicles fails to meet the Greenhouse Gas Emission Permissible Standards,” the Ministry of Trade, Industry, and Energy explained. In light of this, guidelines for situations in which the Average Energy Consumption Efficiency Standards are not met were also updated.