Korea will change the color of the license plates of expensive corporate cars to light green next year to prevent personal use of the vehicles.
The tweak was one of President Yoon Suk-yeol's campaign pledges and is considered popular because corporate executives often take advantage of business tax cuts by buying a car for themselves in their company's name.
The Ministry of Land, Infrastructure and Transport on Thursday said it will issue the new plates from Jan. 1 next year to make company cars distinguishable from personal ones.
It applies to cars priced at over W80 million but will only cover those registered after Jan. 1 next year (US$1=W1,343).
The plan, though minor, proved unexpectedly complicated. In January this year, the ministry said the new license plates will be all corporate vehicles, whether bought or leased, but on Thursday a ministry official said, "There was concern that it might discourage business activities."
The ministry said cars worth under W80 million have been excluded because employees mostly use them for official business anyway, and they are less likely to be registered by executives to cheat the tax man.
It explained that it based the distinction on price rather than engine size to cover new electric cars or hybrids as well.
