South Korea to surpass Japan, U.S. on fuel efficiency

South Korea said it plans to spend 150 billion won (US$119 million) over the next five years to enhance the fuel efficiency of cars, amid rising global oil prices. The government explained that it aims to raise the fuel efficiency of locally made vehicles to surpass U.S. and Japanese standards. Automobiles made in South Korea are about 70% as fuel efficient as those made in Japan, media reports said. The government will levy fines on local car manufacturers who will not comply with government-set efficiency goals. According to the Ministry of Knowledge Economy, it will mandate a 16.5% fuel efficiency increase for cars until 2012 and will implement a further increase by 2015. Meanwhile, officials said they are pondering spending close to 1.6 trillion won (US$1.30 billion) to assist companies in developing technologies that will allow consumers and manufacturers to conserve energy. (June 4, 2009)