Tax benefits for biodiesel fuel extended to 2010

According to South Korea’s Ministry of Commerce, Industry and Energy (MOCIE), the government plans to call for an annual 0.5-percentage point increase in the mixture level of biological content used in diesel fuel, over the next five years. Deputy Prime Minister and Minister of Finance and Economy Kwon O-kyu convened a meeting of economy-related ministers and approved the Mid- to Long-Term Plans for the Spread of Biodiesel.” MOCIE officials said that the government would also extend tax benefits offered to biodiesel for three more years until 2010 since the actual product cost exceeds that of regular fuel. South Korea is the first country in Asia to mass produce biodiesel, although critics have said that bio material content levels are not high enough to have any significant positive effect, compared with countries in the European Union (EU), for example. (September 7, 2007)