South Korea unveils package for auto industry
South Korean government has unveiled a program to help the auto industry. The package offers substantial tax exemptions to consumers who buy new cars after selling or scraping their old vehicles.
The package, also offers more liquidity to auto financing firms and help support research and development for more fuel efficient vehicles. The schemw will commence wef May 09 & is likely to be in force till Dec 09,It offers approx up to 70% cuts in taxes for the consumers who buy new cars after selling or scraping their cars registered before December 31st 1999.
According to a Govt Rep, "The decision has been made after a comprehensive review of market conditions and need to help stabilize the industry that provides direct and indirect work for 1.6 million people."
South Korea's auto industry reported an 18.7% YoY drop in production in March. Exports fell by 37.9% YoY in the first two months of this year as compared with the same period last year.
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