Korea Considers Tax Benefit for Additional Alternative Energy Equipment

South Korea, Asia’s fourth-biggest crude oil importer, is considering expanding the list of alternative-energy equipment eligible for a tax benefit to cut reliance on fossil fuels.

The government will prepare details by September to submit the plan to parliament, the finance ministry said in an e-mailed statement today.

South Korea said in November it will cut emissions by 30 percent by 2020 under a “business as usual” scenario. The target corresponds to a 4 percent reduction from 2005 levels, according to Green Korea United, a non-profit group. Asia’s fourth-largest economy will spend about 2 percent of its gross domestic product annually by 2013 to reduce carbon emissions and diversify its exports.

The government is also considering reducing import tax on raw materials used in rechargeable batteries and equipment to produce renewable energy, including solar and wind power, according to the statement.

To contact the reporter on this story: Shinhye Kang in Seoul at skang24@bloomberg.net.

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