G/SCM/N/401/KOR  
 
1 September  2023 
(23-5867) Page: 1/23 
Committee on Subsidies and  
Countervailing Measures  Original:  English  
 
  
SUBSIDIES  
NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI:1  
OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT  
ON SUBSIDIES AND COUNTERVAILING MEASURES  
REPUBLIC OF KOREA 
The following communication, dated 4 August and received on 16 August  2023, is being circulated 
at the request of the delegation of the Republic of Korea . 
 
_______________  
 
 
The following notification is submitted for the purposes of transparency and witho ut prejudice to the 
legal status and nature , including specificity, or effects of the notified programmes or measures 
under the ASCM and G ATT 1994 . 
  G/SCM/N/401/KOR  
 
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  Table of Contents  
1  AGRICULTURE, FORESTRY  ................................ ................................ ............................  3 
1.1  Foodgrain Management Programme  ................................ ................................ ..............  3 
1.2  Support for Marketing an d Promotion of Agricultural and Livestock Products  .......................  5 
1.3  Support For Livestock  Products  ................................ ................................ .....................  6 
1.4  Wood Utilization Assistance Programme  ................................ ................................ .........  7 
2  FISHERIES  ................................ ................................ ................................ ...................  8 
2.1  Support for Management of Fisheries  ................................ ................................ ............  8 
2.2  Support for Management  of Overseas Fisheries  ................................ ...............................  9 
2.3  Support  for Fisheries  Resources Management  ................................ ................................  10 
2.4  Support  for Aquaculture  Fishery  Development  ................................ ...............................  11 
2.5  Support for Vessel Decommissioning  ................................ ................................ ............  12 
3  INDUSTRY  ................................ ................................ ................................ ..................  13 
3.1  Coal Industry  Support in the Special Accounting for Energy and Resource  ..........................  13 
3.2  Support for The Construction of City Gas Service Pipelines  ................................ ..............  14 
3.3  Support for Free Trade Zones  ................................ ................................ ......................  15 
3.4  Tariff Reduction  on Aircraft Parts  ................................ ................................ .................  16 
3.5  Support for Farm Machinery Manufacturing  ................................ ................................ ... 17 
3.6  Loan Programme for R&D of Information and Communication Technology  ..........................  18 
4  ENVIRONMENT, RESEARCH AND DEVELOPMENT  ................................ ........................  19 
4.1  Loan Programme  for Environmental Industry Promotion  ................................ ..................  19 
4.2  Support for R&D of Environmental  Technology Development Projects  ................................  20 
4.3  Emission Reduction Project for In-use Diesel Vehicles  ................................ .....................  21 
4.4  Project for the Support for Low NOX Burner Installation  ................................ ..................  22 
4.5  Subsidy for the Costs of Installation and Management of Telemetering Systems  .................  23 
  G/SCM/N/401/KOR  
 
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  1  AGRICULTURE, FORESTRY  
1.1  Foodgrain Management Programme  
1. Title of the subsidy programme  
Foodgrain Management Programme.  
2. Period covered by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
To maintain  and manage adequate food stock s of basic agro -products for food security.  
4. Background and authority  for the subsidy  
Law 
− Foodgrain Management Act  (Article 4).  
− Agro-Fisheries Marketing and Price Stabilization  Act (Article 1 3). 
Authority : Ministry of Agriculture , Food and Rural Affairs . 
5. Form of the subsidy  
Grant s and loan s. 
6. To whom and how the subsidy is provided  
Grants  
− Recipients : Farms that produce soybeans . 
− Content of subsidy : The government purchases a certain volume from the producing farms.  
Loans 
− Recipients : The enterprises that purchase grains (with the exception of rice) . 
− Content of subsidy : The government provides the enterprises with loans so that they can 
purchase  grains ( except for  rice) from grain farms.  
− Loan interest and durati on: fixed rate  (2.5~3.0 %) or variable rate, 12 months . 
7. Amount of the subsidy  
(Unit: million  KRW) 
Item  Type  2019 2020 
Grains  
(except for  rice) Direct subsidy  (a)  - - 
Loan 9,349  8,930  
Benefit of loan* (b)  - - 
Total (a+b)  - - 
Soybeans  Direct subsidy ( a) 11,722  85,634  
Loan - - 
Benefit of loan * (b) - - 
Total ( a+b) 11,722  85,634  
* There has been no difference between the loan rate and the market rate since 2016. which makes 
the benefit of loan for grains zero in 201 9 and 20 20. G/SCM/N/401/KOR  
 
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  8. Duration of the subsidy  
No fixed duration.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
It is estimated that the support of foodgrain purchase has a minimal effect on trade because of 
Korea's low self -sufficiency  rate. 
  G/SCM/N/401/KOR  
 
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  1.2  Support for Marketing and Promotion of Agricultural and Livestock Products  
1. Title of the subsidy prog ramme  
Support  for Marketing and Promotion of Agricultural and Livestock Products.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective  and/or purpose of the subsidy  
To improve the quality and reduce the logistical costs of agro -livestock products (fruits, flowering  
plants, Kimchi, vegetables, ginseng and livestock products).  
4. Background and authority for the subsidy  
Law: Framework  Act on Agriculture and Fisheries, Rural Community and Food Industry (Article 59).  
Authority : Ministry of Agriculture, F ood and Rural Affairs . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
Recipients : Exporters of fruits, flowering plants, Kimchi, vegetables, ginseng, and livestock products.  
Content  of the subsidy:   Partial support for co sts in sorting, packaging, and transporting . 
7. Amount of the subsidy  
(Unit: million  KRW)  
Type  2021 2022 
Lump sum transfer   35,316  28,606 - 
* Please note that the data for 2022 are provisional and subject to change  
8. Duration of the subsidy  
No fixed period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
This program supports the partial cost in compliance with the Article 9.4 of the Agreement on 
Agriculture and Nairobi Ministerial Decision . The impact of the program on t rade is expected to be 
minimal.  
  G/SCM/N/401/KOR  
 
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  1.3  Support For Livestock  Products  
1. Title of the subsidy programme  
Calf Breeding Sta bilization Schedule . 
2. Period covered by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
To improve the competitiveness and  the income of Hanwoo farmhouses  through cutting down 
production  costs.  
4. Background and authority for the subsidy  
Law: Livestock Act  (Article 3 and Article 32). 
Authority : Ministry of Agriculture, Fo od and Rural Affairs . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
Recipients : Cow raising farmers who joined the Calf Breeding Stabilization Schedule . 
Contents of the subsidy : Support is provided to compensate for the loss in case the average market 
price of calf is  lower than the standard price of the schedule . 
7. Amount of the subsidy  
(Unit: million  KRW)  
Type  2021 2022 
Lump sum transfer  2016 172 
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
The impact of the program on trade is expected to be minimal because the purpose of the program 
is to stabilize the income of cow raising farmers .  G/SCM/N/401/KOR  
 
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  1.4  Wood Utilization Assistance Programme  
1. Title of the subsidy programme  
Wood  Utilization Assistance Programme . 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or purpose of the subsidy  
− To develop the timber industry related to wood use and processing . 
− To improve productivity by replacing aging facilities . 
4. Background and authority for the subsidy  
Law: Act on the Promotion of  Forestry and Mountain  Villages (Article  10). 
Authority : Korea Forest Service . 
5. Form of the subsidy  
Loans. 
− Source of funding : Special Account for  the Structural Improvement of Rural Areas . 
6. To whom and how the subsidy is provided  
Recipient s: Wood manufacturers . 
Conditions : Interest rate of 3.0 % or variable Interest  rate. 
Terms of the loan: 10 years (7 -year repayment period with a 3 -year grace period) . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)  - - 
Loan 4,860  1,390  
Benefit of loan*  (b) 44.2 30.2 
Total (a+b)  44.2 30.2 
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period . 
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
Most of the se products are  used to meet domestic demand . Therefore, t he effect on trade is 
presumed to be insignifican t.  G/SCM/N/401/KOR  
 
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  2  FISHERIES  
2.1  Support for Management of Fisheries  
1. Title of the subsidy programme  
Support for Management of Fisheries . 
2. Period covered by the notification  
2021-2022. 
3. Policy objec tives and/or purpose  of the subsidy  
This programme  is designed to support fishers facing difficulties in business conditions such as high 
management costs ; and to relieve the financial burden of fishers and stabilize fisheries management.  
4. Background and authority for the subsidy  
Law: Fisheries Act  (Article 93). 
Authority : Ministry of Oceans and Fisheries.  
5. Form of the subsidy  
Interest subsidy on loans (subsidizing the gap between the loan interest rate and the market rate) . 
6. To whom and how the subsidy is provided  
Recipient s: Fishermen duly holding a license , permit , or submitted a report under the relevant 
fisheries legislation . 
Terms : Priority given to  fishermen and artisanal fishers participating in self -managed fisheries 
project . Restrictions for eligibility in case of  violat ions of  relevant laws.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) - - 
Loan 2,396,639  2,473,012  
Benefit of loan* ( b) 59,277  67,792  
Total ( a+b) 59,277  67,792  
* The benefit of loan is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period . 
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
N/A (the programme is not trade -conditioned) . 
  G/SCM/N/401/KOR  
 
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  2.2  Support for Management  of Overseas Fisheries  
1. Title of the subsidy programme  
Support for Management of Overseas  Fisheries. 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or purpose of the subsidy  
This programme  is designed to support the overall process of busin ess management which includes 
facilities maintenance, insurance costs etc ; and is expected to enhance business stability . 
4. Background and authority for the subsidy  
Law: Distant  Water Fisheries Development Act (Article 26 ). 
Authority : Ministry of Oceans and Fisheries.  
5. Form of the subsidy  
Interest  subsidy on loans (subsidizing the gap between the loan interest rate and the market rate) . 
6. To whom and how the subsidy is provided  
Recipient s: Eligible distant water fishermen under the Di stant water Fisheries Development Act.  
Terms : In cases of violating the conservation and management measures established by coastal 
states and Regional Fisheries Management Organizations (RFMOs), the operator subject to a 
disposition for suspension shall not be eligibl e to apply.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021  2022  
Lump sum transfer ( a) - - 
Loan 64,325  169,244  
Benefit of loan ( b) 876 2,055  
Total ( a+b) 876 2,055  
* The benefit of loan is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
N/A (the programme is not trade -conditioned) . 
  G/SCM/N/401/KOR  
 
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  2.3  Support  for Fisheries  Resources Management  
1. Title of the subsidy programme  
Support for Fisheries R esources Management . 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or purpose of the subsidy  
This programme is designed to promote sustainable use and conservation of fisheries resources and 
further foster scientific /technical knowledge in resource management including self -regulatory 
fisheries management . It includes managing fisheries resources, restoring resources, improving 
fishing ground environment, and promoting self -imposed control fishe ries. 
4. Background and authority for the subsidy  
Law: Fishery Resources  Management Act  (Article 36, 41 etc), Fisheries Act  (Article 93) . 
Authority : Ministry  of Oceans and Fisheries.  
5. Form of the subsidy  
Grants and Loans. 
6. To whom and how the subsidy is provided  
Recipient s: National and private institutes including the National Institute of Fisheries Science (NIFS), 
fishers and fishing communities engaged in fisheries management (TAC, self -regulatory fisheries 
management etc.) . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 107,438  116,075  
Loan 9,045  10,500  
Benefit of loan * ( b) - - 
Total ( a+b)* 107,438  116,075  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
N/A (the programme is not trade -conditioned) . 
  G/SCM/N/401/KOR  
 
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  2.4  Support  for Aquaculture  Fishery  Development  
1. Title of the subsidy programme  
Support for Aquaculture Fishery Development.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
This programme is designed to ensure, in line with changes in the production environment, the 
stable supply of aquaculture products through the development of aquaculture farms.  
4. Background and authority for t he subsidy  
Law: Aquaculture  Industry Development Act (Article 66) . 
Authority : Ministry  of Oceans and Fisheries.  
5. Form of the subsidy  
Grant s and loans. 
6. To whom and how the subsidy is provided  
Recipient s: Aquaculture  fishers . 
Terms of the grant : 20 to 30 % of business expenses . 
Terms of the loan: 2 years loan at an annual interest rate of 3%. 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 20,979  18,718  
Loan 2,240  2,240  
Benefit of loan* ( b) 18 17 
Total ( a+b) 20,997  18,735  
* The benefit of loan is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period . 
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
N/A (the programme  is not trade -conditioned) . 
  G/SCM/N/401/KOR  
 
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  2.5  Support for Vessel Decommissioning  
1. Title of the subsidy programme  
Support for Vessel Decommissioning.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
This programme  is designed to support conservation and management of fisheries resources by 
reducing the number of offshore and coastal fishing vessel . The objective of this programme is to 
protect fisheries resource and achieve sustainable fisheries.  
4. Background and aut hority for the subsidy  
Law: Act on The Special Accounts for Energy and Resources -related Projects (Article 6.2). 
Authority : Ministry of Oceans and Fisheries . 
5. Form of the subsidy  
Grant s. 
6. To whom and how the subsidy is provided  
Recipient s: Coastal and offshore fish er. 
Terms of the grant : offshore fishing vessel decommissioning (government support 100 %), coastal 
fishing vessel decommissioning (government support 80 % and provincial support 20 %). 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 125,413  120,446  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  125,413  120,446  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  G/SCM/N/401/KOR  
 
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  3  INDUSTRY  
3.1  Coal Industry  Support in the Special Accounting for Energy and Resource  
1. Title of the subsidy programme  
Coal Industry Support in the Special Accounting  for Energy and Resource.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the  subsidy  
− Stabilizing  Supply and Demand of anthracite and briquettes . 
− Support for inefficient restructuring of the coal industry and support for retired workers.  
4. Background and authority for the subsidy  
Law: Article 27 and Enforcement Ordinance NO.22 of the Coal industry Act . 
Authority : Ministry of Trade, Industry & Energy.  
5. Form of the subsidy  
Grants.  
6. To whom and how the subsidy is provided  
The subsidy is provided to coal mine operator, briquette manufacturer, and collier in the form of 
production stabili zation support fund, occupational health and safety insurance premiu m, briquette 
manufacturing cost, and school expenses . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)  120,920  106,137  
Loan - - 
Benefit of loan * (b) - - 
Total (a+b)  120,920  106,137  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  
  G/SCM/N/401/KOR  
 
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  3.2  Support for The Construction of City Gas Service Pipelines  
1. Title of the subsidy programme  
Support for the construction of city gas service pipelines.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
Providing financing for the construction of supply pipelines in underserved and marginalized  areas  
through financing support . 
4. Background and authority for the subsidy  
Law: Article 27 and Enforcement Ordinance NO.22 of the Coal industry Act . 
Authority : Ministry of Trade, Industry & Energy.  
5. Form of the subsidy  
Loans. 
6. To whom and how the subsidy is provided  
The subsidy is provided to city gas operators , constructing of supply pipelines in rural areas  
(80~100 %). 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)  - - 
Loan 30,000  27,000  
Benefit of loan * (b) - - 
Total (a+b)  30,000  27,000  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  
  G/SCM/N/401/KOR  
 
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  3.3  Support for Free Trade Zones  
1. Title of the subsidy programme  
Support for Free Trade Zones.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
− Improve the business  climate and create free trade zones . 
− Promote corporate  investment in local areas and create growth centers for regional 
innovation . 
4. Background and authority for the subsidy  
Law: Act on Designation and Management of Free Trade Zones (Article 49) . 
Authority : Ministry of Trade, Industry & Energy.  
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
The subsidy is provided for the construction  of standard factories for use by companies in Free Trade 
Zones.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)  5,150  9,228  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  5,150  9,228  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  
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  3.4  Tariff Reduction  on Aircraft Parts  
1. Title of the subsidy programme  
Tariff Reduction  on Aircraft Parts . 
2. Period covered by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
Due to deficient domestic supply, tariff reduction is needed to meet demand by encouraging the 
importation of aircraft parts . 
4. Background and authority for the subsidy  
Laws: Customs Act (Article 89 ). 
Authority : Ministry of Strategy  and Finance . 
5. Form of the subsidy  
Tariff reduction . 
6. To whom and how the subsidy is provided  
Those designated as aircraft manufacturers or repairer s in accordance with the Promotion Act for 
the Development of Aircrafts and Spa ce Industries.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)  50,532  66,850  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  50,532  66,850  
8. Duration of the subsidy  
A. For businesses  (excl. SMEs) 
i. Some Products of the description listed in the Annex to the Agreement on Trade in 
Civil Aircraft  (reduction rate applied) : 100% (2021 -2024) → 80% (2025) → 
60% (2026)→ 40% (2027) → 20% (2028) → abolition  (after 2029).  
ii. Other aircraft parts  (reduction rate applied) : 70% (2021)→ 60% (2022) → 50% (2023) 
→ 40% (2024) → 20% (2025) → abolition  (after 2026).  
B. For SMEs : 100% 
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
As the tariff reduction  is aimed at promoting importation of aircraft parts there  is no effect on trade .  G/SCM/N/401/KOR  
 
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  3.5  Support for Farm Machinery Manufacturing  
1. Title of the subsidy programme  
Support for Farm Machinery Manufacturing.  
2. Period covered  by the notification  
2021-2022. 
3. Policy objective and/or purpose of the subsidy  
− To assist off -season manufacturing of farm machinery and to help machinery manufactures 
meet the high demand for farm machinery in the farming seasons.  
− To promote manufacturing and supply of high -quality agric ultural machinery made in 
Korea, by providing financial resources for establishing production facilities of machinery 
required for automatization and modernization of agricultural facilities and machinery.  
4. Background and authority for the subsidy  
Law: Farm Mechanization  Promotion Law  (Article 4).  
Authority : Ministry of Agriculture, Food and Rural Affairs.  
5. Form of the subsidy  
Loans. 
6. To whom and how the subsidy is provided  
Recipients : Farm machinery manufacturers and developers of new -tech machinery.  
Content of the Subsidy : To provide financial assistance for producing agricultural machinery and for 
establishing  and constructing agricultural machinery production facilities . 
7. Amount of the subsidy  
(Unit: million  KRW) 
Type  2021 2022 
Direct subsidy (a)  - - 
Loan 192,042  196,745  
Benefit of loan* (b)  - 984 
Total (a+b)  - 984 
8. Duration  of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects  of the subsidy  
Its effect on trade is expected to be almost non -existent since the amount of the subsidy accounts 
only for 0.1 % of the total value of farm machinery production .  G/SCM/N/401/KOR  
 
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  3.6  Loan Programme for R&D of Information and  Communication  Technology  
1. Title of the subsidy programme  
Loan Programme for R&D of Informa tion and Communication  Technology.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
To alleviate  excessive risk s and burden s that companies face when developing technologies by 
providing loan s for large -scale R&D projects in the field of information and communications.  
4. Background and authority for the subsidy  
Law: Information and Communications Technology Industry Promotion Act.  
Authority : Ministry of Science  and ICT. 
5. Form of the subsidy  
Financing  (Loans). 
6. To whom and how the subsidy is provided  
Recipients : Small and medium sized companies  (private) . 
Terms : Interest rate  to be adjusted  according to market interest rate . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer (a)    
Loan 25,589  16,388  
Benefit of loan*  (b)   
Total (a+b)  25,589  16,388  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period . 
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None. 
  G/SCM/N/401/KOR  
 
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  4  ENVIRONMENT, RESEARCH AND DEVELOPMENT  
4.1  Loan Programme  for Environmental Industry P romotion  
1. Title of the subsidy programme  
Loan Programme for Environmental Industry Promotion . 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
To provide long -term and low interest rate loans to promote the development of environmental 
industry . 
4. Background and authority for the subsidy  
Laws: Environmental Technology and Industry Support Act  (Article 13 -4), Act on the Promotion of 
Saving and Recycling of Resources  (Article 31) . 
Authority : Ministry of Environme nt. 
5. Form of the subsidy  
Loans. 
6. To whom and how the subsidy is provided  
Recipient s: Small and medium -sized environmental enterprises . 
Terms  of the loan: 
− Facility/ Equipment : 7-year equal repayment period with a 3 -year grace period . 
− Operation : 3-year equal repayment period with a 2 -year grace period . 
7. Amount of the subsidy  
(Unit: million KRW)  
 2021 2022 
Lump sum transfer ( a) - - 
Loan 300,000  200,000  
Benefit of loan * (b) 3,000  2,000  
Total ( a+b) 3,000  2,000  
* The benefit of loan is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  G/SCM/N/401/KOR  
 
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  4.2  Support for R&D of Environmental Techno logy Development Projects  
1. Title of the subsidy programme  
Support for R&D of Environmental Technology Development Projects.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
For sustainable development of environm ental conservation and the national economy.  
4. Background and authority for the subsidy  
Laws: Environmental Technology and Industry Support Act (Article 5).  
Authority : Ministry of Environment.  
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
Recipient s: Government -invested research institutions, universities, and private enterprises . 
Conditions of application : 100% support to Non -profit organization, 50~75 % support to participation 
business.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer  (a) 363,630  385,259  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  363,630  385,259  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
The effect on trade is minimal  because the programme is focused on support for R&D of fundamental 
technology  in order to improve the environment.  
  G/SCM/N/401/KOR  
 
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  4.3  Emission Reduction Project for In-use Diesel Vehicles  
1. Title of the subsidy programme  
Emission Reduction Project for In -use Diesel Vehicles.  
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
To improve air quality  across the nation . 
4. Background and authority for the subsidy  
Laws: Special Act on the Improvement clean Air in the Management Area  (Paragraph 5 of Article  26), 
Clean Air Conservation Act (Paragraph 3 of Article 58)  Authority : Ministry of Environment.  
Autho rity: Ministry of Environment . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
Recipient s: Government -invested research institutions, universities, and private enterprises . 
Conditions  of application : 50~60 % support to local government.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 434,599  279,931  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  434,599  279,931  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
This subsidy provides the total cost for a diesel vehicle owner who installs emission reduction devices, 
retrofits  with "cleaner" engines or early scrapping . Therefore, it does not differentiate between a 
domestic and an imported device, which means that it does not result in a discriminatory trade 
barrier . 
  G/SCM/N/401/KOR  
 
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  4.4  Project for the Support for Low NOX Burner Installation  
1. Title of the subsidy programme  
Project for the Support for Low NOX Burner Installation . 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
To support the installation of low NOX burners at small and medium business s ites with an aim to 
improve air quality in areas of high concern in metropolitan and rural areas.  
4. Background and authority for the subsidy  
Laws: Clean Air Conservation Act (Paragraph 3 of Article 26) , Act on the Budgeting and Management 
of Subsidies , Notifications No. 2009-13 (Subsidy project to support low NOX burner installation, 
delegated affairs) and No. 2023-49 (Subsidy project under the Ministry of Environment, delegated 
affairs) of the Ministry of Environment . 
Authority : Ministry of Environment . 
5. Form of the subsidy  
Grants . 
− Source of funding : Special Account for Environmental Improvement . 
6. To whom and how the subsidy is provided  
Recipients : SMEs under Article 3 of the Enforcement Decree of the Framework Act on Small and 
Medium  Enterprises . 
Terms : non-profit corporations, commercial buildings and apartment houses (with the exception of 
public facilities ) replacing regular burners with low NOX burners on regular boilers, water 
chillers/heaters and drying facilities (limited to indirect heating faciliti es). 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 2,183  2,593  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  2,183  2,593  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate. 
8. Duration of the subsidy  
No fixed time period.  
9. Statistical data permitting an assessment of the t rade effects of the subsidy  
None.  G/SCM/N/401/KOR  
 
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  4.5  Subsidy for the Costs of Installation and Management of Telemetering Systems  
1. Title of the subsidy programme  
Subsidy for  the Costs of Installation and Management of Telemetering Systems . 
2. Period covered by the notification  
2021-2022. 
3. Policy objectives and/or  purpose of the subsidy  
To support the costs of the installation and management of metering systems installed and manag ed 
for the purpose of improving air quality through constant metering of air pollutants emitted from 
business sites.  
4. Background and authority for the subsidy  
Laws: Clean Air Conservation Act (Article 81), Special Act On The Improvement Of Air Control In Ai r 
Control Zones (Article 39) . 
Authority : Ministry of Environment . 
5. Form of the subsidy  
Grants . 
6. To whom and how the subsidy is provided  
Recipients : SMEs under Article 3 of the Enforcement Decree of the Framework Act on Small and 
Medium Enterprises that have installed metering devices in accordance with the regulations of 
Article  17 of the Enforcement decree of Clean Air Conservation Act and Article 22 of the Enforcement 
decree of Special Act on the Improvement of Air Control in Air Control Zones, and who se business 
sites transmit the metered results to a Clean SYS control centre . 
Terms : Support for the costs of installation and management of Telemetering systems (40 % from 
the central  government and 20 % from the local government) . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2021 2022 
Lump sum transfer ( a) 1,974  1,974  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  1,974  1,974  
* The subsidy effect is estimated based on the difference between the loan rate and the market rate.  
8. Duration of the subsidy  
No fixed time period.  
9. Statistical  data permitting an assessment of the t rade effects of the subsidy  
None. 
 
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