G/SCM/N/372/KOR  
7 July 2021 
(21-5375) 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  and received on 30  June 2021, 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 without prejudice to the 
legal status and nature , including specificity, or effects of the notified programmes or measures 
under the ASCM and G ATT 1994 . 
Table of Contents  
I. AGRICULTURE  ................................ ................................ ................................ ............  2 
A. Foodgrain Management Programme  ................................ ................................ ................  2 
B. Variable Direct Payment for Rice  ................................ ................................ .....................  3 
C. Support For Marketing And Promotion Of Agricultural And Livestock Products  .......................  4 
D. Support For Livestock Products  ................................ ................................ ......................  5 
II. FORESTRY  ................................ ................................ ................................ .................  6 
A. Wood Utilization  Assistance Programme  ................................ ................................ ...........  6 
III. FISHERIES  ................................ ................................ ................................ ...............  7 
A. Support for Management of Fisheries  ................................ ................................ ..............  7 
B. Support  for Aquaculture  Fishery  Development  ................................ ................................ .. 7 
C. Support for Vessel Decommissioning  ................................ ................................ ...............  8 
D. Support for Management  of Overseas Fisheries  ................................ ................................  9 
E. Support  for Fisheries  Resources Management  ................................ ................................ . 10 
IV. ENERGY  INDUSTRY  ................................ ................................ ................................ . 11 
A. Coal Industry Support  ................................ ................................ ................................ . 11 
V. MANUFACTURING INDUSTRY  ................................ ................................ ...................  12 
A. Tariff Reduction on Aircraft Parts  ................................ ................................ ..................  12 
B. Support for Farm Machinery Manufacturing  ................................ ................................ .... 13 
VI. ENVIRONMENT, RESEARCH AND DEVELOPMENT  ................................ .....................  14 
A. Environmental Improvement Loan Programme  ................................ ...............................  14 G/SCM/N/372/KOR  
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  B. Support for R&D of Environmental  Technology Development Projects  ................................  15 
C. Emission Reduction Project for In-use Diesel Vehicles ................................ ......................  15 
D. Natural Gas Bus Supply Project  ................................ ................................ ....................  17 
E. Hydrogen Fuel Cell Vehicle  Distribution  ................................ ................................ ..........  18 
F. Loan Programme  for Recycling  Industry Promotion  ................................ ..........................  19 
G. Support for Telemetering Systems  ................................ ................................ ................  20 
H. Project on the Distribution Of Low NOX Burners  ................................ .............................  21 
I. Development of Core Technology in Industrial Fields  ................................ ........................  22 
J. Loan Programme for R&D of information and Communication Technology  ...........................  22 
I. AGRICULTURE  
A. Foodgrain  Management Programme  
1. Title of the subsidy programme  
Foodgrain Management Programme.  
2. Period covered by the notification  
2019-2020. 
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. Recipients  and terms  
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 duration : fixed rate  (2.5~3.0 %) or variable rate, 12 months  G/SCM/N/372/KOR  
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  7. Amount of the subsidy  
(Unit: million  KRW) 
* 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. 
8. Duration of the subsidy  
No fixed duration.  
9. Trade 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. 
B. Variable Direct Payment for Rice  
1. Title of the subsidy programme  
Variable Direct  Payment for Rice.  
2. Period covered  by the notification  
2019-2020. 
3. Policy objective  and/or purpose of the subsidy  
To stabilize  the income of rice producing farmers against the price fall of rice.  
4. Background  and authority for the subsidy  
Law: (former) Act on P reserving Agricultural Income  (Article 4). 
Authority :  Ministry of Agriculture, F ood and Rural Affairs  
5. Form of the subsidy  
Grants  
6. Recipients and terms  
Recipients : The farmhouses whose use of agrochemicals and chemical fertilizers meets the standard, 
among those who produce rice by storing water in the rice fields that were used for rice farming 
from 1998 to 2000.  
Content of the subsidy:  Partial support for the difference  in amount  between the target  price and 
the actual average price during the harvesting season of the year.  Item  Type  2019 2020 
Grains  
(except for  rice) Direct subsidy  (a)  - - 
Loan 15,611  9,400  
Benefit of loan* (b)  - - 
Total(a+b)  - - 
Soybeans  Direct subsidy ( a) 73,976  2,822  
Loan - - 
Benefit of loan * (b) - - 
Total ( a+b) 73,976  2,822  G/SCM/N/372/KOR  
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  7. Amount of the subsidy  
(Unit: million  KRW)  
Type  2019 2020 
Lump sum transfer   111,433  - 
8. Duration of the subsidy  
No fixed period.  
9. Trade effects  of the subsidy  
There had been minimal effect on trade because the program  was implemented in order t o stabilize 
the income of domestic rice producing farmhouses . In addition , this program has been abolished in 
2020.  
C. Support For Marketing And Promotion Of Agricultural And Livestock Products  
1. Title of the subsidy  programme  
Support for Marketing and Promotion of Agricultural and Livestock Products.  
2. Period covered by the notification  
2019-2020. 
3. Policy ob jective 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 Agricultur e and Fisheries,  Rural Community and Food Industry ( Article  59). 
Authority : Ministry  of Agriculture, Fo od and Rural Affairs . 
5. Form of the subsidy  
Grants.  
6. Recipients  and terms  
Recipients : Exporte rs of fruits, flowering plants, Kimchi, vegetables, ginseng, and livestock products.  
Content  of the subsidy:  Partial support for  costs in sorting, packaging, and transporting.  
7. Amount  of the subsidy  
(Unit: million  KRW)  
Type  2019 2020 
Lump sum transfer  34,415  39,044*  
* Please note that the data for 2020 are provisional and subject to amendment.  
8. Duration  of the subsidy  
No fixed time period.  G/SCM/N/372/KOR  
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  9. Trade 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 trade is expected to be 
minimal . 
D. Support For Livestock Products  
1. Title of the subsidy programme  
Calf Breeding Sta bilization Schedule . 
2. Period covered by the notification  
2019-2020. 
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. Recipients and terms  
Recipients : Cow raising farmers who joined the Calf Breeding Stabilization Schedule . 
Contents of the subsidy : Support i s 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  2019 2020 
Lump sum transfer  315 243 
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
The impact of the programme on trade is expected to be minimal because the purpose of the 
programme  is to stabilize the income of farmers  and the amount of the subsidy accounts only for 
0.005 % of the total value of beef production.  G/SCM/N/372/KOR  
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  II. FORESTRY  
A. Wood Utilization  Assistance Programme  
1. Title of the subsidy programme  
Wood  Utilization  Assistance Programme . 
2. Period covered by the notification  
2019-2020. 
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. Recipient and term s 
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)  
 2019 2020 
Lump sum transfer (a)  - - 
Loan 1,440  772 
Benefit of loan*  (b) 23 8 
Total (a+b)  23 8 
* 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. Trade 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/372/KOR  
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  III. FISHERIES  
A. Support for Management of Fisheries  
1. Title of the subsidy programme  
Support for Management of Fisheries . 
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To support  fishermen including aquaculture farmers suffering from worsened business conditions 
such as disasters like Typhoons and high-water  temperatures, by reliev ing financial  burden and 
maintaining stable management . 
4. Background and authority for the subsidy  
Law: Fisheries  Act (Article 8 6). 
Authority : Ministry of Oceans and Fisheries . 
5. Form of the subsidy  
Grants and l oans. 
6. Recipient s and terms  
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)  
 2019 2020 
Lump sum transfer ( a) - - 
Loan 2,296,700  2,337,000  
Benefit of loan* ( b) 61,991  57,957  
Total ( a+b) 61,991  57,957  
* 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. Trade effects of the subsidy  
The impact on trade  is difficult to estimate since the programme  is not trade -conditioned.  
B. Support  for Aquaculture  Fishery  Development  
1. Title of the subsidy programme  
Support  for Aquaculture Fishery Development.  G/SCM/N/372/KOR  
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  2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To ensure a stable supply of fishery products through the development of aquaculture fishery  in the 
context of changing cir cumstances in the production environment for domestic and overseas  
fisheries.  
4. Background and authority for the subsidy  
Law: Fisheries Act (Article 86 ). 
Authority : Ministry of Oceans and Fisheries.  
5. Form of the subsidy  
Grant s and loan s. 
6. Recipient s and terms  
Recipient s: Aquaculture fishermen.  
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)  
 2019 2020 
Lump sum transfer ( a) 16,666  15,442  
Loan 2,240  2,240  
Benefit of loan* ( b) 18 18 
Total ( a+b) 16,684  15,460  
* 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. Trade effects of the subsidy  
The impact on trade  is difficult to estimate since the programme  is not trade -conditioned.  
C. Support for Vessel Decommissioning  
1. Title of the subsidy programme  
Support for Vessel Decommissioning.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To reduce coastal and offshore fleet size to the level appropriate for fishery resources in order to 
protect fish stocks and promote sustainable fisheries . G/SCM/N/372/KOR  
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  4. Background and authority for the subsidy  
Law: Act on Structural Improvements and Support for Domestic Fisheries (Article 13  and 14). 
Authority : Ministry of Oceans and Fisheries . 
5. Form of the subsidy  
Grant s. 
6. Recipient s and terms  
Recipient s: Coastal and offshore fishermen.  
Terms  of the grant : Offshore fishing vessel  decommissioning (government support 100%), coastal 
state fishing vessel decommissioning (government support 80 % and provincial support 20 %). 
7. Amount of the subsidy  
  (Unit: million  KRW)  
 2019 2020 
Lump sum transfer ( a) 32,772  74,650  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  32,772  74,650  
8. Duration of the subsidy  
The subsid y will continue until 20 23. 
9. Trade effects of the subsidy  
None. 
D. Support for Management  of Overseas Fisheries  
1. Title of the subsidy programme  
Support  for Management of Overseas  Fisheries. 
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To promote  business stabilization by supporting the process of business management such as income, 
social welfare, and insurance costs of sailors etc . 
To ensure  stable supply of fishery products by promoting business stabilization.  
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  
Grants . G/SCM/N/372/KOR  
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  6. Recipient s and terms  
Recipient s: Eligible distant water fishermen under the Di stant water Fisheries Development Act.  
Terms : Restrictions for eligibility by operators who have been punished with suspension of fishing 
above  a certain level for violation of compliance  with the rules under the Distant Water Fisheries 
Development Act, including the conservation and management  measur es by coastal states and 
regional fisheries management organizations (RFMOs).  
7. Amount of the subsidy  
  (Unit: million  KRW)  
 2019 2020 
Lump sum transfer ( a) 1,384  875 
Loan - - 
Benefit of loan  (b) - - 
Total ( a+b) 1,384  875 
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
The impact on trade  is difficult to estimate since the programme  is not trade -conditioned.  
 
E. Support  for Fisheries  Resources Management  
1. Title of the subsidy programme  
Support for Fisheries R esources Management . 
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To ensure sustainable use and conservation of fisher y resources and furthermore  to foster 
scientific /technical knowledge in resource management including self -management  of fisheries . It 
includes sea reforestation projects, developing marine ranch, marine forests and artificial reef as 
well as implementation of resource management  and restoration measures such as TAC and self -
management in fisheries.  
4. Background and authority for the subsidy  
Law: Fishery Resources  Management Act, Fisheries Act . 
Authority : Ministry of Oceans and Fisheries.  
5. Form of the subsidy  
Grants  and Loans. 
6. Recipient s and terms  
Recipient s: National  and private institutes including National I nstitute of Fisheries Science (NIFS), 
fishermen and fishing communities involved in fisheries management (TAC, self -management in 
fisheries, etc.)  G/SCM/N/372/KOR  
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  7. Amount of the subsidy  
(Unit: million  KRW)  
 2019 2020 
Lump sum transfer ( a) 115,803  104,923  
Loan 8,274  8,274  
Benefit of loan * ( b) - - 
Total ( a+b)* 115,803  104,923  
* The benefit of loan is under process of estimation and is to be updated . 
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
The impact on trade  is difficult to estimate since the programme  is not trade -conditioned . 
IV. ENERGY  INDUSTRY  
A. Coal Industry Support  
1. Title of the subsidy programme  
Coal Industry  Support in the Special Accounting  for Energy and Resource.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
- To stabilize the price of coal and briquettes in order to prot ect the livelihoods of  ordinary 
people and ensure a stable supply and demand of coal . 
- To compensate for  the difference  between the production cost and s ale price of  coal and 
briquettes following the notification of a sale price ceiling.  
4. Background and authority for the subsidy  
Law: 
- Price Stabilization Act  (Article 2 ) 
- Coal Industry  Act (Article 29) . 
Authority : Ministry of Trade, Industry & Energy.  
5. Form of the subsidy  
Grants.  
6. Recipient s and term s 
The subsidy is provided to coal mine operator s, briquette manufacturer s, and co al miners in the  
form of worker 's compensation insur ance, support for briquette manufacturing cost s and educational 
expenses.  G/SCM/N/372/KOR  
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  7. Amount of the subsidy  
 (Unit: million  KRW)  
 2019 2020 
Lump sum transfer (a)  99.588  91.321  
Loan - - 
Benefit of loan * (b) - - 
Total (a+b)  99.588  91.321  
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
None.  
V. MANUFACTURING INDUSTRY  
A. Tariff Reduction on Aircraft Parts  
1. Title of the subsidy programme  
Tariff Reduction  on Aircraft Parts . 
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose of the subsidy  
To reduce production costs by encourag ing the importation of aircraft parts  not domestically 
produced.  
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. Recipients and terms  
Those designated  as aircraft manufacturers or repairer s in accordance with the Promotion Act for 
the Development of Aircrafts and Space Industries.  
7. Amount of the subsidy  
 (Unit: million  KRW)  
 2019 2020 
Lump sum transfer (a)  111,172  53,045  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  111,172  53,045  
8. Duration of the subsidy  
For business es (reduction rate applied)  G/SCM/N/372/KOR  
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  - Products listed in the Annex to the Agreement on Trade in Civil Aircraft : 100% (1 May 2019-2021)  
→ 80% (2022) → 60% (2023)→ 40% (2024) → 20% (2025) → abolition(after 2026) . 
- Other aircraft parts : 90% (1 May 2019~) → 80% (2020) → 70% (2021)→ 60% (2022) → 
50% (2023) → 40% (2024) → 20% (2025) . 
For SMEs : 100% 
9. Trade effects of the subsidy  
As the tariff reduction  is aimed at promoting importation of aircraft parts there  is no effect on trade . 
B. Support for Farm Machinery Manufacturing  
1. Title of the subsidy programme  
Support  for Farm Machinery Manufacturing.  
2. Period covered by the notification  
2019-2020. 
3. Policy objective and/or purpose of the subsidy  
To assist off -season  manufacturing of farm machinery and to help machinery  manufacturers  meet 
the high  demand for farm machinery in the  farming seasons.  
To promote the manufacturing and supply of high -quality agricultural machinery made in  Korea , by 
providing  financial resources for establishing production facilit ies 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. Recipients and terms  
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) 
8. Duration of the subsidy  
No fixed time period.  Type 2019 2020 
Direct subsidy (a)  - - 
Loan 166,208  183,523  
Benefit of loan* (b)  1,429  862 
Total (a+b)  1,429  862 G/SCM/N/372/KOR  
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  9. Trade 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.  
VI. ENVIRONMENT, RESEARCH AND DEVELOPMENT  
A. Environmental Improvement Loan Programme  
1. Title of the subsidy programme  
Environmental  Improvement Loan Pr ogramme.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To grant  private loans at lower interest rates to small and medium business es for investment in 
environmental  improvements such as installing pollution prevention facilities with an aim to promote  
environmental protection.  
4. Background and authority for the subsidy  
Laws: Framework  Act on Environmental Policy (Article 56). 
 Chemical control  Act (Article 4) 
 Korea Enviro nmental  Industry &Technology Institute ACT (Article 6).. 
Authority : Ministry of Environment , Korea Enviro nmental Industry & Technology Institute  
5. Form of the subsidy  
Loans . 
6. Recipient s and terms  
Recipients : small and medium busines s that install and operate pollution prevention devices  
and facilities.  
Terms of the loan: 4-year equal repayment period with a 3 -year grace period . 
7. Amount of the subsidy  
(Unit: million KRW)  
 2019 2020 
Lump sum transfer ( a) - - 
Loan 62,000  49,633  
Benefit of loan * (b) 1,234  993 
Total ( a+b) 1,234  993 
* 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.  G/SCM/N/372/KOR  
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  9. Trade effects of the subsidy  
None. 
B. Support for R&D of Environmental  Technology Development Projects  
1. Title of the subsidy programme  
Support for R&D of Environmental Technology Development Projects.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
For sustainable  development of environment al conservation and the national economy.  
4. Background and authority for the subsidy  
Laws: Environmental  Technology and Industry Support Act (A rticle 5). 
Authority : Ministry of Environment.  
5. Form of the subsidy  
Grants . 
6. Recipient s and terms  
- 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)  
 2019 2020 
Lump sum transfer  (a) 215,085  252,781  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  215,085  252,781  
8. Duration of the subsidy  
No fixed time period.  
9. Trade 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.  
C. Emission Reduction Project for In-use Diesel Vehicles  
1. Title of the subsidy programme  
Emission Reduction Project for In -use Diesel Vehicles.  G/SCM/N/372/KOR  
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  2. Period covered by the notification  
2019-2020. 
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.  
5. Form of the subsidy  
Grants . 
- Source of funding : Special Account for Environmental Improvement.  
6. Recipient s and terms  
Recipients : 
- Diesel vehicles that fail the emission test on designated diesel vehicles* under 
Paragraph 1  of Article 25 of the Special Act on the Improvement clean Air in the 
Management Area . 
- Diesel vehicles other than designated diesel vehicles* that fail the emission test on in-
use automobiles under Article 57 of the Clean Air Conservation Act.  
- Diesel vehicles with expired exhaust gas guarantee period that fail the emission test on 
manufactured vehicles.  
* Designated  diesel vehicles : diesel vehicles designated by the Special Act on the Improvement clean Air in the 
Management Area  
Terms : 
- To support  part of  the costs (90%) of installing emission reduction devices  and 
retrofitting with "cleaner" engines , and to compensate the remaining value (100%) of 
the vehicles  for early scrapping . 
- 50% each from central government and local  government expenditure s. 
7. Amount of the subsidy  
  (Unit: million  KRW) 
 2019 2020 
Lump sum transfer ( a) 649,548  555,209  
Loan - - 
Benefit of loan  (b) - - 
Total (a+b)  649,548  555,209  
8. Duration of the subsidy  
No fixed time period.  G/SCM/N/372/KOR  
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  9. Trade 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 trad e 
barrier . 
D. Natural Gas Bus Supply Project  
1. Title of the subsidy programme  
Subsidy for Natural Gas Vehicle Procurement and Fuel Expenses.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To replace frequently -operated and high -exhaust diesel engine buses and garbage trucks  with low-
emission  and cleaner vehicles in order to expedite the amelioration of air quality in metropolitan 
areas.  
4. Background and authority for the subsidy  
Laws: Clean Air Conservation Act (A rticle 58). 
Authority : Ministry of Environment.  
5. Form of the subsidy  
Grants . 
6. Recipient s and terms  
Recipients : 
- In accordance with the Clean Air Conservation Act, grants for natural gas vehicle 
procurement are provided to persons who  purchase natural gas vehicle s. 
- In accordance with the Clean Air Conservation Act, grants for fuel expenses are provided 
to persons who  intend to supply natural gas for vehicle s that use natural gas as fuel.  
Terms : Subsidized by local government (50 %, matching fund) . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2019 2020 
Lump sum transfer  (a) 17,346  10,840  
Loan   
Benefit of loan  (b)   
Total (a+b)  17,346  10,840  
8. Duration of the subsidy  
No fixed time period.  G/SCM/N/372/KOR  
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  9. Trade effects of the subsidy  
The effect of the subsidy on trade is minimal since it is intended to support purchasers of natural 
gas buses and garbage trucks, without differentiation between domestic and imported vehicles, as 
well as natural gas suppliers to those vehicles, for the improvement o f air quality in metropolitan 
areas.  
E. Hydrogen Fuel Cell Vehicle  Distribution  
1. Title of the subsidy programme  
Hydrogen Fuel Cell Vehicle Distribution . 
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purp ose of the subsidy  
To tackle  air pollution . 
4. Background and authority for the subsidy  
Laws: Clean Air Conservation Act (A rticle 58). 
Authority : Ministry of Environment.  
5. Form of the subsidy  
Grants . 
6. Recipient s and terms  
Recipients : 
- Persons  who purchase hydrogen fuel cell vehicles or hydrogen bus.  
- Local authorities or private enterprises who install hydrogen refill stations . 
7. Amount of the subsidy  
(Unit: million  KRW)  
 2019 2020 
Lump sum transfer  (a) 226,408  317,550  
Loan   
Benefit of loan (b)   
Total (a+b)  226,408  317,550  
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
None. G/SCM/N/372/KOR  
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  F. Loan Programme  for Recycling  Industry Promotion  
1. Title of the subsidy programme  
Loan Programme for Recycling Industry Promotion.  
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To pro vide small and middle recycling  businesses with long-term and low interest rate loans  for 
recycling facility installation and stable business op eration with an aim to foster the recycling industry 
and prom ote resource  recovery from waste s. 
4. Background and authority for the subsidy  
Laws: Act on the Promotion of Saving and Recycling of Resources  (Article 31 ). 
Authority : Ministry  of Environment.  
5. Form of the subsidy  
Loans. 
6. Recipient s and terms  
Recipients : 
Recycling business  operators specified in Article 31 of  the Act on the Promotion of Saving and 
Recycling of Resources : 
- a business to install recycling facilities;  
- a resource recycling business conducted by the operators of designated recycling businesses and 
designated by -product discharging businesses;  
- a business to build a recycling complex;  
- a recycling business conducted by those who have obtained permission for intermediate waste 
disposal business or general waste disposal business ; and 
- a business of research and technical development to facilitate recycling of resources.  
7. Amount of the subsidy  
   (Unit: million  KRW)  
 2019 2020 
Lump sum transfer ( a)   
Loan 128,365  163,365  
Benefit of loan* ( b) 2,644  3,006  
Total ( a+b) 2,644  3,006  
 * 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.  G/SCM/N/372/KOR  
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  9. Trade effects of the subsidy  
None. 
G. Support for 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  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To support the costs of the installation and management of metering systems installed and managed 
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 (A rticle 81). 
Authority : Ministry of Environment.  
5. Form of the subsidy  
Grants . 
6. Recipient s and term s 
Recipient s: SMEs under Article 3 of the Enforcement Decree of the F ramework Act on Small and 
Medium  Enterprises that have installed metering devices  in accord ance with  the regulations of Article 
32 of the  Enforcement decree of Clean Air Conservation Act and Article 1 7 of the Enforcement decree 
of Special Act on Improvemen t of Atmospheric  Environment it Atmospheric Management areas, and 
whose business sites transmit the metered results to a Clean SYS control centre.  
Terms : Support  for the costs of installation and management of Telemetering systems (4 0%~60% 
from the central government and 2 0~40% from the local government).  
7. Amount  of the subsidy  
(Unit: million  KRW)  
 2019 2020 
Lump sum transfer (a)  19,528  11,587  
Loan   
Benefit of loan  (b)   
Total (a+b)  19,528  11,587  
8. Duration of the subsidy  
No fixed time period.  
9. Trade effects of the subsidy  
None. G/SCM/N/372/KOR  
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  H. Project on the Distribution of Low NOX Burners  
1. Title of the subsidy  programme  
Project for the Support for Low NOX Burner Installation.  
2. Period covered  by the notification  
2019-2020. 
3. Policy objectives  and /or purpose of the subsidy  
To support the installation of low NOX burners at small and medium business sites 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. 2009-26 (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 fund ing: Special Account for Environmental Improvement.  
6. Recipient s and term s 
Recipient s: SMEs under Article 3 of the Enforcement Decree of the Framework Act on Small and 
Medium Enterprises, 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 facilities).  
Terms: Fixed support according to volume (local governments provide a dditional support equal to 
40% of the central government 's support).  
* From 2015, new and replaced boilers that burn gas or light oils (e.g. diesel, kerosene)  with a capacity over 2  
tons were excluded.  
7. Amount of the subsidy  
(Unit: million  KRW)  
 2019 2020 
Lump sum transfer  (a) 8,246  6,095  
Loan   
Benefit of loan  (b)   
Total (a+b)  8,246  6,095  
8. Duration  of the subsidy  
No fixed time period.  
*Included in "Project on the Distribution of prevention facility in small company " after 01.01.2021.  G/SCM/N/372/KOR  
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  9. Trade effects  of the subsidy  
None 
I. Development of Core Technology in Industrial Fields  
1. Title of the subsidy programme  
Development of Core Technology in Industrial Fields . 
2. Period covered by the notification  
2019-2020. 
3. Policy objectives and /or purpose of the subsidy  
To support  the development of bottleneck technologies that occur due to rapid changes in the 
industrial environment, and to discover and validate promising core technologies for the upcoming 
future.  
4. Background and authority for the subsidy  
Law: Industrial Technology Innovation Promotion Act  
Authority : Ministry of Trade, Industry, and Energy. . 
5. Form of the subsidy  
Government  Contribution . 
6. Recipient s and term s 
Recipients : Small and medium -sized businesses, universities , and research institutes  
Terms : Subsidize for 1~2years, 500  million  KRW per year.  
7. Amount of the subsidy  
 (Unit: million  KRW)  
 2019 2020 
Lump sum transfer (a)  9,917  - 
Loan   
Benefit of loan  (b)   
Total (a+b)  9,917  - 
8. Duration of the subsidy  
Until 2019. 
9. Trade effects of the subsidy  
None 
J. Loan Programme for R&D of information and  Communication  Technology  
1. Title of the subsidy programme  
Loan Programme  for R&D of Information and Communication  Technology.  G/SCM/N/372/KOR  
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  2. Period covered by the notification  
2019-2020. 
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. Recipient s and term s 
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)  
 2019 2020 
Lump sum transfer (a)    
Loan 32,000  21,589 
Benefit of loan*  (b)   
Total (a+b)    
* 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. Trade effects of the subsidy  
None. 
 
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