Korea to Tighten Fuel Efficiency Standards by 2012

Seoul December 26, 2007; The Digital Chosun Ilbo reported that Korea will strengthen its auto fuel efficiency standards by 2012 to reduce green gas emissions. This is expected to accelerate the development of eco-friendly cars including hybrids.

The Ministry of Commerce, Industry and Energy said Tuesday that it will tighten fuel economy standards for cars by 2012 by 15 percent compared to 2004 based on an agreement made with the auto industry in late 2005.

Automakers are making efforts not only to enhance fuel efficiency by reducing the size of cars and improving engines and transmissions but also by developing eco-friendly diesel and hybrid vehicles. But the industry predicts that research and development efforts will increase production costs, which in turn will increase car prices.