Light Green License Plate Vehicles: Busan Leads, Not Seoul or Gyeonggi

Which city has the most registered vehicles with light green license plates? It turns out that a region other than Seoul or the Gyeonggi area has taken the top spot.

According to data submitted to Representative Park Seong-hoon of the People Power Party (Busan Buk) from the Ministry of Land, Infrastructure and Transport on the 27th, as of July 2023, there are a total of 38,540 registered vehicles with light green license plates across the country.

Among these, the highest number of vehicles, 9,111, are registered in Busan, followed by Incheon with 7,404 and Gyeongnam with 5,168. Both Seoul and Gyeonggi have relatively low numbers, with each having 3,445 registered vehicles.

Light green license plates are special plates that must be affixed to corporate vehicles used for business purposes with an acquisition price of over 80 million won. Not only corporate-owned vehicles but also leased or long-term rental vehicles must have light green license plates if they meet this criterion.

Cause of Regional Differences: 'Public Bond Purchase System'

Regarding the phenomenon of high-priced corporate vehicle registrations concentrated in Busan, the Ministry of Land, Infrastructure and Transport analyzed the regional differences in the 'Public Bond Purchase System' as a major cause.

When registering a new vehicle, it is mandatory to purchase public bonds according to the ratio set by each local government, and for Busan, this rate is 0%, meaning there is no additional burden at all.

In contrast, Incheon and Gyeongnam have a 5% public bond purchase rate, while Seoul applies a 20% rate, resulting in significant cost differences.

Public bonds are securities issued by local governments to secure funds for regional development or public projects. If held until maturity, the principal and interest can be returned, but this incurs an additional cost at the time of vehicle registration.

A representative from Park Seong-hoon's office stated, "The Ministry of Land, Infrastructure and Transport explained that it is highly likely that corporations or leasing/rental vehicle companies that handle many high-priced vehicles are concentrating their registrations in Busan."

Additionally, it was pointed out that "this represents a legal means of avoiding costs that takes advantage of tax differences between regions, which is far from the original intent of the system."

Meanwhile, the Busan city government provided a different viewpoint. A Busan city official stated, "It is difficult to explain the phenomenon of many light green license plate vehicles in Busan solely based on the public bond purchase rate," and added, "The public bond purchase rate is determined by ordinances set by each local government, so there are differences by region."

Image source: Reference photos for understanding the article / News1, example of light green corporate vehicle license plate / Lee Hyung-seok, Democratic Party of Korea, press release September 2020