ANNOUNCEMENT 01 Jul 2014

In July 2014, the government of Republic of Korea announced a change in import formalities.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising
Inception date: 01 Jul 2014 | Removal date: open ended
Still in force

Internal taxation of imports

Starting from 1 July 2014, an individual consumption tax has been imposed on imported coal used for power generation. Coal used for purposes besides power generation was exempted from this tax. 
The idea of the tax policy revision was introduced last November through the press release of the government. In the announcement, it said that the purpose of this measure is to tackle the excessive electricity consumption and to rationalize domestic energy price structure.

Tariff changes on 1 July 2014:
Coal for power generation:

  • Net calorific value below 5,000 kcal/kg: 0 -> 17 KRW (ca. 0.016 USD) per kg
  • Net calorific value above 5,000 kcal/kg: 0 -> 19 KRW (ca. 0.018 USD) per kg

AFFECTED SECTORS

 
Inception date: 01 Jul 2014 | Removal date: open ended
Still in force

Internal taxation of imports

On the same day, taxes on other alternative imported fuels - namely liquefied natural gas (LNG), kerosene and propane - were lowered.

Namely:

  • LNG: 60 -> 42 KRW (ca. 0.056 -> 0.039 USD) per kg
  • Kerosene: 90 -> 63 KRW (ca. 0.085 -> 0.059 USD) per litre
  • Propane: 20 ->14 KRW (ca. 0.019 -> 0.013 USD) per kg