This December will be one of the best times to replace an old diesel vehicle in Korea, thanks to the government’s tax breaks along with local carmakers’ discount offers.

According to the Ministry of Strategy and Finance Monday, the government will provide those who want to replace an old diesel car registered before December 31, 2006, a deduction up to 70 percent, or 1 million won, in individual sales tax. Combined with breaks on mandatory taxes including education (300,000 won) and value-added taxes (130,000 won), a car buyer can save up to 1,430,000 won ($1,222) in taxes.

The program will run from December 5 this year to the first half of next year. The new tax break scheme was introduced as part of the government’s efforts to boost consumption and resolve environmental concerns. The government earlier this year extended last year’s tax incentive program for all types of vehicles until June this year in a move to jack up domestic spending. After the end of the previous subsidy program, local auto makers have suffered from a plunge in their vehicle sales in the domestic market.

Moreover, the nation’s five automakers - Hyundai Motor Co., Kia Motors Corp., GM Korea Ssangyong Motor Co. and Renault Samsung Motors Co. - will provide separate discount offers that would help car buyers to save up to 30 percent in sales taxes.

The nation’s largest automaker Hyundai Motor and its smaller sibling company Kia Motors will offer discount from 300,000 won to 1,200,000 won for any owners of old diesel cars upon purchase of a new car, such as Hyundai’s Accent, Avante, i30, Grandeur and Genesis, as well as Kia’s Morning, Ray and Niro.

With all those tax breaks and discount offers combined, a buyer could get a discount of up to 5,470,000 won for each model.

By Park Chang-young

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