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RFS implementation in Korea still foggy

South Korea’s Ministry of Knowledge Economy (MKE) and the Korea Institute of Petroleum Management held a public hearing on October 27 regarding the implementation of the country’s Renewable Fuel Standard (RFS). The date for implementation could not be set yet because its agreement with the Ministry of Strategy and Finance (MOSF) has not been reached. The MOSF recently made a preliminary announcement of legislation of tax reforms to reduce the level of tax exemptions on biodiesel fuels, citing reasons of decrease in tax revenues, thus presenting a setback in the country’s mid- to long-term biodiesel fuel supply plan. This bill is to be considered as a revision of the Tax Incentive Limitation Law at the National Assembly’s deliberation on the budget bill. (October 29, 2010)