The Korean government has confirmed that it is to allow the sale of diesel-powered passenger cars in Korea beginning January 2005.

'The Korean government is moving to protect the local auto industry by bolstering the industry leaders such as Hyundai Motor and Kia Motors,' Kim Sang-ik, an auto analyst with Daishin Securities told 'Automotive News'.

'It thinks more diesel car exports to the European market are needed as South Korean automakers, including Hyundai and Kia Motors, are depending on the US market too much.'

Some players in the industry, such as Renault Samsung, have criticized the decision but it could prove to be a boost to the platinum industry, particularly in light of the imminent pollution standards timetable for diesel cars.

Catalytic convertors for diesel engines can only use platinum as opposed to gasoline engines convertors which tend to use a mixture of palladium and rhodium, platinum and rhodium or even all 3 metals.