Electric Vehicle Subsidy Regulatory Guidance
Beginning in 2015, the Korean government has announced annual guidance on electric vehicle purchase subsidies that are aimed at supporting EV adoption. Overall annual budgets and specific guidance on calculating the exact amount subsidies provide per vehicle are announced at the beginning of the year.
The 2024 guidance provides KRW 1.7 trillion in subsidies. Funding is further broken down by vehicle category:
- KRW 932 billion for light-duty passenger vehicles
- KRW 140 billion for light- and medium-duty commercial vehicles
- KRW 630 billion for heavy-duty commercial vehicles
Specific subsidy amounts are set for each vehicle model and determined by a range of factors including battery efficiency, ease of recycling, operations and maintenance availability, and vehicle cost.
The official intent behind the 2024 changes is identified as the following:
- Encouraging adoption of safe and efficient electric vehicles by encouraging longer-range vehicles
- Encouraging batter technology innovation
- Encouraging manufacturer support for vehicle maintenance
- Targeting adoption by disadvantaged communities
However, media reports have suggested that the changes are aimed at protecting domestic manufacturers against imported electric vehicles.
Want to know more about this policy ? Learn more (Korean)