Korean EV Subsidies to Favor Domestic Cars

By Jo Jae-hee | February 03, 2023 12:16
New subsidies for electric cars will markedly favor Korean-made cars as the government reveals new guidelines.The new rules take into account not only engine capacity but also after-sales service infrastructure and energy storage technology. This will end up favoring Korean-made cars over imports, with the difference in subsidies increasing to as much as W1 million (US$1=W1,220).The price limit for EVs eligible for 100 percent subsidies will rise from W55 million to W57 million. Mid-range cars costing between W57 million to W85 million will qualify for 50 percent subsidies and premium cars above that for none.Mid-size to large cars qualify for subsidies of up to W5 million, compact cars for up to W4 million and subcompacts for up to W3.5 million.
Previously there were only two criteria -- up to W6 million for compact to large cars and W4 million for subcompacts, so the new rules will increase the number of cars eligible for subsidies.EVs made by carmakers with a tightly knit after-service network will be eligible for the full subsidy, and importers who rely on outsourcing their after-service here only for 90 percent. After protests from importers, the government said imported EVs will also qualify for the full subsidy if foreign automakers train mechanics at the service centers.If domestic automakers as well as BMW, Honda, Mercedes-Benz, Toyota and Volkswagen achieve their targeted supply of EVs and other eco-friendly cars, an additional subsidy will double from W700,000 to W1.4 million per car. 

Most Read


맨 위로