Next Year: 430,000 EVs to Receive 'KRW 2 Trillion in Subsidies'... Kim Seonghwan Urges Public to Join EV Transition.

[Warning Lights Flashing for EVs] Climate Ministry Unveils Record-High Subsidies and EV Transition Campaign

The government will expand the number of electric vehicle purchases eligible for subsidies next year to 430,000 and launch an electric vehicle transition campaign. As demand for electric vehicles slows and Chinese-made electric vehicles begin entering the domestic market in earnest, the plan is intended to ease the burden of buying a vehicle and accelerate adoption.

Kim Seonghwan, Minister of Climate, Energy and Environment, became the first to sign the electric vehicle transition campaign on the 2nd. The Climate Ministry.

According to the Ministry of Climate, Energy and Environment on November 4, next year’s budget for electric vehicle adoption will be KRW 2.1403 trillion, up 32.8% from KRW 1.6114 trillion this year. By vehicle type, electric passenger cars account for the largest share, at 368,160 vehicles, up 41.6% from this year, with a budget of KRW 1.1404 trillion. The number of electric cargo vehicles eligible for support will increase from 35,837 to 61,000, a 70.2% increase, outpacing the growth rate for passenger cars.

The number of electric passenger vans will rise from 3,500 to 4,500. However, the subsidy per vehicle will be adjusted by type. Subsidies will remain at around KRW 3 million for medium- and large-sized electric passenger cars and KRW 70 million for electric passenger vans, while the subsidy for small electric cargo vehicles will be reduced from KRW 10 million to KRW 8 million. Rather than raising subsidy rates across the board, the government is aiming to expand the number of eligible vehicles and increase overall adoption. The number of vehicles eligible for an additional purchase-transition subsidy of up to KRW 1 million—available to people who scrap or sell an internal combustion engine vehicle they have owned for at least three years and then buy an electric vehicle—will also increase from 176,500 to 186,820. Commercial vehicles, including taxis, will be eligible as well.

However, there is debate over how much the actual benefits for electric vehicle buyers will increase. Next year, the cap on the individual consumption tax deduction for electric vehicles is scheduled to fall by KRW 1 million, from KRW 3 million to KRW 2 million. Some argue that subsidies should have been increased further to offset the reduction in tax benefits and maintain the level of support consumers actually feel. In addition, electric vehicle subsidies are jointly funded by the central government and local governments, so local governments will also need to secure budgets as the number of subsidized vehicles rises. With some local governments, including Gyeonggi Province, having declared a fiscal emergency, it is unclear whether they can provide their share of the funding for as many vehicles as the government has added.

The government will also launch a public-participation electric vehicle transition campaign using Carbon Neutrality Points. The Ministry of Climate, Energy and Environment began the Electric Vehicle Transition Pledge Campaign on November 2, targeting employees of the ministry and its affiliated organizations. The general public can participate starting November 27 through the Carbon Neutrality Points integrated website and the Carbon Pay app. Minister Kim Seonghwan also joined ministry employees in signing the pledge first. From January through September this year, 297,000 newly registered electric vehicles accounted for 23.8% of all newly registered vehicles, an increase of more than 70% from the same period last year. The government aims to raise the share of zero-emission vehicles among new cars to 40% by 2030.

Minister Kim Seonghwan said, "We set out on the road every day. Whether commuting or traveling, the choice of transportation can gradually shape the future of our planet." He added, "Each of your signatures, one by one, will come together to change the climate of tomorrow. The Ministry of Climate, Energy and Environment will lead that change."

This content was produced with the assistance of AI translation services.