Maximum Differential of Eco-Friendly Vehicle Subsidies at 2.15 Million KRW... Additional 10% Support for Lower-Income Groups

Electric and Hydrogen Vehicle Purchase Subsidy Support Expanded from 60,000 to 94,000 Units

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] The government has decided to improve the subsidy calculation system by clearly defining the national subsidy standards for electric vehicle purchases based on fuel efficiency and driving range, thereby expanding the subsidy differentiation range. As a result, the maximum differentiation range for passenger cars has increased from 1.44 million KRW to 2.15 million KRW.

On the 20th, the Ministry of Environment held the '2020 Zero-Emission Vehicle Promotion Policy Briefing' at the aT Center in Seocho-gu, Seoul, announcing these details. This measure addresses concerns that the minimal differentiation effect on performance lowers industrial competitiveness. The aim is to simultaneously encourage improvements in electric vehicle fuel efficiency and environmental enhancement.

Starting this year, the government will provide differentiated support ranging from 6.05 million KRW to 8.2 million KRW per passenger car, 1.5 million KRW to 2.1 million KRW for electric two-wheelers (lightweight), and 63.42 million KRW to 100 million KRW for buses (large).

For low-income households (those earning 50% or less of the median income), the subsidy amount for purchasing electric passenger cars will be increased by 10%, supporting up to a maximum of 9 million KRW. Additionally, measures to prevent fraudulent subsidy claims, such as false address registration, have been established. These include residency requirements in the relevant local government area for a certain period, and immediate recovery actions if fraudulent subsidy receipt is detected.

Furthermore, the Ministry of Strategy and Finance and the Ministry of Environment announced plans to expand the purchase subsidy support for electric and hydrogen vehicles to 94,000 units this year, a 57% increase from 60,000 units last year.

Regarding purchase subsidies, including national and local government funds, the maximum amounts are 18.2 million KRW for electric vehicles, 42.5 million KRW for hydrogen vehicles, and 3.3 million KRW for electric two-wheelers. To provide a convenient charging environment for electric vehicle users, plans include supporting 9,500 electric vehicle chargers and 40 hydrogen charging stations.

Prospective buyers of electric and hydrogen vehicles can visit nearby car dealerships to complete the purchase support application and contract forms for subsidy support. Local governments will announce their respective distribution projects between January and February.

Inquiries related to purchase subsidies can be addressed through the integrated electric and hydrogen vehicle call center, and information regarding subsidy applications is available on the official website.

A government official stated, "We plan to smoothly implement the improved subsidy system to open the era of 200,000 electric and hydrogen vehicles within this year," adding, "To successfully achieve the zero-emission vehicle distribution goals, we will continuously review subsidy levels and financial support ratios from a mid- to long-term perspective."

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