"20 Trillion Invested in Electric and Hydrogen Vehicle Distribution... Creating 150,000 Jobs"

Ministry of Environment Promotes 'Eco-Friendly Future Mobility Distribution Project' as Part of Green New Deal
Eco-Friendly Transition of Automotive Industry...Reducing Greenhouse Gases and Fine Dust in Transportation Sector

[Asia Economy Reporter Kim Bo-kyung] The government plans to invest over 20 trillion won in fiscal resources by 2025 to increase the number of electric vehicles and hydrogen vehicles to 1.13 million and 200,000 units respectively, while expanding infrastructure.

On the 22nd, the Ministry of Environment announced that it will promote the "Eco-friendly Future Mobility Distribution Project" as part of the Green New Deal policy. The plan involves concentrated investment of 20.3 trillion won (including local government funds) by 2025 to increase the distribution of eco-friendly vehicles such as electric and hydrogen cars.

The Ministry of Environment stated, "We will accelerate the green transition of the automotive industry structure through bold fiscal investment," and added, "We plan to lead so that Korea's automotive industry can secure a competitive edge and dominate the global future car market."

It continued, "We will create 151,000 jobs and drastically reduce greenhouse gases and fine dust emissions generated in the transportation sector."

The Eco-friendly Future Mobility Distribution Project consists of detailed tasks including ▲electric vehicle distribution ▲hydrogen vehicle distribution ▲eco-friendly conversion of old diesel vehicles.

Target of 1.13 million cumulative electric vehicles... Expansion of charging infrastructure

In five years, a cumulative total of 1.13 million electric vehicles (passenger cars + buses + trucks, etc.) will be distributed, and charging infrastructure will be expanded to a cumulative 45,000 units (15,000 fast chargers, 30,000 slow chargers). The budget required is approximately 8.1 trillion won.

Currently, the number of electric vehicles distributed is 113,000 units, and there are 22,000 electric vehicle chargers (7,000 fast chargers, 15,000 slow chargers).

The Ministry of Environment plans to extend the subsidy support period up to 2025, expand the support volume, and promote improvements such as extending tax benefits and revising the charging fee system. In addition to supporting R&D projects for improving electric vehicle performance and components, the ministry will strengthen the "Low Emission Distribution Target System" to secure supply volume.

Hydrogen vehicles to increase types including buses and trucks, aiming for 200,000 units distributed

Hydrogen vehicles are planned to reach a cumulative distribution of 200,000 units by 2025. Hydrogen vehicles have advantages over electric vehicles such as longer driving range, shorter charging time, and lighter weight. The distribution types will be expanded to include mid-to-large SUVs as passenger cars, as well as buses and trucks.

Hydrogen buses will start mass production and distribution of city buses this year, and will expand to medium- and long-distance buses according to vehicle characteristics, aiming to distribute 4,000 units by 2025. Based on an agreement signed in May among the government, manufacturers, and logistics companies, hydrogen trucks will be distributed with a pilot project of 5 units in the metropolitan and Chungcheong areas next year, followed by a total of 645 units by 2025. A budget of 5.4 trillion won will be invested over five years for hydrogen vehicle distribution.

Fuel subsidies will be provided for commercial hydrogen vehicles. The support amount is expected to be about 3,500 won/kg for hydrogen buses and may vary depending on future hydrogen prices. Starting with hydrogen buses in 2021, the target will be expanded.

A total of 450 hydrogen charging stations will be established by 2025. Public land suitable for hydrogen station installation will be secured, and a policy council among the government, local governments, and operators will be operated to ensure rapid establishment.

Zero old diesel vehicles by 2024... 1.52 million units to undergo low-emission measures

The Ministry of Environment is pushing for zero old diesel vehicles by 2024. To this end, it plans to expand eco-friendly conversions such as liquefied petroleum gas (LPG) conversion, diesel particulate filter (DPF) installation, and early scrapping.

As of the end of June this year, about 1.84 million old diesel vehicles, including those classified as emission grade 5 nationwide, are registered, of which 1.52 million require low-emission measures.

The Ministry of Environment will provide early scrapping subsidies for 1.16 million old diesel vehicles and support DPF installation for 315,000 vehicles from next year through 2024 to implement low-emission measures.

The LPG vehicle conversion support project will be further expanded to support 135,000 livelihood vehicles of 1-ton trucks and 88,000 children's school vehicles from next year through 2025.

The Ministry of Environment expects that 151,000 jobs will be created through this project. The job creation effects by detailed projects are ▲electric vehicle distribution 67,000 ▲hydrogen vehicle distribution 37,000 ▲automobile emission management 26,000 ▲LPG vehicle conversion support 5,000 ▲R&D projects 3,000 ▲other inter-ministerial projects 13,000.

Choi Jong-won, Director of Air Environment Policy at the Ministry of Environment, said, "The transition to eco-friendly vehicles including the expansion of electric and hydrogen vehicles will contribute to the transition to a net-zero society as well as strengthening industrial competitiveness."

He added, "To overcome the economic crisis caused by COVID-19 and the climate and environmental crises, we will actively communicate with industries and local governments and carry out the eco-friendly future mobility transition project without any setbacks."

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