Seoul City to Supply 400 Additional Electric Cargo Vehicles... Purchase Subsidy of 27 Million Won per Vehicle

Support for Small Businesses Struggling Due to Air Quality Improvement and COVID-19
Up to 3 Million KRW Subsidy for 600 Electric Motorcycles... Applications Open from the 22nd

[Asia Economy Reporter Jo In-kyung] The Seoul Metropolitan Government announced on the 18th that it will supply an additional 1,000 electric vehicles, including electric cargo trucks and electric motorcycles, to support small business owners struggling due to the novel coronavirus infection (COVID-19). A supplementary budget of 12.2 billion KRW will be invested this year.

This support was prepared to supply an additional 400 electric cargo trucks and 600 electric two-wheelers, as the purchase subsidies were exhausted early due to high demand during the first subsidy application period on March 1.

Purchase subsidies vary by vehicle type, with 27 million KRW for 1-ton cargo trucks (small) and between 1.5 million to 3.3 million KRW for two-wheelers, depending on vehicle performance (fuel efficiency, driving range) and air quality improvement effects. Since the subsidies are paid by the city to vehicle manufacturers/importers, buyers only need to pay the difference between the vehicle price and the subsidy to the manufacturers/importers. Subsidies are provided in the order of vehicle delivery and registration.

However, citizens who receive subsidies must comply with a mandatory operation period of two years in Seoul, and if the vehicle is scrapped or transferred to another local government within this period, the subsidy must be returned.

Applications for additional subsidy supply will be accepted from the 22nd on the Ministry of Environment’s Low Emission Vehicle Integrated Website.

Applicants must be individuals, companies, corporations, or organizations who have resided in Seoul for more than 30 days as of the application date or have registered their business office in Seoul. Buyers must sign a purchase contract with the vehicle manufacturer/importer and have the vehicle delivered within two months; the manufacturer/importer will handle the subsidy application on behalf of the buyer.

Eligible vehicle models for subsidies include 19 types of electric cargo trucks and 50 types of electric two-wheelers. Detailed information on eligibility, application methods, and other requirements can be found in the announcement posted on the Seoul Metropolitan Government website.

In addition, Seoul provides an additional subsidy of 700,000 KRW per vehicle for scrapping old vehicles with emission grade 5 and purchasing electric vehicles, and up to 1 million KRW for residents of the Green Transportation Zone (Hanyangdoseong). National merit recipients, persons with disabilities, and multi-child families also receive an additional 500,000 KRW once per person, and an additional 200,000 KRW is provided when purchasing an electric two-wheeler after scrapping or discontinuing the use of an internal combustion engine two-wheeler.

Jo Wan-seok, Director of the Climate Change Response Division of Seoul, said, "With the additional supply of electric cargo trucks and electric two-wheelers, we aim to improve Seoul’s air quality and support small business owners struggling due to COVID-19. We will continue to strive to expand the supply of electric vehicles."

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