Hong Nam-ki: "Electric and Hydrogen Vehicle Budget Increased by 32% to 1.4 Trillion Won... Support for 136,000 Units" (Update)

Hong Nam-ki, Deputy Prime Minister for Economy and Minister of Strategy and Finance [Image source=Yonhap News]

[Asia Economy Reporter Kwangho Lee] Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, said on the 8th, "We will expand the budget for purchasing electric and hydrogen vehicles by 32% to 1.4 trillion won, supporting up to 136,000 vehicles, and especially double the support for electric commercial vehicles with significant environmental impact (from 13,000 to 25,000 vehicles), focusing on concentrated support."

At the 2nd Innovation Growth BIG3 (System Semiconductor, Future Cars, Bio Health) Promotion Meeting held at the Government Seoul Office on the same day, Deputy Prime Minister Hong stated, "Considering the global automobile market is rapidly reorganizing around electric and hydrogen vehicles, it is urgent to expand and reform the domestic market’s purchase support system, so we have prepared institutional improvement measures."

Deputy Prime Minister Hong also mentioned, "When calculating subsidies, the proportion of electric efficiency will be raised (from 50% to 60%), and local subsidies will be shifted from uniform payment to differentiated payment according to vehicle performance."

He continued, "We will differentiate subsidy support standards by price range from 0% to 100% to induce vehicle price reduction and foster affordable models, and to support small and medium-sized enterprises and small business owners, we will expand subsidies for ultra-small electric commercial vehicles (from 5.12 million won to 6 million won)."

Furthermore, he emphasized, "We will increase the subsidy unit price for electric taxis up to 10 million won, and accelerate the transition to zero-emission vehicles focusing on commercial vehicles with significant environmental improvement effects, such as newly establishing subsidies for hydrogen trucks and introducing fuel subsidies for hydrogen buses as pilot projects."

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