Electric and Hydrogen Vehicle Budget Increased by 32% to 1.4 Trillion Won...New Subsidies for Hydrogen Trucks and Double Support for Electric Cargo Vehicles (Comprehensive)

2nd Innovation Growth BIG3 Promotion Meeting

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance (Photo by Yonhap News)

[Asia Economy Reporter Kwangho Lee] As part of the government's eco-friendly vehicle support measures, a subsidy for hydrogen trucks will be newly established, and the subsidy for ultra-small electric cargo vehicles will be increased to 6 million won. The budget for purchasing support for electric and hydrogen vehicles will also be expanded to 1.4 trillion won, broadening the scope of beneficiaries.

Hong Nam-ki, Deputy Prime Minister and Minister of Economy and Finance, chaired the Innovation Growth BIG3 (System Semiconductors, Future Cars, Biohealth) Promotion Meeting at the Government Seoul Office on the 8th and stated in his opening remarks, "We will increase the budget for purchasing support for electric and hydrogen vehicles by 32% to 1.4 trillion won, supporting up to 136,000 vehicles," adding, "In particular, the support target for electric cargo vehicles, which have a significant environmental impact, will be doubled (from 13,000 to 25,000 vehicles)."

Deputy Prime Minister Hong explained, "Considering the rapid restructuring of the global automobile market around electric and hydrogen vehicles, it is urgent to expand and reform the domestic market's purchase support system, so we have prepared improvement measures."

He continued, "When calculating subsidies, the weight of the electric efficiency (efficiency per unit of electricity) will be raised from 50% to 60%, and local subsidies will be shifted from uniform payments to differentiated payments based on vehicle performance."

He also emphasized, "Subsidy support criteria will be differentiated by price range from 0 to 100% to induce vehicle price reductions and foster affordable models, and to support small and medium-sized enterprises and small business owners, the subsidy for ultra-small electric cargo vehicles will be increased from the existing 5.12 million won to 6 million won."

Furthermore, he added, "The subsidy unit price for electric taxis will also be expanded up to 10 million won, a subsidy for hydrogen trucks will be newly established, and a fuel subsidy for hydrogen buses will be introduced to accelerate the transition to zero-emission commercial vehicles."

During the meeting, support measures for creating infrastructure for fabless growth were also discussed. Deputy Prime Minister Hong stated, "In the fabless sector, which is smaller in scale and less competitive compared to foundries, we will expand four major infrastructures: design software, semiconductor IP, prototype production, and design space, providing more utilization opportunities for small and venture companies," and added, "In the bioindustry, we will establish a system that allows medical institutions to frequently access excellent domestic medical devices to lay the foundation for market revitalization."

He also mentioned, "We will expand support for high-priced semiconductor design software to cover the entire Pangyo area, where 70-80% of domestic fabless companies are concentrated," and "We will explore ways to strengthen domestic IP capabilities, including establishing a global IP utilization program."

Deputy Prime Minister Hong also spoke about the '2021 Key Promotion Plan for BIG3 Sector Ventures and Startups,' saying, "To support ventures and startups in the BIG3 sectors, we will additionally create a venture fund worth 500 billion won," and "We will also promote establishing a 'Korean-style RepCentral,' a specialized support institution for bio startups."

He concluded, "To leap into a leading economy, it is essential to industrialize the BIG3 industries as core industries," emphasizing, "We will focus all policy capabilities on actively fostering them with the strategy of 'speed survival,' meaning only those who adapt quickly survive."

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