Seoul City to Add 11,779 Electric Vehicles This Year... Purchase Subsidy Applications Start in March

Cumulative Supply Expected to Surpass 40,000 Units...Differentiated Subsidies by Vehicle Price, High-End Vehicles Excluded
100% Electric and Hydrogen Vehicle Purchase in Public Passenger Sector, 1.5 to 2 Times Expansion of Everyday Two-Wheelers and Cargo Vehicles

[Asia Economy Reporter Lim Cheol-young] The Seoul Metropolitan Government announced on the 17th that it will distribute 11,779 eco-friendly electric vehicles this year. This is the largest annual supply volume since the city began distributing electric vehicles, accounting for nearly 40% of the cumulative supply of 31,029 vehicles over the past 12 years from 2009 to 2020.

Seoul is investing 141.9 billion KRW for this purpose. According to the city, with an additional 11,779 electric vehicles this year, the total number will surpass 40,000. Starting this year, 100% of newly purchased public vehicles for city, district, and city-affiliated institutions will be eco-friendly vehicles, with 295 vehicles to be supplied this year.

Due to increased deliveries amid COVID-19, the demand for two-wheelers and cargo vehicles is also expanding, with supply volumes approximately doubling and increasing by 1.5 times respectively compared to the previous year. In particular, as part of support measures for small and medium-sized enterprises (SMEs) struggling due to COVID-19, more than 10% of the electric cargo vehicle supply will be allocated to vehicles produced by SMEs.

This year's supply of 11,779 vehicles is divided as follows: ? Private sector (individuals, corporations, institutions) 11,073 vehicles ? Public transportation sector (buses, taxis, etc.) 411 vehicles ? Public sector (city and autonomous districts) 295 vehicles. By vehicle type: ? Passenger cars 5,231 vehicles ? Cargo vehicles 2,105 vehicles ? Two-wheelers 4,020 vehicles ? Taxis 300 vehicles ? Buses 123 vehicles.

For private electric passenger cars, subsidies will be provided differentially based on vehicle price. High-priced vehicles over 90 million KRW are excluded from subsidy eligibility, while vehicles under 60 million KRW will receive the maximum subsidy to ensure that benefits are effectively delivered to citizens who need support. Applications for subsidies will begin on the 23rd via the Ministry of Environment’s Low Emission Vehicle Integrated Website. However, applications for electric two-wheelers will start from March 23.

Specifically, vehicles priced under 60 million KRW will receive full subsidies (up to 12 million KRW from national and city funds), vehicles priced between 60 million and 90 million KRW will receive 50% of the subsidy, and vehicles over 90 million KRW are excluded from subsidy support. Additionally, 40% of the supply volume will be separately allocated to support voluntary zero-emission vehicle transitions by private corporations and institutions, according to Ministry of Environment guidelines.

For electric cargo vehicles, to prevent monopolization by some corporations and expand purchasing opportunities for individuals, corporate purchases are limited to a total of 10 vehicles. Furthermore, for electric two-wheelers and large electric buses, the buyer’s self-payment rate is increased to prevent subsidy fraud such as hoarding and side contracts. Electric two-wheelers require buyers to pay 40-50% of the subsidy amount, and large electric buses require a minimum self-payment of 100 million KRW of the vehicle price.

Starting this year, Seoul city-affiliated institutions are required to purchase or lease electric or hydrogen vehicles when acquiring new passenger vehicles for official use. The city amended its ordinance last year to expand the mandatory eco-friendly vehicle purchase requirement to public institutions with fewer than five vehicles when purchasing new vehicles.

In addition, Seoul has prepared various additional support measures to improve air quality, such as providing an extra 700,000 KRW subsidy when purchasing an electric vehicle after scrapping a vehicle classified as emission grade 5.

Purchase subsidies vary by vehicle type based on vehicle performance (fuel efficiency, driving range) and air quality improvement effects. Subsidies are paid by Seoul to vehicle manufacturers and importers, so buyers only need to pay the remaining amount after deducting the subsidy from the vehicle purchase price.

Meanwhile, due to Seoul’s expanded electric vehicle distribution policy and strong public interest, the cumulative registered electric vehicles as of the end of 2020 increased sharply by 56.5% compared to the previous year. In contrast, diesel vehicles decreased by 1.2% and LPG vehicles by 5%. For real-time information on public electric vehicle charging stations and operational status nationwide, refer to the Low Emission Vehicle Integrated Website.

Um Eui-sik, Director of Environmental Energy Planning at Seoul City, said, “The transportation sector accounts for 37% of ultrafine dust emissions and 19% of greenhouse gas emissions in the Seoul area. Therefore, the policy to expand electric vehicle distribution is very important to reduce fine dust emissions.” He added, “Electric vehicles do not emit pollutants while driving, so they are excellent for improving air quality and reducing greenhouse gases. We hope citizens will show great interest in the distribution of eco-friendly vehicles.”

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