Public Institutions Must Purchase Only 'Electric, Hydrogen, and Hybrid Vehicles' from Now On

Amendment to the Enforcement Decree of the 'Eco-Friendly Vehicle Act' Approved at the Cabinet Meeting

Mandatory Purchase Ratio of Eco-Friendly Vehicles for Public Institutions Raised from 70% to 100%
Fine of 100,000 KRW for Occupying Electric Vehicle Slow Chargers Over 14 Hours

[Sejong=Asia Economy Reporter Joo Sang-don] Public institutions must purchase 100% of their planned vehicle acquisitions this year and onward as eco-friendly vehicles such as electric, hydrogen, or hybrid cars. Additionally, when charging an electric vehicle at a slow charger, the vehicle must be moved within 14 hours. Violations will incur a fine of 100,000 KRW.

The Ministry of Trade, Industry and Energy announced on the 27th that it approved the amendment to the Enforcement Decree of the Act on the Development and Promotion of Environmentally Friendly Automobiles at the Cabinet meeting.

To promote the transition to the eco-friendly vehicle industry, the government announced policies for the distribution and expansion of eco-friendly vehicles, including the Korean New Deal in July last year and the "Future Vehicle Expansion and Market Preemption Strategy" in October of the same year. This amendment aims to create leading demand for eco-friendly vehicles and improve charging convenience for electric vehicle users.

The mandatory purchase system for eco-friendly vehicles by public institutions requires that public institutions purchase a certain percentage or more of eco-friendly vehicles when buying or leasing new vehicles. It was first introduced in 2016 with a mandatory purchase ratio of 50%, which was raised to 70% in 2018.

With this amendment, the mandatory purchase ratio for eco-friendly vehicles has been expanded to 100%. The effective date is "immediately after promulgation," meaning public institutions must purchase or lease 100% eco-friendly vehicles for all planned vehicle acquisitions this year. For example, if 50 out of 100 vehicles planned for purchase this year have already been acquired, the remaining 50 must all be eco-friendly vehicles. In particular, official vehicles for heads of public institutions must be prioritized for purchase as electric or hydrogen vehicles.

The amendment also includes measures to alleviate inconveniences in electric vehicle charging. Until now, rapid chargers could impose fines for parking electric vehicles for more than 2 hours. However, slow chargers, which accounted for 85% (54,383 units) of all chargers as of last year, had no grounds to penalize long-term parking after charging was completed.

Accordingly, the amendment allows imposing a fine of 100,000 KRW for electric vehicles parked at slow chargers for more than 14 hours (including charging time), similar to rapid chargers. Considering that the typical full charge time for slow chargers is about 10 hours, vehicles must be moved within 4 hours after charging is complete.

Enforcement locations include multi-use facilities, public facilities, and residential areas. However, single-family homes and multi-unit dwellings such as row houses and multiplexes are being considered for exclusion from enforcement due to parking conditions. Enforcement of long-term occupancy at slow chargers will be implemented starting three months after promulgation to establish delegated matters such as enforcement scope (residential areas) through public notice.

An official from the Ministry of Trade, Industry and Energy stated, "To accelerate the transition to eco-friendly vehicles, large-scale demand creation and improved charging convenience are paramount. Starting with this amendment, we will also pursue revisions to the Eco-Friendly Vehicle Act to introduce purchase targets for large-scale demand sectors such as rental cars and corporate vehicles of large companies, and raise the mandatory installation ratio of electric vehicle chargers from 0.5% to 5%, continuously building an eco-friendly vehicle-friendly social system."

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