Due to Semiconductor Supply Shortage... Electric Vehicle Subsidy Delivery Deadline Extended from 2 to 3 Months

[Sejong=Asia Economy Reporter Joo Sang-don] The Ministry of Environment announced on the 16th that it will extend the delivery deadline condition, which must be met to receive subsidies for electric vehicles, from the existing 2 months to 3 months in response to the recent shortage of automotive semiconductors.

Currently, to receive electric vehicle purchase subsidies, applicants must submit a subsidy application form directly or through a dealership to the local government, be selected as a subsidy recipient, and have the vehicle delivered within 2 months to receive the subsidy.

However, due to recent production delays caused by the shortage of automotive semiconductors, the delivery waiting period has become uncertain. Accordingly, the Ministry of Environment, in consultation with local governments and vehicle manufacturers, decided to extend the delivery deadline condition for electric vehicle purchase subsidies from 2 months to 3 months.

The extension of the delivery deadline applies to electric passenger cars and electric cargo vehicles eligible for subsidies. Buyers who have submitted the subsidy application and been selected as recipients can receive the subsidy if the vehicle is delivered within 3 months. The extension will be applied temporarily until the end of this year.

Electric vehicle purchase subsidies are provided jointly by national and local governments, with this year’s distribution targets set at 75,000 electric passenger cars and 25,000 electric cargo vehicles.

As of the 13th, the number of electric vehicle purchase subsidy announcements nationwide was 47,460 for electric passenger cars and 22,196 for electric cargo vehicles. Among these announced numbers, 16,838 electric passenger cars (35.4%) and 16,494 electric cargo vehicles (74.3%) have been registered for purchase subsidies.

The national budget to support this year’s distribution targets has already been secured. Five local governments, including Daejeon, Gangwon, and Jeju, have also secured local budgets to support their distribution targets.

However, the remaining local governments, including Seoul, plan to secure local budgets to support up to 60,000 electric passenger cars between May and July this year and will announce additional subsidy opportunities.

The Ministry of Environment plans to reflect actual demand as much as possible by converting some electric passenger car allocations to electric cargo vehicle allocations based on manufacturers’ production plans, and reallocating allocations from local governments with low electric passenger car demand to those with higher demand. Additionally, the ministry will continue to consult with local governments on the timing of additional announcements so that electric vehicle buyers in the second half of this year can also receive subsidies.

Kim Seung-hee, Director of Air Quality Policy at the Ministry of Environment, said, "We will alleviate the concerns of electric vehicle buyers worried about not receiving subsidies by extending the delivery deadline and announcing additional subsidy opportunities," adding, "We will actively lead necessary measures for efficient and flexible distribution projects by considering major trends and project progress related to electric vehicles."

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