Government Allocates 4 Trillion Won in Electric Vehicle Subsidies Over 10 Years... Charging Facilities Severely Insufficient

[Image source=AP Yonhap News]

[Sejong=Asia Economy Reporter Kwon Haeyoung] Although the government has invested nearly 4 trillion won in electric vehicle (EV) subsidy budgets over the past decade, the installation rate of fast chargers has fallen to less than half of the actual target. Experts point out that to expand EV adoption, it is necessary not only to provide subsidies but also to accelerate the expansion of charging infrastructure.

According to analysis data received by Rep. Gu Ja-geun of the People Power Party from the National Assembly Budget Office on the 3rd, the total budget invested since the government began supporting EV-related budgets in 2011 amounts to 3.7933 trillion won. Of this, 3.1244 trillion won was allocated for vehicle purchase subsidies, and 668.9 billion won was allocated for supporting the installation of charging stations and chargers.

By year, purchase subsidies increased more than 100 times from 9.8 billion won in 2011 to 1.023 trillion won this year. The budget for supporting charging station and charger installation rose from 7 billion won in 2011 to 165 billion won in 2019, then decreased to 85.4 billion won last year. The volume of subsidies supported was identified as 210,000 vehicles and 76,000 charging stations and chargers over six years from 2015 to 2020.

The combined purchase subsidy rate, including national funds, local government funds, and tax reductions for EV support, is estimated at 47%. This far exceeds the subsidy rates of major countries such as China, Japan, the United Kingdom, and Germany, which range from 15% to 17%.

The Budget Office explained, "Since the initial market creation goal through purchase subsidies has been somewhat achieved and considering overseas cases where subsidies for high-priced EVs are gradually reduced or abolished, there are calls to adjust the purchase subsidy rate."

According to the Budget Office data, the government planned to install a total of 11,384 fast chargers from 2017 to the present, but the actual installation scale during this period was only 5,091 units, which is 44.7% of the original plan.

Rep. Gu said, "To promote EV adoption, in addition to providing subsidies, it is necessary to expand charging infrastructure and support the semiconductor industry to stabilize vehicle supply," adding, "Policies to support various research and infrastructure expansion should be pursued so that EV production technology can gain competitiveness."

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