[Inside Chodong] 'Broad and Vague' Future Mobility Pledges

(Photo by Asia Economy)

[Asia Economy Reporter Kiho Sung] With the presidential election just a month away, the future mobility pledges of each candidate are gradually becoming more concrete. Automobiles, especially electric vehicles, are gaining attention as a future growth industry. Cars are closely related to the daily lives of the public, and interest is high as the industry enters a period of transition. However, when looking at the pledges made by the presidential candidates from both ruling and opposition parties, the content is not significantly different. Questions are also raised about their feasibility. The criticism that the pledges are "vague and overly general" stems precisely from this point.

The common pledge among the presidential candidates is the promotion of electric vehicles. The overall framework is the same, with only slight differences in the details.

Lee Jae-myung, the candidate from the Democratic Party of Korea, intends to change the current automobile tax system based on engine displacement to one based on new car price and carbon dioxide emissions standards. The aim is to correct the reversal phenomenon where high-priced vehicles with low-displacement engines pay less tax than popular cars with low displacement, and to promote electric vehicles that emit less carbon dioxide. He also promised to expand electric vehicle subsidies and to promote the gradual transition of public sector vehicles and public transportation such as taxis and buses.

Yoon Seok-youl, the candidate from the People Power Party, focused on charging. He pledged to freeze electric vehicle charging fees for five years and to ease safety regulations to allow the installation of electric vehicle charging facilities at gas stations and liquefied petroleum gas (LPG) stations. This is interpreted as targeting the current government's reduction of discounts on electric vehicle charging fees.

The problem is how realistic these pledges are. Lee’s pledge lacks specific details on securing funding. Also, the expansion of electric vehicle subsidies and the transition of public sector vehicles are not significantly different from the current government's policies. The current government plans to increase the total subsidy amount this year but reduce the amount paid per vehicle. Because of this, criticism has been continuously raised that the actual burden on citizens purchasing electric vehicles may increase. Reforming the automobile tax system also faces issues such as concerns over reduced local tax revenue and the lengthy procedures required to amend provisions of the Korea-US Free Trade Agreement.

Yoon’s pledge also faces questions about its feasibility. Industry insiders point out that expanding charging infrastructure is not solely a matter of deregulation. Although the current government has taken steps to lift related regulations, the number of charging stations has not increased significantly. The reason is simple: it is not profitable. This is why there is criticism about whether pledging expansion without addressing the most important aspects is truly achievable.

Freezing charging fees is also a difficult issue. The cost of electricity production is increasing every year due to rising raw material prices. Without considering the situation of Korea Electric Power Corporation, freezing electric vehicle charging fees could lead to future increases in household electricity rates. This would inevitably cause controversy over reverse discrimination.

It is also regrettable that there are no notable pledges regarding the urgent development of advanced automotive technologies or the cultivation of related talent. There are no pledges requiring a long-term national perspective, such as securing a stable supply chain for raw materials needed for vehicle manufacturing or handling of used batteries. Currently, only short-term, populist pledges such as financial support to win votes or deregulation are being excessively promoted.

It is welcome that major presidential candidates are showing interest in future mobility, which has been neglected until now. It is also well understood that the election is imminent and that parties and candidates are entering a fierce election battle. However, since they have shown interest in future mobility, it is hoped that they will present more realistic and concrete pledges.

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