Busan City Expands Electric Vehicle Distribution Project ... Responding to Fine Dust

2023 First Half Electric Vehicle Purchase Subsidy Support Program

[Asia Economy Yeongnam Reporting Headquarters Reporter Dong-guk Lee] Busan City is promoting the ‘2023 Electric Vehicle Purchase Subsidy Support Project’ to reduce high-concentration fine dust and create a pleasant air environment.

In the first half of this year, ▲the budget for the electric vehicle purchase subsidy project is 87.2 billion KRW, supporting the purchase of ▲7,076 electric vehicles (5,429 passenger cars, 1,517 cargo vehicles, and 130 buses).

This is a significant increase compared to the 5,969 vehicles supported in the first half of last year.

In particular, the number of passenger cars increased to 5,429 from 4,850 supported last year, and cargo vehicles expanded from 998 to 1,517.

It is expected to contribute to the spread of livelihood vehicles in urban areas such as delivery and courier vehicles.

Through this support project, up to 9.8 million KRW per passenger car and up to 16 million KRW per cargo vehicle will be provided. Citizens aged 18 or older with a Busan address at least three months prior to the purchase application date, as well as corporations, public institutions, and local public enterprises, can apply.

For electric passenger cars, subsidies are provided differentially according to the recommended retail price. Vehicles priced under 57 million KRW receive the full subsidy of up to 9.8 million KRW, those under 85 million KRW receive up to 50% of the subsidy, and vehicles priced above 85 million KRW are not eligible for subsidies.

Priority allocation of at least 10% of the supply will be given to vulnerable groups (persons with disabilities, low-income groups, war veterans, small business owners, etc.), families with multiple children, first-time vehicle buyers, and those purchasing vehicles with significant fine dust reduction effects (such as taxis, transport business vehicles, or replacing old diesel vehicles with electric vehicles).

Additionally, electric taxis receive an extra 2 million KRW, and low-income groups purchasing electric passenger cars receive an additional 10% of the national subsidy.

However, depending on the vehicle price at purchase, recipients may lose eligibility for basic pension, disability pension, rental housing, and other benefits, so careful consideration is advised when applying for support.

Subsidy applications are made by manufacturers and dealerships through the ‘Ministry of Environment Low Emission Vehicle Purchase Subsidy Support System’ after the buyer purchases the electric vehicle.

A city official stated, “The biggest difference between this year’s and last year’s projects is the change in the electric vehicle repurchase restriction period. For passenger cars, it remains two years as last year, but for cargo vehicles, it has changed from two years to five years, allowing only one vehicle purchase within five years (including corporations). Corporations wishing to purchase two or more vehicles must apply through the Korea Environment Corporation.”

Lee Geun-hee, Director of the City’s Environmental Policy Office, said, “The expansion of this year’s support project will increase the subsidy supply for general buyers excluding corporations by more than 20%. We expect this to greatly contribute to the expansion of electric vehicle distribution to respond to fine dust.”

Busan City Hall,

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