Reduced Tax Burden When Buying Large Electric Passenger Cars... Lowered Eco-Friendly Certification Standards

Ministry of Trade, Industry and Energy Issues Administrative Notice
for Amendment of Related Regulations

The government has decided to lower the eco-friendly certification standards for large electric passenger cars to reduce the tax benefit threshold for consumers.

The Ministry of Trade, Industry and Energy announced on the 12th that it has recently issued an administrative notice for the revision of the "Regulations on Requirements for Environmentally Friendly Vehicles," which includes this content.

The revision classifies electric passenger cars into medium and large based on a wheelbase of 3050mm, and large electric passenger cars will be recognized as eco-friendly vehicles if they meet an energy consumption efficiency of 3.4 km/kWh.

Vehicles with a wheelbase under 3050mm must have an energy consumption efficiency of 4.2 km/kWh or higher to receive eco-friendly vehicle certification, strengthening the standard.

Currently, electric passenger cars are recognized as eco-friendly electric vehicles if they have an energy consumption efficiency of 3.7 km/kWh or higher, regardless of medium or large size.

Eco-friendly certified vehicles are eligible for a maximum individual consumption tax reduction of 3 million KRW, as well as an education tax reduction equivalent to 30% of the individual consumption tax reduction, and an acquisition tax reduction of up to 1.4 million KRW.

With this regulation revision, the Hyundai Ioniq 9 and Kia EV9, scheduled to be released this year, are expected to benefit from the relaxed eco-friendly certification regulations.

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