[Electric Vehicles, Now It's About Infrastructure ①] Over 1 Million EVs Sold: The Winner-Takes-All Era for Infrastructure Has Begun

The leading electric vehicle fast charging infrastructure operator (CPO), Chaebi's concentrated charging station. Provided by Chaebi

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The number of electric vehicles sold in Korea has surpassed 1 million, signaling the start of a structural transformation in the mobility ecosystem. The increase in electric vehicles directly translates to a structural rise in charging demand. In particular, as the adoption rate of electric vehicles accelerates rapidly, the role of rapid charging infrastructure is quickly becoming more prominent.

The era of 1 million electric vehicles has begun. According to the Korea Automobile & Mobility Association (KAMA) and the Korea Automobile Importers & Distributors Association (KAIDA), cumulative electric vehicle sales have reached 1,020,859 units, marking a significant inflection point. Last month, 41,204 electric vehicles were sold, surpassing 40,000 in monthly sales for the first time ever. Following the previous record set in February (36,332 units), this milestone demonstrates that the market growth is accelerating.

Cumulative sales in the first quarter (January to March) stood at 87,627 units, an increase of about 2.5 times compared to the same period last year. The electric vehicle penetration rate surpassed 10% (12.9%) for the first time in 2025, and in the first quarter of this year, it jumped to 21.5%, exceeding the 20% threshold for the first time. Now, one out of every five new cars sold is an electric vehicle.

The market share of electric vehicles is also expanding rapidly. The share of electric vehicles within Korea's total automobile sales stands at 3.7%, exceeding the global average and ranking high among leading electric vehicle countries such as China and Norway.

Furthermore, for two consecutive months (February and March), electric vehicle sales have outpaced hybrids, further strengthening their presence in the market. In the imported car market in March, electric vehicles accounted for 16,249 units (47.8%), surpassing hybrids (14,585 units, 42.9%). In the domestic market, electric vehicle sales were 24,955 units (19.1%), showcasing overwhelming dominance.

This trend is also reflected in the performance of major brands. Tesla ranked first in imported car sales in the first quarter of this year, recording 20,964 units-a 335.1% increase compared to the same period last year. Notably, in March, Tesla sold 11,130 units, becoming the first imported car brand to surpass 10,000 monthly sales, breaking Mercedes-Benz's previous record (9,546 units in December 2020).

Surpassing the cumulative sales milestone of 1 million units is more than just a number. Within the electric vehicle ecosystem, 1 million is considered a critical threshold. It marks the point when the number of charging station users increases, the ecosystem for charging-related services deepens, and consumers start to perceive electric vehicles as an 'everyday choice' rather than a 'special selection.' The entire electric vehicle ecosystem has moved from the 'early adoption phase' to the 'full-scale expansion phase.'

Price reductions and competitive promotions by automakers are quickly boosting consumer purchasing sentiment. The diversification of electric vehicle lineups by Hyundai and Kia, combined with aggressive price cuts from imported electric vehicle brands such as Tesla and BYD, have broadened consumers' choices.

Notably, the Ioniq 9 outperformed internal combustion vehicles to win three 'Car of the Year' awards, demonstrating that electric vehicles have reached a level that surpasses internal combustion engines in terms of performance. Advances in battery technology have extended driving ranges on a single charge, and vehicle prices are approaching those of internal combustion vehicles, gradually eliminating key barriers that previously discouraged electric vehicle purchases.

On the policy side, support is also being strengthened. The government is maintaining subsidies for electric vehicles while introducing a new transition support fund of up to 1.3 million won for consumers switching from internal combustion vehicles to electric vehicles, and is considering tax credits for domestic electric vehicle sales. As the 300,000-unit subsidy budget allocated by the Ministry of Climate, Energy and Environment is being depleted faster than expected, the government has introduced a 'national fund first support and post-settlement method' to address potential gaps in subsidy payments.

As a result, even after local government subsidies are exhausted, buyers who have contracted to purchase an electric vehicle can receive the full subsidy amount-including both national and local portions-upfront from the national fund, with any excess national funds later settled with the local government. In addition, electric vehicles have been exempted from enhanced vehicle restrictions for public institutions in response to the raised resource security crisis alert.

Under the amended Clean Air Conservation Act, which took effect on January 5, automobile manufacturers are now required to meet annual zero-emission vehicle distribution targets. If these targets are not met, they must pay a 'low emission vehicle distribution contribution.' Previously, selling one gasoline vehicle was credited as 0.6 electric vehicles, which meant the contribution was rarely actually imposed. However, starting this year, the achievement calculation ratio for internal combustion vehicles has been set to '0,' making the regulation an immediate and substantive enforcement tool. If targets are missed by 20%, the contribution could reach approximately 510 billion won by 2030. The industry sees this as a de facto structural penalty system for internal combustion vehicle sales.

Moreover, increased volatility in oil prices due to instability in the Middle East is further highlighting the economic advantages of electric vehicles. Whenever concerns arise about blockades of the Strait of Hormuz, international oil prices fluctuate, and this impact is directly reflected at the pump. While fuel costs for internal combustion vehicles are directly tied to global oil prices, electric vehicle charging fees are determined through a distributed structure influenced by various factors such as generation facilities, transmission/distribution, and operational costs. As energy sources diversify to include more renewables and nuclear power, the impact of oil prices becomes even more limited. The more structural repetition there is in oil price volatility, the faster the transition to electric vehicles will become.

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In Korea, 79.6% of the population lives in multi-unit housing. As of January, the grace period for the mandatory installation of slow chargers has ended, and the previous model-which involved reducing parking spaces to increase the number of slow chargers to meet legal requirements-has lost momentum. Meanwhile, the pace of electric vehicle adoption is accelerating. The shift from private to public charging, and from slow to rapid charging, is now inevitable.

Currently, there is just one rapid charger for every 16 electric vehicles, and by 2030, the ratio is expected to deteriorate to one charger per 29 vehicles, indicating an even more severe supply shortage. In fact, the net increase in rapid charging infrastructure in the first quarter of this year was only 100 units-a 95% decrease compared to the approximately 2,000-unit increase in the first quarter of last year. Demand is skyrocketing, but supply has essentially stalled.

The public rapid charging market is not an arena open to just anyone. It requires a combination of capabilities, including large-scale power supply facilities, high-voltage power connections, and securement of land. In addition, operators must demonstrate reliable charging data accumulated over long-term operations and a prompt maintenance system. All of these factors serve as barriers to entry, giving a decisive advantage to early movers. As a result, the market has consolidated into a 'Big 3' structure centered on Chaebi, SK, and Lotte.

Even within the 'Big 3,' the gap between operators is already widening. Chaebi, the market leader in terms of market share, has achieved an operating rate about twice as high as other CPOs in the Seoul area and 1.3 times higher nationwide, further expanding its lead.

An industry insider commented, "As the imbalance between supply and demand intensifies, the utilization rates of existing rapid charging hubs will rise rapidly, and the profitability of operators who have secured key locations will improve sharply. The room for new entrants is shrinking, and the dominance of established operators will become even more entrenched."

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