Global EV Outlook 2019 |
2. Prospects for electric mobility development |
Korea
The key policy updates that are expected to drive the transition to electric mobility in Korea are summarised in Table 2.9.
Table 2.9. Overview of EV and EVSE policies in Korea, 2018/19
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Policy type |
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Regulations |
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(vehicles) |
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Incentives |
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Korea |
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(vehicles) |
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Targets (vehicles) |
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Industrial policy |
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Incentives |
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(chargers) |
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Targets |
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(chargers) |
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Description
Fuel economy standards for LDVs in 2020.
Subsidies and rebates on purchase taxes, reduced highway toll fees and public parking fees.
Stock of 430 000 BEVs by 2022.
Target to increase electric car production ten-fold by 2022, industries benefit of liquidity and loan support.
Available for both public and private chargers.
10 000 fast EV chargers by 2022.
Vehicle policies
Korea aims to have 430 000 BEVs and 67 000 FCEVs on the road by 2022 (Government of Korea, 2019a; Manthey, 2018). In 2019, the objective is to register 46 000 passenger cars and more than 1 300 heavy-duty BEVs, and initiate hydrogen-fuelled public buses in seven major cities, including Seoul and Busan (Government of Korea, 2019b).
Korea supports the increased uptake of EVs with a number of measures, including subsides and rebates on national and local vehicle purchase taxes, reduced highway toll fees and public parking fees.23 It also gives priority to low-emissions vehicles in public procurement programmes.
Tax rebates per EV (including BEVs and FCEVs) are capped at a maximum of KRW 5.3 million (Korean won, USD 4 500) (Korea Environment Corporation, 2019). The number of low-carbon vehicle that can benefit from from national subsidies (available on the top of the tax rebates) increased from 32 000 vehicles in 2018 to 57 000 in 2019 (Government of Korea, 2019a). BEV subsidies per vehicle are capped at a maximum of KRW 19 million (USD 16 400, up from KRW 14 million [USD 12 000] in 2018) and PHEVs at KRW 5 million (USD 4 300) (Government of Korea, 2019a).24
23In Seoul, EVs are exempt from parking fees for the first hour used for charging and can benefit from 50% discount for additional hours (Korean Environment Corporation, 2016).
24By comparison, the FCEV subsidy cap is KRW 36 million (USD 31 000). Despite the increased cap, the amount of EV subsidy from the government (per vehicle) has declined from KRW 12 million (USD 10 million) to KRW 9 million (USD 7.7 million) (Government of Korea, 2019a). Subsidies for an additional purchase of a vehicle within two years of the first purchase are not allowed. Institutions buying a large number of vehicles for research purposes will also not be eligible for subsidies (Government of Korea, 2019a).
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