Korean govt to cut EV subsidies next year
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![]() The South Korean government will reduce subsidies for electric vehicles by 1 million won $756 per vehicle starting next year. The government has allocated a reduced budget based on its assessment that EV distribution has reached a certain level. However, the budget for EV charging stations will be increased. According to the Ministry of Environment on Wednesday, subsidies for electric passenger cars next year will decrease to 4 million won per vehicle from the current 5 million won, resulting in a reduction of 1 million won. Support for electric cargo trucks will also decrease from 12 million won to 11 million won. It is expected that subsidies from local governments will also decrease following the central government’s announcement of support for those local bodies. Government subsidies have played a pivotal role in expanding the EV market up until now, but manufacturers’ marketing strategies are expected to matter more from now on. The competition to sell vehicles before the subsidy cuts by the end of the year is also heating up. The industry plans to increase the lineup of affordable EVs equipped with relatively inexpensive lithium iron phosphate LFP batteries. “The recent release of affordable EVs using Chinese-made LFP batteries has seemingly led to a reduction in government subsidies. Price competition in the market is likely to intensify next year,” said Park Chul-wan, a professor at Seojeong University. ▶ 한국오는 외국인 월 100만 돌파 얼마만…2위 일본·1위는 ‘이 나라’ ▶ 차·빵도 좋지만 건물 분위기가 최고…건축미 돋보이는 대형카페 2곳 ▶ ‘순살사태’ 건설사 휘청하는데…버핏이 1조 사들인 이 기업은 훨훨 ▶ 91m 절벽서 “쾅”…사람살린 현대차 아반떼, 지옥점령한 경주마 [최기성의 허브車] ▶ LG 이어 삼성도…“건조기로 옮길 필요없다” 신상 세탁기 경쟁 |
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