While the amount of subsidies for electric vehicles more than doubled this year from last year, the maximum amount of subsidies per unit will decrease slightly. The Ministry of Trade, Industry and Energy, the Ministry of Environment, and the Ministry of Strategy and Finance announced on the 19th that they will announce the 2022 Electric Vehicle Subsidy Guidelines by the 25th to significantly increase the supply of electric vehicles and expand support for high-performance and low-end electric vehicles.
The reform plan was prepared through discussions between related ministries and stakeholders such as vehicle manufacturers and importers in consideration of the need to accelerate the conversion of pollution-free cars (electric and hydrogen vehicles) and the improvement of the air environment. According to the reorganization plan, the supply volume by vehicle type has expanded significantly.
Instead of cutting the maximum subsidy amount for each type of vehicle, it plans to supply 207,500 electric vehicles, more than doubling from 101,000 units a year earlier. The number of applicants increased to 75,000→164,500 for passenger cars, 25,000→41,000 for cargo, and 1000→2000 for total subsidies (based on state expenses), and the maximum amount of subsidies decreased to 8 million→7 million for passenger cars, 16 million→14 million for small cargoes, and 80 million→70 million for large vehicles. In order to accelerate the popularization of electric vehicles, it induces price cuts and provides various benefits (incentives) for companies' active participation in converting pollution-free cars.
In order to foster low-end vehicles (models), the upper limit of subsidies for each section will be cut to 100 percent under 60 million won last year, 50 percent under 60 million won, 100 percent under 90 million won this year, 50 percent under 55 million won to 85 million won. In addition, if low-end vehicles with less than 55 million won cut prices compared to last year, additional subsidies will be provided 30% of the cut and up to 500,000 won. In addition, if the target for pollution-free vehicles is achieved, the maximum scale will be expanded by adding subsidies to subsidies that were applied to corporate vehicles subject to the "low pollution vehicle supply target system." [Source] Korean policy briefing (www.Korea.kr)
