The South Korean government decided to continue its support for environmental-friendly vehicles. The subsidy budget for electric and hydrogen vehicles has increased by 32% year-on-year to KRW 1.4 trillion (US$1.3 billion) The decision was made in a meeting attended by the Deputy Prime Minister Hong Nam-ki on 8th January 2021.
This year, the government decided to offer price incentives to 136,000 electric and hydrogen vehicles, up by 23.6%, from 110,000 units the previous year. Support for electric trucks to double this year, reaching 25,000 units from 13,000 units last year.
To support the sales of low end electric and hydrogen cars, subsidies are offered only to vehicles up to KRW 90 million (US$ 81,900). Electric and hydrogen vehicles under KRW 60 million (US$ 54,600) are subsidised 100%, while those fall between KRW 60 million (US$ 54,600) and KRW 90 million (US$ 81,900) are 50% subsided.
The government will also introduce a pilot project to offer price subsidy for hydrogen trucks up to KRW 200 million (US$ 182,000) and a fuel subsidy for hydrogen buses. A legislation work is planned for next month to work out fuel subsidies for hydrogen-powered commercial vehicles.