Introducing government support for buying an environmentally friendly electric vehicle. Let’s take a look at the scope of the subsidy and additional conditions of support for electric passenger cars, electric buses, and electric freight vehicles. You can find more information in our easy-to-find living law information, but here’s a quick breakdown.
Electric vehicle subsidies
Subsidies for electric vehicles are as follows
- A base price for the vehicle is applied based on the finalized subsidy (national + local), and the base price will be maintained until 2023.
- Less than $5.7M: Full subsidy
- Between $5.7 million and $8.5 million: 50% of the grant
- 85K+: Unsubsidized
- For vehicles with a base price of less than KRW 5.7 million in the previous year, an additional 30% of the price reduction (up to KRW 500,000) is available.
- However, the subsidy cannot exceed 6.8 million won for medium and large businesses and 5.8 million won for small businesses.
- Local governments are required to calculate local subsidies on a sliding scale based on the level of national subsidy calculation for each vehicle type.
- For purchases in the lower tier, an additional 10% of the eligible vehicle funding is available.
- An additional 2 million won in government funding will be provided for the purchase of electric taxis.
Electric Bus Grants
Subsidies for the purchase of electric buses are listed below.
- You can get a sliding scale of up to $5,000 for medium and up to $7,000 for large.
- If you purchase a vehicle for children’s transportation, you will receive an additional 500 million won in government subsidies.
- An additional 30% of the eligible vehicle subsidy is available for purchases by small businesses and those in the next lowest income bracket.
Electric Freight Vehicle Subsidies
Subsidies for the purchase of electric freight vehicles are listed below.
- You can receive a sliding scale of up to $12,000.
- Light-duty electric cargo vehicles can receive a flat subsidy of 9 million won and ultra-compact electric cargo vehicles can receive a flat subsidy of 5.5 million won.
- An additional 30% of the eligible vehicle subsidy is available for purchases by small businesses and those in the next lowest income bracket.
You can find more details about the EV subsidy and the different levels of support for different types of vehicles in this easy-to-useresource. We hope this helps you if you’re considering an electric vehicle for a better environment and energy savings.
常見問題
Q1. How is the base price of the EV subsidy determined?
A1. The subsidy is applied to the base price of the vehicle based on the finalized subsidy (national + local). The base price will remain in place until 2023.
Q2. Will there be additional support for reduced-price electric vehicles?
A2. Yes, if your vehicle has a base price of less than $57,000 in the previous year, you’re eligible for an additional 30% of the price reduction.
Q3. What are the incentives for small businesses or the next lowest income group to purchase an electric bus?
A3. If a small business or low-income group purchases an electric bus, they can receive an additional 30% of the subsidized cost of the vehicle.
Q4. How is the subsidy for electric freight vehicles calculated?
A4. Subsidies for electric freight vehicles are available on a sliding scale up to 12 million won. Light-duty electric cargo vehicles are eligible for a flat subsidy of 9 million won and ultra-compact electric cargo vehicles are eligible for a flat subsidy of 5.5 million won.
Q5. Is there any additional support for purchasing an electric taxi?
A5. Yes, if you purchase an electric taxi, you will receive an additional 2 million won in government funding.
| 分类 | Contents | |
| Electric Vehicles | Commonalities | – Based on the finalized subsidy (national + local), vehicles with a base price of less than 5.7 million won will receive full subsidy, vehicles with a base price of more than 5.7 million won to less than 8.5 million won will receive 50% of the subsidy, and vehicles with a base price of more than 8.5 million won will receive no subsidy. This base price will remain in place until 2023 – Additional support of 30% of the price reduction (up to 500,000 won) if the price of a vehicle with a base price of less than 5.7 million won is reduced from the previous year, but the final subsidy cannot exceed 6.8 million won for medium and large-sized vehicles and 5.8 million won for small-sized vehicles. – Local governments must calculate local subsidies for each vehicle type in proportion to the level of national subsidy calculation for each vehicle type. |
| Medium, large, small | – In consideration of vehicle performance (fuel efficiency, mileage), achievement of low-emission vehicle supply targets, and price reduction, differential support is provided within the range of up to 6.8 million won for medium and large-sized vehicles and up to 5.8 million won for small-sized vehicles, and the detailed subsidy calculation method is as shown in Table 1 of the 「2023Electric Vehicle Supply Project Subsidy Business Handling Guidelines」. – Additional 10% of the vehicle’s subsidy for purchases by those in the lowest quintile – Electric taxis will receive an additional 2 million won in subsidies for the vehicle. – If a corporation wants to purchase two or more electric vehicles within two years, the ‘re-subsidy restriction period’ will not be applied, but only government funds will be supported through private subsidy projects. | |
| Tiny | – Fixed support of 3.5 million won regardless of vehicle type, but additional support of 500,000 won from the government if the buyer proves that the purchase is part of a regional-based project to expand the use of small electric vehicles (for business use in the city center, short-distance transportation, etc. – An additional 20% of the eligible vehicle’s subsidized price for purchases made by those in the lowest quintile. – No ‘reapplication restriction period’ for purchases made by legal entities | |
| Electric vans | – Considering the performance of the car (fuel efficiency, mileage) and the size of the vehicle, it is differentially supported within the range of medium-sized up to 5,000 million won and large up to 7,000 million won, and the subsidy calculation method is the same asTable2 of the 「2023Electric Vehicle Supply Project Subsidy Business Processing Guidelines – Additional 500 million won government subsidy for purchases for children’s school transportation | |
| Electric freight vehicles | Commonalities | Small businesses and those in the next lowest income bracket will receive an additional 30% of their vehicle subsidy. |
| Small | – In consideration of vehicle performance (fuel efficiency, mileage, etc.), differential support is provided within a range of up to 12 million won, and the detailed subsidy calculation method is as shown in Table 3 of the 「2023Electric Vehicle Supply Project Subsidy Business Processing Guidelines」. – If a corporation wants to purchase 2 or more electric vehicles within 5 years, the ‘re-subsidy restriction period’ does not apply, but only government funds are supported through private subsidy projects. | |
| Mild to extra small | – Flat rate support of 9 million won for light-duty electric cargo vehicles and 5.5 million won for ultra-compact electric cargo vehicles, regardless of vehicle type. – However, if an ultra-compact electric cargo vehicle is purchased for the purpose of promoting a regional-based business to expand the use of such vehicles (for business in the city center, short-distance transportation, etc.), additional support of KRW 500,000 will be provided – ‘Re-support restriction period’ does not apply if purchased by a corporation | |
