South Korean Government announces $900 million subsidy for electric vehicles
In an evident effort to increase the adoption of electric vehicles (EVs) in South Korea, the government has earmarked an amount equivalent of approximately $900 million for new e-mobility subsidies in 2020.
The e-mobility subsidies to be offered by the South Korea government will not just underscore incentives for the purchase of battery-electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), but also for the deployment of EV charging infrastructure in the country.
Going by specific figures related to the e-mobility subsidies to be offered by the South Korea government in 2020, the amount set aside for subsidies for BEVs and charging infrastructure expansion is 738.2 billion won ($609 million). In addition, the amount set aside for FCEV subsidies and expansion of hydrogen filling stations is 359.3 billion won ($296 million).
The allocated e-mobility subsidy amount, in real terms, implies that the South Korea government will subsidise BEVs with 8 million won (nearly $6,600) in 2020, while the FCEVs will be subsidised with 22.5 million won (nearly $18,600).
The objective behind the state government’s e-mobility subsidy move is to increase the number of BEVs on South Korean roads to 71,000 in 2020, and the number of FCEVs to 10,000. The government had already said in a January 2019 announcement that intends having 80,000 FCEVs in the country by 2022.