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Republic of Korea

EV ADOPTION BY YEAR

Major Developments in 2020

World's first hydrogen electric truck

In 2020, Hyundai Motor Company launched the world's first mass-produced hydrogen electric truck, the Exient FCEV. Depending on the outside air temperature, refuelling for 8 to 20 minutes provides a range of 400 km. Hyundai Motor Company also produce hydrogen electric buses (Elec-City FCEV), which have a range of 430 km on a single charge.

New policies

In 2020, the Korean government plans to subsidise 99,950 electric vehicles; 65,000 passenger cars, 13,000 freight cars, 650 buses, 21,000 motorcycles, and 300 PHEVs (Plug-in Hybrid Electric Vehicles). The plan is to subsidise KRW 520 billion for passenger cars, KRW 70 billion for freight cars, KRW 70 billion for buses, KRW 24 billion for motorcycles, and KRW 1.5 billion for PHEVs.

Incentives

In 2020, the Korean government set guidelines for subsidy measures, such as subsidy support standards, to stimulate the creation of an electric vehicle charging infrastructure network. In 2020, the Government stated the number of subsidies for the purchase of electric and hydrogen vehicles was 94,000 units, an increase of 57% from 60,000 units in 2019.

Funding

The Korean government is currently raising the rapid charging tariff rate from KRW 173.8/kWh to KRW 255.7/kWh from July 6. According to the Korean government's 2016 explanation, once the discount is completely removed in 2022 and the usage fee returns to 313.1 per session, the rate for using a fast charger will rise to 44% of the cost of fuelling gasoline cars and 62% of diesel car refuelling.

Research

In 2020, the Hyundai Motor Group first unveiled the electric vehicle chassis, E-GMP. The introduction of E-GMP became the starting point for producing an innovative electric vehicle that supplemented the existing shortcomings in various aspects such as range, charging speeds, indoor space utilisation, design, and safety.

Taxation

According to Article 127 (Tax Base and Tax Rate) of the Local Tax Act, electric vehicles are classified as other passenger vehicles. They are therefore subject to KRW 20,000 taxation for business use and KRW 130,000 taxation for non-business use, including local education tax at 30%. As a benefit of electric vehicle tax, individual consumption tax is KRW 3 million, a 5% reduction limit of the vehicle price, education tax is KRW 900,000, 30% reduction of individual consumption tax, and acquisition tax is KRW 1.4 million (7% of the vehicle price).

Outlook

The Korean government announced that it will build more than 70 units of 350kW-class ultra-fast chargers, that can charge vehicles three times faster than chargers already installed from next year. This will be formed from a public-private partnership and will target major highway rest areas across the country. In addition to the independent slow charger, which has been mainly installed so far, the Korean government is planning to install various slow chargers such as outlet type and street light chargers. The Ministry of SMEs and Startups and the Jeju Special Self-Governing Province are preparing electric vehicle charging infrastructure and advanced electric vehicle performance and condition diagnosis services in the “Jeju Electric Vehicle Charging Service Special Zone”. By incorporating an energy storage device (ESS), with a capacity of 50kW, into the existing 50kW fast charger, it realises 100kW rapid charging. The system will additionally provide a battery performance and condition diagnosis service to pre-emptively respond to the activation of used electric vehicle transactions.