Anjali Sharma
GG News Bureau
NEW YORK, 1st April. South Korean government on Sunday announced that it considering further cutting electric vehicle subsidies next year to instead use the funds to supplement insufficient charging infrastructure, sources said on Sunday.
According to the sources, government ministries overseeing EV subsidy policy, including the finance and environment ministries, are discussing ways to reduce EV subsidies for next year based on state budget guidelines for 2025.
The finance ministry has stressed the need to strengthen the efficiency of subsidies for EVs while strengthening the supply of charging infrastructure, news media stated.
“The direction of subsidy policy has been about increasing the number of recipients while reducing the volume of individual support,” a finance ministry official said.
“By reducing the unit price, funds will be saved to be used for expanding charging infrastructure, which is still considered a weak point.
The government has reduced the budget for the promotion of zero-emission vehicles from 2.56 trillion won ($1.89 billion) in 2023 to 2.31 trillion won this year, the official quoted in media.
The environment ministry announced the revision to the electric vehicle purchase subsidy plan, reducing the unit subsidy for EVs from the previous maximum of 5 million won to 4 million won.
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