2025 Guidelines for Processing Subsidies for Electric Vehicle Supply Projects (and 2024 Guidelines)

The 2025 policy expands electric vehicle subsidies for young people and multi-child households. Young individuals purchasing an electric vehicle as their first-ever car will be able to receive an additional 20% of the government subsidy that is normally provided for each vehicle type. For multi-child households, the additional support previously set at 10% of the basic government subsidy has been reformed to a fixed amount (KRW 1 million to 3 million), allowing them to receive more subsidies than before. The 2024 guidelines for electric vehicle purchase subsidies are created to support EV adoption. These guidelines support the Republic of Korea's target of having 4.2 million EVs on the road by 2030. The 2024 EV guidelines provide KRW 1.7 trillion in subsidies, broken down by vehicle category: KRW 932 billion for light-duty passenger vehicles, KRW 140 billion for light- and medium-duty commercial vehicles, and KRW 630 billion for heavy-duty commercial vehicles. These guidelines are determined by factors including battery efficiency, ease of recycling, operations and maintenance availability, and vehicle cost. The guidelines promote the adoption of safe and efficient electric vehicles, use of longer-range vehicles, better technology innovation, manufacturer support for vehicle maintenance, and EV adoption in disadvantaged communities.