2024 Electric Vehicle Supply Project Subsidy Business Processing Guidelines

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2025 Guidelines for Processing Subsidies for Electric Vehicle Supply Projects

Approved

<p>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.</p>

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

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An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

This sector involves the wholesale and retail selling of goods.

A subsidy is a direct or indirect payment to individuals or businesses, typically provided as a government cash payment or a specific tax reduction.

Any compulsory, unrequited payment to the government levied on corporations or individuals. This can be for environmental reasons, such as introducing a Carbon tax to set a price that emitters must pay for the greenhouse gases they emit.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Activities of businesses and institutions that provide financial services and products to individuals and organisations.

The activities of industries that transforms raw materials into finished goods through industrial processes.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

Financial support to help individuals manage the effects of unexpected events, securing their livelihoods and increasing the resilience of people and businesses to the changing climate. It’s especially vital in developing regions where everyday risks, climate-related weather extremes, or crop failures can push people into poverty. Without insurance, people may have to resort to selling assets or cutting consumption to cope with losses.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

People whose health, both mental and physical, makes them more vulnerable to the effects of climate change

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector involves activities to move goods and people, alongside the storage of products.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

2024 Electric Vehicle Supply Project Subsidy Business Processing Guidelines

Target

Policy instrument

Impacted group

Fossil fuel

Economic sector

Finance