Subsidies

South Korea’s government offers purchase subsidies to encourage people to switch to zero-emission vehicles such as electric vehicles (EVs) and hydrogen fuel cell EVs (FCEVs).

The government has decided to continue providing purchase subsidies until the end of 2025.

In addition to fiscal benefits, the central government and several local governments provide non-fiscal incentives, including exemption from the permanent environment improvement charge under the Permanent Environment Improvement Charge Law, special parking privileges, exemption from congestion fees, reduced public parking fees and lower electricity prices.

To further reduce the price of EVs, the government is contemplating launching a “battery-less” project where EV buyers can purchase EVs without paying for batteries. I