For the large sums spent, young people in Korea who buy their first electric car in 2025 will receive an additional 20% discount. Families with 2 children will be eligible for a 1 million won discount. Families with 3 or 4 children will receive discounts of 2-3 million won, respectively.
In addition to the discount, electric vehicle users will also receive reduced tolls until the end of 2027. The Korean government also ensures that at least 10% of vehicles used at driving test centers will be electric by the end of 2025.
South Korea will spend 375.8 billion won (6,535 billion VND) in 2025 to install 4,400 fast-charging stations nationwide and develop policies to encourage supermarket chains and cinemas to install optimized chargers for customers.
The move is aimed at boosting domestic demand for electric vehicles amid falling sales due to safety concerns and a lack of charging stations, according to the Ministry of Trade, Industry and Energy (MOTIE).
However, some consumers here still expressed concerns about the safety of electric vehicles after a major fire caused by a Mercedes EQE in August 2024, which damaged 140 vehicles and destroyed an underground parking lot in Incheon (South Korea).
In South Korea, the number of electric vehicles and hydrogen fuel cell vehicles is expected to reach 720,000 by the end of 2024, with electric vehicles accounting for 680,000. However, domestic electric vehicle sales will fall 9.7% from 2023 to 147,000 units, marking a decline for two consecutive years.
