South Korea has established plans to develop the green car sector to achieve its carbon-neutrality goals by 2050. Last year, South Korea announced its aim of becoming carbon neutral as an active response to growing climate emergencies. According to the Ministry of Trade, Industry, and Energy (MOTIE), South Korea produced the most hydrogen-powered cars last year. Aside from being the fourth-largest electric vehicle (EV) exporter throughout the world, Korea also had the most hydrogen-powered vehicles on the road.
Following the 2050 carbon-neutrality goal, government agencies, automobile companies, and battery suppliers combine efforts to lower electric vehicles’ costs by over KRW 10 million (USD 9,000) by 2025. In addition to lowering EV prices, the government plans to phase out internal combustion engine vehicles gradually.
The government encourages the public to acquire electric, hydrogen-powered, or hybrids for their new vehicle purchases. If a customer purchases an EV, they can receive a subsidy of up to USD 17,000 from the government. The central and local governments would also give public vehicle companies incentives to replace their existing units with green cars.
Through close cooperation with other industries, the government aims to commercialize 7.8 million eco-friendly vehicles by 2025 and to cut greenhouse gas emissions from automobiles by 24% by 2030. The government’s outline also targets to construct more EV chargers and increase the number to over 500,000 by 2025. Besides promoting EV platforms, South Korea would invest in battery and fuel cell material research and development. This month, Prime Minister Chung Sye-Kyun attended a meeting with various automakers and battery manufacturers to establish a battery-leasing system.
Partnership with Various Companies
“It will be an opportunity for Korea to leap forward as a leader in the automobile industry in the midst of rapid changes,” said Prime Minister Chung. “Let’s strengthen our capabilities and adapt to changes through solidarity and cooperation between the government and companies.”
In the battery-leasing system, electric taxis and customers would benefit from the optimized battery usage and lowered EV prices. Prime Minister Chung also stated the government’s plan would help accelerate Korea’s transition to eco-friendly vehicles. Additionally, the outline would advance EV-related innovations, helping Korean automobile companies secure their places in international markets.
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