Seoul City: "10% of new vehicle registrations to be electric...new 1.3 million won transition subsidy"

[The Financial News] The Seoul Metropolitan Government will promote the supply of a total of 22,526 electric vehicles this year. In particular, the city plans to accelerate the transition to electric vehicles by introducing a new EV transition subsidy and expanding support for medium- and large-sized trucks and small passenger vans.
According to the Seoul Metropolitan Government on the 18th, among this year’s EV supply quota for the private sector, the allocation for the first half of the year by vehicle type is 10,500 passenger cars, 1,200 trucks, 840 taxis, 158 vans, and 21 children’s school vehicles.
This year, the city will introduce a new transition subsidy of up to 1.3 million won to support the spread of electric vehicles. It plans to significantly reduce the financial burden on citizens by preparing additional tailored support measures by vehicle type.
Electric vehicles with superior performance in terms of charging speed, driving range, and battery efficiency will receive preferential subsidies, thereby encouraging manufacturers’ technological innovation and voluntary price reductions.
Previously, the city supplied 19,081 electric vehicles last year, bringing the cumulative number to over 120,000. This accounts for 7.9% of last year’s new vehicle registrations and 3.4% of all registered vehicles in Seoul. The greenhouse gas reduction effect from EV deployment is estimated at about 220,000 tonnes of CO2 equivalent (tCO2eq), which is comparable to planting approximately 1.58 million pine trees per year.
Charging and safety infrastructure is also being continuously expanded. As of last year, the city had installed a total of around 80,000 chargers, enough to serve more than 320,000 vehicles, and promoted projects to support EV fire-prevention safety facilities such as early fire detection systems using thermal imaging cameras and CCTV in apartment complexes and other multi-unit housing.
For electric passenger cars, subsidies of up to 7.54 million won are available depending on vehicle price and eligibility. When combined with the transition subsidy and various additional subsidies, the benefits available to citizens increase further.
Individuals who, on or after the 1st of this month, dispose of an existing internal combustion engine vehicle (through sale or scrappage) and purchase an electric vehicle (passenger car or truck) are eligible for an additional transition subsidy of up to 1.3 million won, consisting of 1 million won from the national budget and 300,000 won as a municipal subsidy from the Seoul Metropolitan Government budget. This applies only to vehicles owned for at least three years, and transfers or sales between family members (spouses and lineal ascendants or descendants) are excluded.
Low-income and near-low-income households and young first-time electric vehicle buyers will receive an additional 20% of the national budget subsidy, while multi-child families can receive up to an extra 3 million won depending on the number of children.
For taxis, on top of the passenger car subsidy, an additional 2.5 million won in taxi-specific support is provided (1.92 million won from the national budget and 580,000 won as a municipal subsidy from the Seoul Metropolitan Government budget). In consideration of their long driving distances, an extra 100,000 won in municipal subsidy from the Seoul Metropolitan Government budget is offered if the battery warranty is at least five years or 350,000 kilometers.
Support for electric trucks will be expanded this year from the previous focus on small trucks (1 ton or less) to include medium- and large-sized trucks. Subsidies are available up to 13.65 million won for small trucks, 52 million won for medium-sized trucks, and 78 million won for large trucks.
Among small electric trucks, those used as delivery vehicles operating mainly within residential areas will receive an additional 1 million won (10% of the national budget subsidy), and the previous requirements to scrap an existing diesel truck and to have operated it for six months will be abolished.
If manufacturers or importers discount the vehicle price by 500,000 won, the city will provide an additional 500,000 won in municipal subsidy from the Seoul Metropolitan Government budget, allowing buyers to receive a total of 1 million won. For delivery vehicles, a further 500,000 won is added, enabling them to receive up to 1.5 million won in additional support.
For electric buses (electric vans and coaches), subsidies are available up to 100 million won for large buses, 70 million won for medium-sized buses, and 19.5 million won for small buses. Starting this year, support for small buses has been newly introduced, diversifying the range of eligible vehicle types. For children’s school buses, subsidies are available up to 149.5 million won for large buses, 110.5 million won for medium-sized buses, and 39 million won for small buses.
Kwon Min, Director-General of Climate and Environment at the Seoul Metropolitan Government, said, "To accelerate the popularization of electric vehicles, we will expand subsidy benefits compared to last year and actively promote the transition in commercial vehicle segments such as trucks, taxis, and buses. Through these efforts, we will strive to simultaneously achieve carbon reduction and air quality improvement and provide citizens with a more pleasant and livable urban environment."

chlee1@fnnews.com Lee Chang-hoon Reporter