Thursday, April 18, 2024

Business

S. Korean govt mulls further cut in EV subsidies

IANS | March 31, 2024 11:21 AM

SEOUL: The government is considering further cutting electric vehicle (EV) subsidies next year to instead use the funds to supplement insufficient charging infrastructure, sources said on Sunday.

According to the sources, government ministries overseeing EV subsidy policy, including the finance and environment ministries, are discussing ways to reduce EV subsidies for next year based on state budget guidelines for 2025.

During the discussions, the finance ministry has stressed the need to strengthen the efficiency of subsidies for EVs while strengthening the supply of charging infrastructure, reports Yonhap news agency.

"The direction of subsidy policy has been about increasing the number of recipients while reducing the volume of individual support, " a finance ministry official said.

Another official said, "By reducing the unit price, funds will be saved to be used for expanding charging infrastructure, which is still considered a weak point.

The government has reduced the budget for the promotion of zero-emission vehicles from 2.56 trillion won ($1.89 billion) in 2023 to 2.31 trillion won this year.

Last month, the environment ministry announced the revision to the electric vehicle purchase subsidy plan, reducing the unit subsidy for EVs from the previous maximum of 5 million won to 4 million won.

Have something to say? Post your comment