20% Additional Subsidies If Young People Buy Electric Cars As 'First Car'

The government has decided to expand subsidies and strengthen the foundation such as chargers to cope with the "casm," a temporary slowdown in demand for electric vehicles.

The Ministry of Trade, Industry and Energy announced the "Eco-friendly Vehicle and Secondary Battery Competitiveness Enhancement Plan" at a meeting of related ministers.

First of all, subsidies will be expanded in proportion to the manufacturer's discount on electric vehicle prices, and subsidies for the first round of life for young people aged 19 to 34 will also be paid an additional 20%.

In addition, the reduction of highway tolls for eco-friendly cars will be extended until 2027, and fuel efficiency standards for medium and large electric vehicles will be subdivided to expand to individual consumption tax and acquisition tax benefits.

In addition, 4,400 additional rapid chargers will be expanded this year, and the system will be improved by subdividing the usage time of each vehicle and charging fees for parking after charging is completed.

The government also decided to prepare a cross-ministerial technology plan with the aim of commercializing fully autonomous vehicles in 2027 and develop a next-generation automobile platform by next year.

In addition, it will build a test site for the development and commercialization of next-generation batteries such as all-solid batteries and lithium metal batteries, and invest 430 billion won in developing core electric vehicle technologies.

The government also plans to step up its activities to counter external uncertainties, including the launch of a new U.S. government.