While more Koreans are looking into purchasing an electric vehicle, the amount of financial support provided by local governments differs greatly, making the purchasing process somewhat unfair. (Image : Yonhap)
SEOUL, March 21 (Korea Bizwire) – Consumers are taking an increasing interest in electric vehicles after the International Electric Vehicle Expo (IEVE) was recently held on Jeju Island. While more Koreans are looking into purchasing an electric vehicle, the amount of financial support provided by local governments differs greatly, making the purchasing process somewhat unfair.
According to an industry report, the Ministry of Environment increased the number of electric vehicles it intends to support financially from 3,000 units to 8,000 units. Consumers can also benefit from an additional four million-won subsidy for the installation of a slow charger, making it the perfect timing to purchase an electric vehicle.
The amount of financial support provided by the government decreased to 12 million won from the 15 million won provided last year. However, combining the financial support of local governments (a maximum of eight million won) and tax benefits (four million won), the total amount of financial aid for those purchasing electric vehicles has increased.
However, each local government is offering a different amount of financial support to consumers when they buy an electric car. While the sum ranges between zero to eight million won, consumers are paying different costs depending on where they buy their EV.
Suncheon in Jeonnam Province is the city offering the most financial support. Combining an eight-million-won subsidy from the local government with the 12-million-won support from the government, consumers can save a total of 20 million won.
Jeju (seven million won), Pohang (six million won), Seoul/Gyeonggi/Busan (five million won), and Gwangju/Daejeon (three million won) also provide financial support to consumers. However, Chungju, Asan, and Gwangyang do not offer any financial assistance.
For instance, customers purchasing a Hyundai Ioniq Electric (40 million won) in Suncheon will only pay 20 million won after the subsidies are taken into consideration. The price for the same vehicle ranges from 21 million to 28 million won in other cities that provide financial support.
Industry officials comment that it might be unfair to consumers, but since the financial support is provided based on the financial condition of the local government, it is natural that differences will occur.
By M.H.Lee (mhlee@koreabizwire.com)
