The total number of electric vehicles to be sold in Korea for the new year was set at 3,000, with tax exemption benefits of up to 4.2 million to be extended by 2017. (image credit: Kobizmedia/ Korea Bizwire)
SEOUL, Dec 21 (Korea Bizwire) – Beginning next year, the government will increase its level of subsidies given to electric vehicle buyers while extending the time limit for tax benefits by 2017. It will also support the auto industry to improve its EV capabilities so that the electric cars can drive up to 300 kilometers in one charge.
On December 19, the Ministry of Trade, Industry and Energy and the Ministry of Environment said they held a “Green Growth Committee” meeting and discussed ways to accelerate commercialization of electric vehicles.
According to the plans, the total number of electric vehicles to be sold in Korea for the new year was set at 3,000, with tax exemption benefits of up to 4.2 million to be extended by 2017. In addition, the government ministries will try to diversify the type of electric vehicles from passenger cars to EV taxis (140 units), buses (64), and cargo trucks (30).
The mileage of electric cars is typically only a quarter of gasoline-based cars. Even though the continuous improvement in single-charge driving distance of electric vehicles, the current driving distance still remains at 150 kilometers (120 km when the heater is on), a far cry from the gas-fueled car’s 620 kilometers.
The total number of electric vehicles to be sold in Korea for the new year was set at 3,000, with tax exemption benefits of up to 4.2 million to be extended by 2017. (image credit: Kobiz Media)
The government will spend 22.2 billion won in 2015 to help the industry improve five EV technology areas including high-efficiency motor, battery temperature control, dieless forming, high-efficiency HVAC control, and high-voltage electric control.
In addition, it will also expand subsidies to those who purchase electric cars. The number of EV buyers to benefit from subsidies will rise to 3,000 units next year to 64,000 by 2020. Government agencies and state-run enterprises will need to fill up to 25 percent of their vehicle fleets with electric cars.
As part of increasing the purchase of electric vehicles, the ministries will try to remove the greatest bottleneck, the lack of charging stations across the country. Currently EV charging stations are mostly concentrated in Seoul, Gyeonggi and Jeju areas.
The number of publicly-run high-speed charging stations will be increased to 1,400 by 2020 from only 177 now, with the number of those on highways to be expanded to 200 by 2020 from six established this year. It will also provide financial support to private charging station operators and those running portable charging equipment.
By Sean Chung (schung10@koreabizwire.com)
