[2020 Green Mobility Award] "Hydrogen Bus Subsidies Should Be Increased to the Level of Hydrogen Passenger Cars"

Asia Economy 10th Green Mobility Awards
Breakfast Lecture by Jeong Manki, President of Korea Automobile Manufacturers Association
"Need for Eco-Friendly Vehicle Policies Meeting Global Standards"

[Asia Economy Reporter Su-yeon Woo] The reason why Jeong Manki, chairman of the Korea Automobile Manufacturers Association (KAMA), is raising his voice about the reform of eco-friendly vehicle subsidy policies is that there are still many loopholes in South Korea's current subsidy policies. He argues that support policies aligned with global standards are needed, ranging from eco-friendly vehicle purchase subsidies to charging infrastructure construction costs.

In particular, Chairman Jeong points out that there is an issue of fairness because the ministries leading subsidy policies differ between China and South Korea. In China, the Ministry of Industry and Information Technology, which corresponds to South Korea's Ministry of Trade, Industry and Energy, is responsible for subsidy policies and focuses on industrial development rather than environmental regulations. However, in South Korea, the Ministry of Environment leads the policies, focusing on environmental regulations, according to his explanation.

Specifically, China limits subsidy support targets to eco-friendly vehicles equipped with vehicles and batteries produced domestically to promote its own industrial development. In line with this global trend, the South Korean government has also restructured its subsidy system focusing on the performance and environmental friendliness of electric vehicles and batteries, but in the commercial vehicle market, it is helpless against Chinese vehicles that emphasize price competitiveness. More than 40% of South Korea's electric bus subsidies last year were provided to Chinese-made electric buses due to these loopholes.

Jeong Manki, Chairman of the Korea Automobile Manufacturers Association, is giving a lecture on the topic "Global Eco-friendly Vehicle Market Trends and Our Choices" at the "2020 Korea Green Mobility Awards" hosted by Asia Economy on the 29th at the Chosun Hotel in Jung-gu, Seoul. Photo by Kang Jinhyung aymsdream@

He also pointed out problems with the subsidy calculation system between electric buses and hydrogen buses. Chairman Jeong emphasized that in the commercial vehicle market, which Chinese companies are encroaching upon, subsidies for hydrogen vehicles (buses) should be raised to the level of passenger cars.

He said, "Just as the subsidy difference between electric vehicles and hydrogen vehicles in the passenger car sector reaches about 2 to 2.5 times, the subsidy for hydrogen buses, which have higher prices, should also have a similar difference compared to electric vehicles," adding, "To popularize hydrogen buses, more investment must be made in infrastructure so that the market can become self-sustaining."

The reason Chairman Jeong emphasizes support for the hydrogen vehicle market is that from the perspective of the energy production cycle, hydrogen energy can be a truly 'clean energy.' While electric vehicles inevitably use fossil fuels during electricity generation, hydrogen emits no carbon dioxide throughout the entire resource generation process. If 100,000 hydrogen vehicles run for two hours, they can purify an amount of air equivalent to what 86% of Seoul's population would use in one hour, demonstrating excellent environmental improvement capabilities.

Chairman Jeong stressed that for the global eco-friendly vehicle market to grow, government policies and consumer demand must be properly balanced. He argues that with consistent policy direction and the release of competitively priced vehicles, consumer demand can be appropriately maintained, allowing the eco-friendly vehicle market to grow healthily.

He also pointed out that South Korea's environmental regulations are excessive due to the effect of dual regulations. Currently, South Korea applies stronger carbon dioxide (CO2) emission regulations than Europe and has introduced a zero-emission vehicle supply target system. Only three places worldwide?the U.S. state of California, China, and South Korea?have adopted mandatory zero-emission vehicle sales systems.

Chairman Jeong said, "South Korea has become the country with the strongest environmental regulations because it has adopted both California's and Europe's environmental regulations," adding, "Paradoxically, strong environmental regulations can be a driving force for market growth but at the same time cause a decline in competitiveness."

On the 29th, award recipients and key guests are posing for a photo at the '2020 Korea Green Mobility Awards' hosted by Asia Economy at the Chosun Hotel in Jung-gu, Seoul. From the left, counterclockwise: Jeon Sun-il, Executive Director of Hyundai Motor Company; Choi Young, Executive Director of POSCO; Lim Soo-gil, Vice President of SK Innovation; Lee Sang-tae, EV Project Leader of Global Business Development Division at Renault Samsung Motors; Kim Byung-soo, Team Leader of Korea GM; Kim Sung-soo, Executive Director of Hyosung; Lee Dong-gyu, Vice President of Kakao Mobility; Chung Man-ki, President of Korea Automobile Manufacturers Association; Jung Seung-il, Vice Minister of Ministry of Trade, Industry and Energy; Choi Young-beom, President of Asia Economy; Park Kwang-seok, Director of Planning and Coordination Office at Ministry of Environment; Kim Pil-su, Professor at Daelim University. Photo by Kang Jin-hyung aymsdream@

Meanwhile, participants attending the event also proposed various solutions for the development of South Korea's eco-friendly vehicle market. Seung-il Jeong, Vice Minister of the Ministry of Trade, Industry and Energy, said, "By 2021, we will build 10,000 electric vehicle charging stations, increasing the number to a level similar to the current number of gas stations nationwide," adding, "We will also expand hydrogen charging stations to about 160 by the end of this year, simultaneously building electric and hydrogen vehicle infrastructure to enhance the convenience of eco-friendly vehicles."

Professor Pil-su Kim of Daelim University, who served as a judge, said, "The next 10 years will be a period when the concept of future mobility will change dramatically," adding, "Industry, academia, research, and government must unite their intentions, and public awareness must change for the mobility industry to evolve as a future growth engine."