Cumulative Target of 100,000 Units This Year
The Seoul Metropolitan Government announced on the 26th that it will begin accepting applications for purchase subsidies for 12,053 electric vehicles to be supplied in the first half of the year, aiming to reach a cumulative total of 100,000 electric vehicles this year starting tomorrow.
The supported vehicles include passenger cars, cargo trucks, children’s school vehicles, and circulator/commuter buses. Of the 12,053 vehicles supplied in the first half, ▲11,856 are for the private sector and ▲197 for the public sector. By vehicle type in the private sector, there are ▲6,300 passenger cars ▲2,500 cargo trucks ▲1,500 two-wheelers ▲1,500 taxis ▲40 city and village buses, 10 children’s school vehicles, and 6 circulator/commuter buses.
The Seoul Metropolitan Government announced the ‘2023 Electric Vehicle Private Sector Supply Project’ and provided information on the number of vehicles supplied by type and sector as well as subsidy details. Applications will be accepted from the 27th on the Ministry of Environment’s Zero-Emission Vehicle Integrated Website.
Applicants must be individuals, sole proprietors, corporations, or public institutions who have resided or had an office in Seoul for more than 30 days as of the application date, and must have signed a purchase contract with the vehicle manufacturer or importer, who will then apply for the subsidy. Only vehicles that can be delivered within two months are eligible for application.
First, subsidies for electric passenger cars are provided differentially based on vehicle price and performance. Vehicles priced under 57 million KRW are eligible for up to 8.6 million KRW (6.8 million KRW national subsidy, 1.8 million KRW city subsidy), vehicles priced between 57 million KRW and under 85 million KRW receive 50% of the subsidy, and vehicles priced at 85 million KRW or above are excluded from subsidy eligibility.
Electric cargo trucks receive support ranging from 8.25 million KRW (ultra-small) up to 16 million KRW (small), depending on the vehicle type. For special cargo trucks such as refrigerated trucks, support can currently reach up to 19.46 million KRW.
For children’s school vehicles, applicants must have received a children’s school vehicle registration certificate (including prospective recipients), and can receive up to 75 million KRW. Circulator and commuter buses (medium-sized vans) for welfare and medical facilities can be applied for only by corporate vehicles, with support of 70 million KRW per vehicle, up to two vehicles. The city plans to conduct additional supply in the second half of the year depending on demand from the first half applications.
Starting this year, sole proprietors purchasing electric vehicles can apply for only one vehicle within the subsidy reapplication restriction period, just like individuals. Corporations purchasing two or more electric vehicles (passenger or cargo) within the restriction period can receive only the national subsidy through the Korea Environment Corporation.
The subsidy recipient selection method remains the same as last year, based on vehicle delivery and registration order. The subsidy is paid directly by the Seoul Metropolitan Government to the vehicle manufacturer or importer, so buyers pay only the remaining amount after deducting the subsidy from the vehicle purchase price.
Lee In-geun, Head of the Seoul Metropolitan Government’s Climate and Environment Headquarters, said, “Seoul has been actively promoting the supply of electric vehicles to reduce greenhouse gases and fine dust, and we expect to achieve a cumulative supply of 100,000 vehicles within this year.” He added, “We will make multifaceted efforts, including building a charging network in residential areas, to achieve a 10% electric vehicle supply rate by 2026.”
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