Choo Kyung-ho Visits Hyundai Motor Plant: "Strengthening Tax Support for Electric Vehicle Investments"

Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho urged the automobile industry to actively invest by providing tax credit benefits for electric vehicle production facilities up to 35% in accordance with the Restriction of Special Taxation Act.

On the 9th, Deputy Prime Minister Choo visited Hyundai Motor Company's Ulsan plant to inspect the electric vehicle production and export site and made these remarks during a meeting with industry officials.

Deputy Prime Minister for Economic Affairs Choo Kyung-ho is delivering opening remarks at the Ministerial Meeting on External Economic Affairs held at the Government Seoul Office in Jongno-gu, Seoul, on the 8th. Photo by Yoon Dong-joo doso7@

This site visit was arranged to mark the first anniversary of the Yoon Suk-yeol administration, to visit key national projects related to the advancement of core industries such as automobiles, review achievements, and explain the government's policy direction to secure a leading position in the future mobility market, including electric vehicles.

Deputy Prime Minister Choo examined the electric vehicle production process at Hyundai Motor's Ulsan Plant 1 production line and then moved to the shipping dock within the Ulsan plant to inspect the automobile export site.

At the subsequent electric vehicle industry field meeting, Deputy Prime Minister Choo evaluated, "Although exports of major sectors such as semiconductors are sluggish, the automobile sector continues to achieve record-high export performance centered on electric vehicles, supporting the revitalization of our economy."

He added, "The government will fully support the expansion of investment and strengthening of competitiveness in the future mobility sector," and explained, "We will actively promote the development of core technologies for future mobility such as battery performance enhancement and autonomous driving safety improvement, as well as the training of specialized personnel."

Deputy Prime Minister Choo emphasized the automobile industry's active investment again, stating, "In particular, we plan to provide tax credit benefits under the Restriction of Special Taxation Act for investments in electric vehicle production facilities as part of national strategic technologies." The tax credit benefit for national strategic technology investments is a system that grants up to 25% tax reduction for large and medium-sized enterprises and up to 35% for small and medium-sized enterprises in sectors such as semiconductors and electric vehicles.

Participants in the meeting agreed on the importance of transitioning to future mobility. Hyundai Motor Company announced plans to establish a dedicated electric vehicle factory worth 2 trillion won at the Ulsan plant to secure global leadership in the future mobility sector. Partners and parts industries requested government attention and support for the transition to future vehicles.

Deputy Prime Minister Choo encouraged continuous innovation and investment by the automobile industry and urged public and private sectors to work together to leap into the global top three automobile industries by 2030.

Meanwhile, the site visit was attended by Deputy Prime Minister Choo, the Director-General of the Taxation Office of the Ministry of Economy and Finance, the Director-General of Policy Coordination, a youth aide, Hyundai Motor CEO Jang Jae-hoon, Korea Automobile Manufacturers Association Chairman Kang Nam-hoon, Korea Automobile Industry Cooperative Chairman Shin Dal-seok, Hyundai-Kia Cooperation Chairman Moon Sung-jun, and other executives and staff.