Choo Kyung-ho "Considering Expansion of Electric Vehicle Subsidy Support"

The government is considering expanding the eligibility criteria for electric vehicle subsidies.

On the 20th, Deputy Prime Minister and Minister of Economy and Finance Choo Kyung-ho, after visiting the Noryangjin Fish Market, told reporters, "Recently, competition for electric vehicles has become fierce worldwide, and demand has been relatively low," adding, "We are looking for ways to expand the subsidy support targets and strengthen the subsidy incentive system." He said, "We will complete consultations with related ministries by next week and make an announcement."

He explained that the strengthening of electric vehicle subsidy incentives will be implemented temporarily in the fourth quarter of this year. Regarding the recent rise in international oil prices and its impact on the domestic market, Deputy Prime Minister Choo said, "There are many uncertainties about which direction (oil prices) will take, so we will closely monitor the situation and respond to price increases."

Regarding media reports about increasing the research and development (R&D) budget, Deputy Prime Minister Choo drew a clear line, saying, "We have never considered that." In response to criticism that the reduction of the R&D budget would discourage research by young researchers, he explained, "The support budget for young researchers has increased to the 30% range," adding, "Upon reviewing the R&D budget from the beginning, it was found that the related budget had increased rapidly and excessively over time, so the intention is to focus investment on areas that can open the future."

He also rejected measures such as tax increases or government bond issuance to cover the shortfall in tax revenue. He said, "It is inappropriate to discuss expanding tax revenue or raising taxes while the economy is struggling, and it is not what the public desires," adding, "(Government bond issuance) increases national debt," and "I do not agree with the idea that national debt can be easily increased whenever necessary." Regarding the tax revenue discrepancy, he said, "I sincerely apologize to the public for the occurrence of the tax revenue discrepancy," and added, "We plan to receive consulting from the Organization for Economic Cooperation and Development (OECD) and the International Monetary Fund (IMF) to review the (tax revenue estimation) method."