"Up to 9.9 Million KRW per Vehicle" Daejeon City to Provide Subsidies for 3,367 Electric Cars This Year

Daejeon City announced on the 4th that it will provide subsidies totaling 53.2 billion KRW for 3,367 units through this year's electric vehicle distribution project.

The electric vehicle distribution project will continue throughout the year from this day (the 4th) until the budget is exhausted. Subsidies are provided differentially by vehicle type. Electric passenger cars can receive up to 9.9 million KRW per vehicle, and electric cargo trucks can receive up to 14.5 million KRW per vehicle.

The differential subsidy support is determined by considering fuel efficiency, driving range, energy efficiency, provision of vehicle safety information, battery environmental impact, manufacturer after-sales service and charging conditions, among other factors.

This year, in addition to the basic subsidy by vehicle type, some national government additional subsidies have been restructured. According to the Ministry of Environment's electric vehicle distribution operation guidelines, the core of the restructuring is to ensure that vulnerable groups, children’s school commute vehicles, delivery cargo trucks, small business owners, lower-income groups, electric taxis, and other electric vehicle buyers can receive practical benefits.

For example, children’s school commute vehicles have changed from a fixed support of 5 million KRW to an additional 20% national subsidy, and small business owners continue to receive an additional 30% national subsidy as in the previous year.

Delivery vehicles receive an additional 10% national subsidy if maintained and operated as delivery vehicles for six months after the vehicle’s release date, and if the owner is a small business owner, overlapping support allows a total of 40% subsidy.

When lower-income groups purchase electric passenger cars, the support scale expands from the existing 10% additional national subsidy to 20%. Furthermore, if conditions such as youth (aged 19 to 34) and first-time vehicle purchase are all met under the same conditions, the national additional subsidy increases up to 30%.

Electric taxis receive 2.5 million KRW, an increase of 500,000 KRW from the previous national subsidy of 2 million KRW.

Applications for subsidy support can be made by individuals or corporations who have continuously resided in Daejeon for at least 90 days prior to the application date and have signed a purchase contract for an electric vehicle through the vehicle manufacturer or importer.

Daejeon City plans to select recipients in the order of vehicle release and registration. However, if the vehicle is not released within two months after applying for purchase support, the selection will be canceled, so applications should be made according to the release schedule.

Existing recipients of electric vehicle subsidies are also subject to restriction periods. Individuals are subject to a restriction period of 2 years for passenger and van vehicles and 5 years for cargo vehicles. Corporations are also restricted from receiving subsidies for 2 years for passenger vehicles and 5 years for cargo vehicles. However, corporate taxis (passenger), ultra-small (passenger), compact (cargo), and ultra-small (cargo) vehicles are exempt from the restriction period.

For more detailed information about the electric vehicle distribution project, please refer to the announcements posted on the Daejeon City website and the Zero Emission Vehicle integrated website.