Environment Minister: "Electric Vehicle Subsidies Will Not Be Raised Without Other Measures"

Kim Wan-seop, Minister of Environment, is giving opening remarks at a press briefing held on the 4th at the Ministry of Environment building in Sejong City. Photo by Ministry of Environment

On the 4th, Kim Wan-seop, Minister of Environment, said, "Unless there is another occasion, it seems unlikely that the electric vehicle subsidies will be increased."

This remark came during a press briefing held at the Ministry of Environment building in Sejong City, in response to a question about rumors that subsidies would be raised by the end of the year due to sluggish electric vehicle sales. Electric vehicle sales have been sluggish, affected by the early-year chasm (temporary demand slowdown) and a fire incident involving a Mercedes-Benz electric vehicle in early August. As of September, the domestic sales volume of the five major automakers was 982,538 units, a 9.6% decrease compared to the previous year. Consequently, the industry speculated that the Ministry of Environment might adjust the timing and ceiling of additional electric vehicle subsidies.

However, with Minister Kim effectively stating that there will be no increase, the electric vehicle subsidies are planned to be maintained at the current level. This year, the subsidy target for electric passenger cars is 233,000 units, with a subsidy of 4 million KRW per vehicle. Next year, the target will increase to 260,000 units, but the subsidy will be reduced to 3 million KRW. Subsidies for electric commercial vehicles will also be reduced from the current 11 million KRW to 10 million KRW.

He also expressed the Ministry’s stance on the voluntary implementation of the disposable cup deposit system. The Ministry of Environment had planned to expand the disposable cup deposit system nationwide but recently changed its position to promote it voluntarily without enforcement. Minister Kim said, "I thought it was not best to uniformly enforce the system nationwide on the public," adding, "I believe it is not the government's role to enforce a uniform and unfeasible method."

However, he emphasized that this does not mean withdrawing efforts to reduce plastics, including disposable cups. Minister Kim stated, "Everyone agrees that reducing disposable products is essential," and added, "If it costs money but the effect is certain, I believe investment should be made." He further explained, "This is not about leaving it to those who want to do it and not doing it for those who don’t."

Regarding regions opposing climate response dams, he expressed willingness to communicate, saying, "I hope we can have sufficient dialogue." The Ministry of Environment announced plans at the end of July to build climate response dams in 14 locations, but opposition voices have emerged in Yanggu, Gangwon (Suipcheon Dam), Cheongyang, Chungnam (Jicheon Dam), Danyang, Chungbuk (Danyangcheon Dam), and Hwasun, Jeonnam (Dongbukcheon Dam).

Minister Kim lamented, "In the case of Suipcheon Dam, we have not had enough dialogue to develop or coexist with the region in various aspects," and added, "I think it would be good to meet the residents’ wishes, which is regrettable."