Eco-friendly Vehicle Business, Did Busan See It?…Nation's First Support for Electric Vehicle Purchase by Childbirth Families

Up to 1.5 Million KRW Support with "Ijoa Busanjoa" Program
Busan-Exclusive "Regional Discount System" to Be Expanded This Year

Busan City (Mayor Park Hyung-jun) has introduced a policy to support families with newborns purchasing electric vehicles, the first of its kind nationwide.

On the 5th, Busan City announced that it will implement the ‘Ijoa Busanjoa’ program for the first time this year to support families with newborns purchasing electric vehicles. This project was planned to alleviate the financial burden on families with newborns purchasing electric vehicles.

Busan City will be the first in the nation to implement ‘Ijoa Busanjoa,’ which provides up to 1.5 million KRW in support for families with newborns purchasing electric vehicles this year. For citizens who purchase passenger electric vehicles after January 2024 and have given birth, the program offers 1 million KRW for the first child and 1.5 million KRW for the second child or more.

The existing electric vehicle purchase subsidy program will also be implemented concurrently. The subsidy program is promoted in two phases each year, first and second half. The target for support in the first half of this year includes 5,122 electric vehicles: 3,770 passenger cars, 1,200 cargo vehicles, 140 buses, and 12 children’s school buses.

Purchase subsidies are provided as follows: up to 8.1 million KRW per passenger car, up to 13.8 million KRW per cargo vehicle, and up to 120 million KRW per children’s school bus. However, subsidies vary depending on the price of the purchased vehicle.

Additionally, the ‘Regional Discount System,’ first implemented nationwide last year, will be expanded this year. The Regional Discount System offers up to 500,000 KRW discount from participating electric vehicle manufacturers or importers and an additional 500,000 KRW support from Busan City when Busan citizens purchase electric vehicles from participating companies.

Last year, 1,066 citizens who purchased electric vehicles through the Regional Discount System received a total discount benefit of 1.38 billion KRW. This year, the number of supported vehicles under the Regional Discount System will be expanded to 2,000, and participating companies are being recruited. Currently, three companies?Hyundai Motor Company, EVKMC, and Parts Mall A2G?have agreed to participate in the first half supply project, with plans to expand participating companies in the future.

Considering the difficult economic conditions, Busan City will also strengthen support for livelihood-type electric vehicles. An additional 2.5 million KRW in national subsidies will be provided for electric taxis, 30% of the national subsidy amount for small business owners purchasing cargo vehicles, and an additional 10% national subsidy for delivery vehicles meeting support conditions and for farmers.

Moreover, an additional 20% of the national subsidy will be provided for low-income households and those purchasing an electric passenger vehicle for the first time in their lifetime. However, depending on the vehicle price, applicants may be excluded from receiving basic pension, disability pension, rental housing, and other benefits, so careful review is required when applying.

From the 5th, citizens aged 18 or older who have continuously resided in Busan for at least 60 days prior to the application date, as well as corporations and public institutions, can apply for subsidy support. When a buyer purchases an electric vehicle, the manufacturer and dealership apply for the subsidy for the eligible vehicle through the ‘Ministry of Environment Zero-Emission Vehicle Integrated Website.’

This year, the residency requirement for 2024 has been shortened from 90 days to make purchasing electric vehicles easier. On the other hand, the repurchase restriction period remains the same as last year: 2 years for passenger vehicles and 2 years for cargo vehicles. For sole proprietors and corporations, the first vehicle can receive local government subsidy support, but from the second vehicle onward, applications must be made to the Korea Environment Corporation. If the vehicle is sold within 2 years of registration, city approval is mandatory.

Lee Byung-seok, Director of Busan City Environmental Policy Office, said, “Although 2024 faced many difficulties in electric vehicle distribution due to electric vehicle fires and economic downturn, we overcame them with Busan’s distinctive distribution policies,” adding, “This year, we will continue to create a child-friendly environment city through various electric vehicle expansion policies.”

For more details, please check the city’s website under notices and announcements.

Major Changes This Year Compared to 2024.

Electric Vehicle Subsidy Support Procedure.