Chinese-made EVs accounted for 38.1% of newly registered EVs in South Korea from January to September this year, prompting the South Korean government to consider introducing a tax credit scheme to protect domestic automakers. A policy to exclude BYD from subsidy eligibility is also under discussion.
Of the EVs newly registered from January to September this year, 112,968 were made in China, accounting for 38.1% of the total. Among electric passenger vehicles, Chinese-made vehicles accounted for 43.5% and South Korean-made vehicles for 48.7%, with the share of South Korean-made vehicles falling below 50% for the first time.
In its tax law amendment proposal in August this year, the government included semiconductors and secondary batteries among the items eligible for tax credits, but excluded EVs. While the government has prioritized support for core parts and materials, some view the surge of Chinese-made EVs as having changed the situation.
Deputy Prime Minister Lee Byung-il (李炳日) visited the technology research institutes of Hyundai Motor and Kia and received requests from the companies to introduce a tax credit scheme. The government has expressed its intention to participate actively in discussions in the National Assembly, but no decision has been made on whether to introduce the scheme.
Related bills concerning the introduction of a tax credit scheme for EV production have also been submitted to the National Assembly, and the Ministry of Economy and Finance is advancing the discussions. The selection of businesses eligible for subsidies will be influenced by assessments of domestic supply chains and after-sales service.