[Alpha Biz=(Chicago) Reporter Kim Jisun] In the case of subsidies for the purchase of electric vehicles paid from this year, domestic and imported cars will be applied differently. If there is no direct after-sales management (AS) center, it will be cut by up to 20%, as most imported car brands operate service centers through their partners in Korea.

The Ministry of Environment unveiled the '2023 Electric Vehicle Purchase Subsidy Reform Plan' jointly with related ministries on the 2nd.

Under the reform plan, electric cars can receive 100 percent of purchase subsidies if they cost less than 57 million won. It was raised from 55 million won, which was the full support baseline last year, to reflect inflation.

The upper limit of subsidies will remain below 85 million won, while half of the subsidies will be provided to electric cars ranging from 57 million won to 85 million won.

Instead of reducing the unit price of performance subsidies for medium and large electric vehicles from 6 million won to 5 million won, the company will provide 215,000 units, up about 31 percent from the previous year.

In consideration of the price difference depending on the class, the upper limit of performance subsidies for small and light electric vehicles was newly established at 4 million won, and subsidies for ultra-small electric cars were reduced from 4 million won to 3.5 million won. Micro-electric vehicles have expanded additional support for the subsidy calculation to 20%.

Initially, the Ministry of Environment tried to differentiate performance subsidies by 50% due to the presence or absence of a direct service center and a computer system, but the gap was reduced as the imported car industry protested. Most foreign automakers operate service centers through domestic partners.

 

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