This year's subsidies for electric passenger vehicles will be reduced by about 10% compared to last year.
The basic subsidies based on performance will be significantly reduced from 4 million won to 3 million won for medium to large vehicles. The differentiation of subsidies based on single-charge driving range will also be strengthened. Until last year, subsidies were differentiated for every 10 km reduction based on a full charge driving range of 400 km, but from this year, it has been set at 440 km. The reduction amount of subsidies for each 10 km decrease in driving range will increase from 68,000 won to 81,000 won for medium to large vehicles.
However, the subsidy for enhancing battery safety, which was previously only granted an additional 200,000 won if equipped with an on-board diagnostics system (OBDⅡ), will now provide an additional 300,000 won based on vehicle battery options such as battery status information provision (200,000 won) and BMS notification function (100,000 won).
The Ministry of Environment announced that they will pre-announce the administrative notice of the '2025 plan for revising electric vehicle purchase subsidies' from the 2nd to the 12th. The Ministry explained that the subsidy system was revised with the intention of inducing technological innovation from manufacturers by providing more subsidies to high-performance electric cars with longer single-charge driving ranges and faster charging speeds.
It is also characterized by a strengthening of the responsibility of electric vehicle manufacturers and importers, including inducing the introduction of safety management functions and ensuring product liability as collateral. To expand the accessibility of electric vehicles for vulnerable groups, subsidies will also be expanded for low-income groups, young first-time car buyers, and multi-child families.
The basic subsidies for electric passenger vehicles will be reduced from a maximum of 4 million won to 3 million won for medium to large vehicles. For small vehicles, the reduction is from a maximum of 3 million won to 2.5 million won, and for very small vehicles, it is from 2.5 million won to 2 million won.
For vehicles with a driving range of less than 440 km, the reduction in subsidies will be expanded. The range for additional subsidies based on charging speed will also be increased. Last year, vehicles capable of charging over 200 kW could receive an additional 300,000 won in subsidies, but this year, vehicles must be capable of fast charging over 250 kW to receive the additional 300,000 won subsidy. Additional subsidies of 250,000 won, 200,000 won, and 150,000 won will be provided to vehicles capable of charging in the ranges of 200-250 kW, 150-200 kW, and 100-150 kW, respectively.
To enhance battery safety, vehicles that provide battery status information in addition to OBDⅡ and offer functions such as abnormal detection and alert during parking will receive an additional safety subsidy, totaling 500,000 won.
The responsibility of car manufacturers is also reinforced. No subsidies will be provided if the manufacturer is not subscribed to 'product liability insurance' or does not provide state of charge (SOC) information to chargers. If a current vehicle lacks an update to such a battery management system, resulting in its disposal and the purchase of a new electric vehicle, additional subsidies will be provided.
The criteria for the full subsidy support for electric vehicles will also be raised. The vehicle price eligible for full subsidy support will be tightened from 55 million won to 53 million won. This is based on the release price, and temporary price reductions by manufacturers or importers will not be recognized.
However, manufacturer discounts are provided in the form of incentive subsidies. If manufacturers or importers offer discounts on vehicles priced below 53 million won, subsidies will be additionally supported, proportionally at 20% for discounts up to 5 million won and 40% for discounts exceeding 5 million won. Vehicles priced above 53 million won will not receive corporate discount incentives.
If a low-income household purchases an electric vehicle, they will receive an additional 20% of the total subsidies. Young adults (ages 19-34) purchasing their first car as an electric vehicle will also receive an additional 20% in subsidies. However, if a young person who previously owned an internal combustion vehicle switches to an electric vehicle, the first vehicle incentive does not apply.
Benefits for multiple children are also granted. An additional subsidy of 1 million won is provided for two children, 2 million won for three children, and 3 million won for families with four children or more.