The government said on the 14th that it will expand electric vehicle subsidies by 20%, from 780 billion won this year to 936 billion won next year. The move aims to shift Korea's auto industry from a focus on internal combustion engine cars to electric and hydrogen vehicles.
On this day, Prime Minister Kim Min-seok presided over the first future car industry strategy dialogue and unveiled the K-mobility global leadership strategy. The strategy consists of four pillars: response to U.S. tariff, strengthening domestic production bases, securing Artificial Intelligence (AI) Autonomous Driving technology, and support for entry into overseas markets.
The government will expand subsidies for electric passenger vehicles by 20%, from 780 billion won this year to 936 billion won next year. The amount includes a newly established transition support payment of up to 1 million won for purchasing an electric vehicle after scrapping an old car. It will also launch a financing program for purchases of electric and hydrogen buses.
To convert 70% of internal combustion engine parts corporations into future vehicle corporations by 2030, the government will designate 200 future vehicle specialist corporations and promote industry green transition (GX) R&D. It will train 70,000 specialists in future vehicles by 2033 and launch an HTC (research to improve joint work efficiency among AI, robots, and humans) boot camp to enhance joint work efficiency among AI, robots, and humans. It will also provide more than 15 trillion won in policy finance to the auto industry.
In the AI Autonomous Driving field, with the goal of reaching U.S.-China levels of technology by 2030, the government will work with LG Electronics and Hyundai Mobis to develop software-defined vehicle (SDV) and AI-defined vehicle (AIDV) platforms. It will complete relevant laws and systems by 2026 and expand autonomous driving demonstrations to the city scale.
Focusing on seven countries with high growth potential, including Brazil, Saudi Arabia, and India, the government will support the development of export markets and create a 50 billion won future vehicle industry technology innovation fund. A government official said, "We will actively support strategic overseas expansion to overcome global protectionism and also prepare measures to promote domestic investment to pursue balanced growth."