The government is again moving to introduce an "electric vehicle battery subscription," according to reports on the 16th. Battery costs account for more than 40% of an EV's price, and allowing consumers to use batteries by paying a subscription fee would let them buy electric vehicles for less than half the current price.
According to ChosunBiz's reporting, the Ministry of Trade, Industry and Resources and the Ministry of Land, Infrastructure and Transport decided to push to revise the Motor Vehicle Management Act to introduce an electric vehicle battery subscription. The Motor Vehicle Management Act stipulates that ownership of an EV battery must also rest with the vehicle owner. If this provision remains as is, a battery subscription cannot be introduced. Previously, when the government sought to introduce an EV battery registration system in 2022, the effort ultimately fell through after being blocked by this provision.
A government official said, "We are aiming to revise the Motor Vehicle Management Act within the first half of this year," and noted, "We will proceed through a member's bill." Once the law is revised, the government expects domestic EV consumption to rise sharply as the burden on consumers falls significantly.
According to the electric vehicle industry, the Ioniq 5 standard model sells for 47.4 million won, with the battery priced at around 20 million won. If a battery subscription is introduced and a buyer receives both the 4 million won in government subsidies and up to 4 million won in local government subsidies, the consumer could purchase the body of this model for 19.4 million won. The battery could be used by paying a monthly subscription fee set by the subscription period.