SEOUL, SOUTH KOREA, February 12, 2020 — As of the end of last year, the Seoul Metropolitan Government had supplied around 20,000 electric vehicles during the 2009-2019 period, and this year it plans to provide 10,000 ones. To encourage citizens and companies to join the city’s effort, it will offer subsidies and receive applications. The plan is aimed at reducing fine dust and greenhouse gases by popularizing eco-friendly cars.
As there have been growing interest and demand in eco-friendly cars, the cumulative number of registered electric and hydrogen vehicles as of the end of 2019 increased by 56.34 percent and 613.1 percent, respectively. On the contrary, diesel and LPG cars decreased by 2.25 percent and 4.34 percent, respectively.
< Vehicle registered in Seoul >
(Unit: number of cars)
|Category||Electric Car||Hydrogen Car||Diesel Car||LPG Car|
|Increase Rate (%)||56.34%||613.10%||-2.25%||-4.34%|
※ Source: Statistics, Ministry of Land, Infrastructure, and Transport
The number of electric vehicles (10,000 cars) to be supplied this year is about 50 percent of that of the ones provided between 2009 and 2019 (20,083 cars). They will include 5,805 passenger cars, 1,600 freight cars (600 small-size ones, 1,000 ultra-small ones), 1,775 two-wheelers, 700 taxis and 120 buses.
Among them, 8,909 eco-friendly cars will be provided by the Seoul Metropolitan Government to the private sector (5,632 passenger cars, 587 small freight cars, 1,000 ultra-small freight cars and 1,690 two-wheel vehicles). The city government plans to spend 142.3 billion won (US$ 120 million) for this program through the Ministry of Environment’s integrated portal for electric vehicles (www.ev.or.kr) starting from February 17, 2020.
Currently, available electric cars are 25 types of passenger cars manufactured by 10 motor companies, nine types of freight cars by seven companied and 26 types of two-wheelers by 14 companies. More detailed information on them, you may visit the Seoul Metropolitan Government website (http://www.seoul.go.kr) and see the public announcement.
The subsidy varies depending on the vehicle’s performance (fuel efficiency and mileage) and its air environment improvement effects. Passenger cars can be offered between 10.55 million won and 12.7 million won, 27 million won for small cargo cars and 1.5 million won to 2.1 million won for subcompact two-wheel cars.
In addition to the purchase subsidy, the Seoul Metropolitan Government plans to increase the additional subsidy to 700,000 won from last year’s 500,000 won when the one scraps an old 5-grade vehicle and alternatively purchases an electric vehicle.
Electric cars have been steadily increasing in demand because they can reduce fuel costs and get various benefits, such as tax cuts of up to 5.3 million won, a 50 percent discount in parking fees at public parking lots and a 100 percent exemption from congestion fees at Namsan Tunnel.
When buying electric cars, the one can receive up to 5.3 million won in tax benefits, including 3 million won in special consumption tax, 900,000 won in local education tax and 1.4 million won in acquisition tax. Besides, non-business individuals can receive a tax cut of 130,000 won a year. Electric cars can save between 600,000 won and 800,000 won annually in fuel costs more than diesel cars do, or 1.2 million to 1.5 million won than gasoline cars do.