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  • Seoul to Supply 12,000 Electric Vehicles in 2021, Totaling Over 40,000

  • Environment & Energy news SMG 1087

    green energy

    The Seoul Metropolitan Government (SMG) announced that it will supply 11,779 eco-friendly electric vehicles in 2021, the largest annual scale so far. It amounts to 40% of the accumulated supply (31,029) in the last 12 years (2009–2020). The number of electric vehicles in Seoul will be over 40,000 following the addition of 11,779 vehicles to the total of 31,029 vehicles as of 2020.

    Starting in 2021, all public vehicles of municipal and district institutions will be eco-friendly, and 295 vehicles will be supplied. The SMG will increase the supply of motorcycles (2x) and trucks (1.5x) in consideration of the rise in delivery demands due to COVID-19. In particular, more than 10% of the supply of electric trucks will be for SME operations to support SMEs facing difficulties due to COVID-19. As for personal electric vehicles, financial assistance will be provided according to the price of vehicles. High-price vehicles that cost more than KRW 90 million will be excluded from assistance while financial assistance for vehicles that cost less than KRW 60 million will be maximized, improving the actual effect of assistance for citizens in need.

    First, for electric vehicles, financial assistance will be provided differently according to the price in 2021. Financial assistance (government/municipal expenditure: up to KRW 12 million) will be provided entirely for vehicles that cost less than KRW 60 million, and half for vehicles that cost around KRW 60–90 million. Vehicles that cost more than KRW 90 million will be excluded from assistance. In addition, 40% of the supply for electric vehicles are separately allocated according to the guidelines of the Ministry of Environment to support the voluntary conversion to eco-friendly vehicles by private corporations and institutions.

    Second, for electric trucks, the maximum number to be bought by corporations will be 10 in order to prevent the monopoly of some corporations and expand the chance of purchasing by individuals.

    Third, for electric motorcycles and large electric buses, the rate of self-pay of the buyer will be high in order to prevent hoarding and backdoor deals. For electric motorcycles, buyers must now pay 40–50% of the assistance funds. Buyers of large electric buses must pay at least KRW 100 million for the price of the vehicles.

    Fourth, starting this year, it is mandatory to introduce electric/hydrogen vehicles when purchasing or renting new business vehicles at affiliated organizations of the SMG. Last year, the SMG amended its ordinance so that public institutions with less than five vehicles are required to buy eco-friendly vehicles for new purchases, expanding the target of mandatory purchasing of eco-friendly vehicles by public institutions.

    Moreover, the SMG has prepared various support measures, such as supporting KRW 700,000 plus the financial assistance when a person scraps a 5-level emission vehicle and buys an electric vehicle for the improvement of air quality.

    The financial assistance will be different according to the types of vehicles, considering their functions (i.e. fuel efficiency, mileage) and the effect of improving air quality. Financial assistance will be sent from the SMG to the manufacturer/importer of the vehicles. Thus, the buyer only needs to pay the rest amount of the money excluding the amount of financial assistance to the manufacturer/importer.

    The SMG’s policy to expand the number of electric vehicles and the high attention of citizens led to the increase of accumulated registered electric vehicles by 56.5% as of the end of 2020 compared to the same period of the previous year. In contrast, the numbers of diesel and LPG vehicles decreased by 1.2% and 5%, respectively. If you want real-time information about the operation of electric vehicles, including nationwide charging stations and their status, visit the Korea Environment Corporation website (www.ev.or.kr).