SEOUL, SOUTH KOREA, September 2, 2019 – As the supplementary budget for this year to reduce fine dust problem has been confirmed, the Seoul Metropolitan Government announced the plan to inject KRW 42 billion (USD 34.7 million) to expand additional 3,446 fleets of electric and hydrogen vehicles in the private sector. According to the plan, a total of 1,755 electric cars, 1,259 electric motorcycles, and 432 fuel cell electric vehicles will be supplied.
It is the second attempt to expand electric and hydrogen vehicles in the private sector. The first one was conducted last February. (6,022 ones have been expanded.) The plan aims at expanding eco-friendly vehicles up to 25,000 fleets by the end of this year by increasing financial support for the citizens who purchase environment-friendly cars.
As of July 2019, a total of 16,202 electric vehicles have been supplied (12,608 passenger cars, 46 buses, 38 cargo trucks, and 3,510 two-wheeled vehicles), while 146 fuel cell electric vehicles have hit the road. Currently, there are 27 types of electric cars manufactured from 11 motor companies; five types of trucks from five companies; 24 types of electric two-wheelers from 14 companies; and one fuel cell electric vehicle.
The city government’s financial subsidies will be provided differently by types of the car depending on the vehicle’s performance and the effects of improving the atmosphere. It will provide between KRW 12.06 million and KRW 13.5 million for electric vehicles; KRW 27 million for small-sized electric freight cars; KRW 2 million to KRW 2.3 million for electric motorcycles; and KRW 35 million for fuel cell electric vehicles.
The Seoul Metropolitan Government will additionally provide KRW 500,000 each to drivers who scrap their five-graded old cars that produce exhaust gas and purchase electric cars, and give up to KRW one million if they reside in green transportation zones. If they are persons of national merit, the disabled, or families with two more children, additional KRW 500,000 per person will be offered. And KRW 1.5 million will be given per shared vehicle that promotes the “sharing economy” through eco-friendly transportation. It will also provide an additional KRW 200,000 to those who change their internal-combustion two-wheeled cars into electric ones.
The demand for electric or hydrogen cars has been steadily increasing due to their higher economic feasibility along with various benefits such as tax reduction (up to KRW 5.3 million for electric vehicles, and KRW 6.6 million for fuel cell electric vehicles), a 50 percent discount for parking fees at public parking lots, and a 100 percent exemption for congestion charges at the Namsan Tunnel. A driver of an electric or hydrogen car is allowed to save KRW 600,000 annually than the one of a diesel car and between KRW 1.2 to 1.5 million than the one of a gasoline car.