Purchase subsidies for 136,000 electric and hydrogen cars this year… 26,000 units from last year↑

The government decided to give more benefits to eco-friendly cars than last year by increasing the budget to support the purchase of electric and hydrogen cars this year.

On the 8th, Deputy Prime Minister Hong Nam-ki and Minister of Strategy and Finance held an innovative growth BIG3 promotion meeting at the Seoul Government Building and announced that “the budget for electric and hydrogen car purchases will be increased by 32% to 1.4 trillion won.”

Through this, the government plans to provide purchase support benefits to a total of 136,000 electric and hydrogen vehicles this year. This is a 23.6% increase from last year (110,000 units). The government has decided to double the support for electric trucks, which have a large environmental impact, from 13,000 to 25,000 units.

In particular, the government expanded subsidies for small electric trucks from 512 million won to 6 million won to support small and medium-sized businesses and small business owners. In addition, as a pilot project, a subsidy of 200 million won for hydrogen trucks will be established and a fuel subsidy for hydrogen buses will be introduced. To this end, it is planning to promote legislation to establish the basis for the payment of fuel subsidies for hydrogen commercial vehicles next month.

In order to strengthen support for high-efficiency vehicles, the government raises the proportion of fuel consumption (efficiency per unit power) from 50% to 60% when calculating subsidies, and changes local subsidies from flat payments to differential payments depending on vehicle performance.

In order to reduce the price of non-polluting vehicles and foster low-end models, subsidies are not provided to electric and hydrogen vehicles of more than KRW 90 million. 100% of subsidies are provided to hydrogen and electric vehicles under 60 million won, and 50% of subsidies are provided to vehicles between 60 million and 90 million won. The unit price of subsidies for electric taxis will be increased from 8.2 million won to 10 million won.

At the meeting, a plan to support system semiconductors and medical devices was also discussed. Regarding system semiconductors, Deputy Prime Minister Hong said, “Small and medium-sized companies have expanded the four infrastructures, including design software in the fabless (semiconductor design) field, which is smaller and less competitive than Foundry, general-purpose semiconductor circuits (IP), prototype production, and design space. We will provide more opportunities for venture companies.

To this end, the government plans to expand the target of design software support throughout Pangyo, and strengthen domestic IP capabilities by establishing a global IP application program and establishing a database. In addition, it plans to increase support for multi-project wafer costs for prototype production from 1.5 billion won to 2.5 billion won, and promote the creation of a semiconductor innovation design center.

The government decided to invest in related industries by creating an additional venture fund worth 500 billion won this year to support ventures and start-ups in the big three sectors. Deputy Prime Minister Hong said, “We will focus on building an ecosystem for cooperation between global automobiles and startups, large pharmaceutical companies, hospitals and startups, and large and small companies. We will actively support the creation of infrastructure such as building a’Korean Rep Central’, a bio-specialized complex.” Said.

The Korean Rep Central is a bio-startup support organization that provides joint laboratories and research equipment to automakers.

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