Chinese, European EV brands intensify competition in Korea

Korean EV makers are facing increased competition as Chinese and European brands expand in the local market amid a rise in government subsidies.

The Korean government will allocate 936 billion won (US$634 million) for EV subsidies in 2026, a 20% rise from the previous year.

Chinese automaker BYD has become Korea’s fourth-largest imported EV brand by sales, reaching 3,791 units from January to October 2025, behind Tesla, BMW, and Audi.

Zeekr, part of China’s Geely Group, will begin selling EVs in Korea in Q1 2026 after completing legal procedures.

Another Chinese brand, Xpeng, plans to start sales in Korea in 2026 after establishing its local unit in June.

European makers are also expanding, with Mercedes-Benz Korea launching two new EV models next year, Porsche Korea introducing the electric Cayenne SUV, and Volvo Car Korea planning to release the EX90 SUV and ES90 sedan by mid-2026.

Local firms, including Hyundai’s Genesis, will launch new models in response.

🔗 Source: The Korea Times

🧠 Food for thought

Implications, context, and why it matters.

South Korea’s subsidy rules will decide if Chinese EVs disrupt the market

Chinese EVs may not get full support under the 2025 reform with rules that reward longer range, quicker charging, and safety features like abnormal detection systems 1. Cuts deepen for models under 440 km 1.
Automakers must carry product liability insurance (covers damages from product defects) and share state of charge (the battery’s percentage level) or lose all aid 1. BYD sold 3,791 units in Jan–Oct 2025, but 2026 could shift if the price cap drops from KRW 55 million to KRW 53 million or makers miss these rules 1.
Trade-in bonuses of up to KRW 1 million for scrapping old cars may favor established brands with stronger dealer networks for processing trade-ins 2.

Charging infrastructure providers can benefit from Korea’s faster buildout

KRW 936 billion in subsidies after a 20% boost 3 plus a wave of foreign EV launches could push cities and utilities to speed up charger rollouts before 2026–2028 demand spikes, creating bids for equipment and services.
Hardware and software firms should chase Request for Proposals (RFPs) for direct current (DC) fast chargers, payment systems, network management software through public procurement channels 1. Grants exist 1. The 2025 reform rewards 150 kW+ fast charging for electric trucks 1.
2030 goals such as five-minute charging signal multi-year build windows beyond 2026, with roaming partnerships (agreements that let drivers use multiple charging networks with one account and payment method) likely to grow as the network matures 4.