South Korea’s Ministry of Environment is expected to announce next week which automakers and importers qualify for electric vehicle (EV) subsidies under revised rules that take effect in July.

To qualify, companies must score at least 60 out of 100.

The ministry’s 100-point framework gives 40 points for supply-chain contributions, 20 for after-sales services, 15 for safety management, 15 for responses to environment-related policies, and 10 for technology development capacity.

The change marks a shift from a system that based subsidies primarily on driving range, efficiency, and price.

Under the previous framework, subsidies were up to 5.8 million won (US$3,800) for midsize and large EVs, and 5.3 million won (US$3,400) for small models.

The market impact could be significant because imported EVs accounted for 42.8% of South Korea’s EV market last year.

Tesla alone sold about 60,000 vehicles in the country.

The changes could also raise trade concerns.

The World Trade Organization classifies subsidies tied to the use of domestic goods over imported goods as prohibited subsidies.

🔗 Source: The Chosun Daily