South Korea to Introduce EV Subsidy Evaluation System Focusing on Domestic Supply Chains

SEJONG, May 13 (Yonhap) -- South Korea will newly implement an evaluation system to give out subsidies to electric vehicle (EV) manufacturers starting in July, with a focus on promoting contributions to domestic supply chains, the climate ministry said Wednesday. Under the 100-point scoring system, the Ministry of Climate, Energy and Environment will assess EV manufacturers' contributions to Korea's industrial supply chains, technology development capacity, response to environment-related policies, sustainability of aftercare services and safety management to determine whether the companies can receive state subsidies. Among the assessment criteria, supply chain contributions will account for the biggest portion of 40 points, followed by aftercare services at 20 points, safety management and response to environment-related policies at 15 points each, and technology development capacity at 10 points. EV manufacturers and importers must receive at least 60 points to be eligible for the subsidy program, the ministry said, explaining that the new standards have been devised to help create a sustainable EV ecosystem in South Korea and facilitate the distribution of "safe" and "high-quality" EVs. The ministry said it plans to update the assessment standards every year.