(Seoul, Sejong = Yonhap News) Reporter Jang Ha-na and Kim Soo-hyun = Deputy Prime Minister and Minister of Finance and Economy Lee Hyung-il met with Hyundai Motor Group Chairman Chung Eui-sun and discussed ways to strengthen the competitiveness of electric vehicles.
According to the Ministry of Finance and Economy on the 2nd, Deputy Prime Minister Lee visited the Hyundai Motor Company and Kia Technology Research Center in Hwaseong, Gyeonggi Province, and held an industry meeting to strengthen the competitiveness of the electric vehicle industry.
Prior to the meeting, Deputy Prime Minister Lee met with Chairman Chung separately for about 20 minutes to discuss ways to develop the electric vehicle industry.
It is known that opinions were also exchanged at this meeting regarding ways to expand the domestic production tax credit for electric vehicles.
At the subsequent meeting, Deputy Prime Minister Lee reviewed the current status of the electric vehicle industry and autonomous vehicle technology development, and listened to the needs of government support.
However, Chairman Chung did not attend the meeting.
Deputy Prime Minister Lee personally confirmed the self-driving demonstration vehicles that will be deployed in the Gwangju self-driving demonstration city starting this month.
Entrepreneurs in the electric vehicle, autonomous vehicle, and parts industries requested support for electric vehicle production tax credits to help Korean companies survive in intensifying global competition.
Previously, in the tax reform plan announced in August, the government decided to establish a domestic production tax credit that reduces taxes based on domestic production, but excluded the electric vehicle industry from its application. There are loud voices in the industry calling for the expansion and introduction of domestic production tax credits.
In addition, the industry also suggested expanding support for the parts industry's transition to future cars and expanding professional manpower at organizations dedicated to autonomous vehicles.
The industry also requested the establishment of a legal basis for the introduction of a battery lease system. This system is designed so that consumers only purchase the car body, and the battery is owned and borrowed by a leasing company or financial company. This can have the effect of stimulating demand for electric vehicles by reducing the initial purchase cost of electric vehicles.
Deputy Prime Minister Lee said that the next battleground for a potential growth rate rebound is electric vehicles, and emphasized, "In order to survive, we must have technological capabilities at the level of global leading countries within the next two to three years, so rapid change and technological innovation for our companies are more urgent than ever."
He said, “Regarding support for electric vehicle production tax credits, the government will actively participate in the National Assembly discussion process and discuss in depth.”
In addition, he added, "Reflecting industry opinion, we will prepare and announce a plan to strengthen the competitiveness of the electric vehicle industry within this month, including improving autonomous driving technology and expanding research and development (R&D) on core components and technologies."
