South Korea excludes BYD from EV subsidy scheme

South Korea has tightened the requirements for government subsidies for electric vehicles. In the future, only manufacturers and importers who pass a new assessment by the Ministry of Environment will have access to the subsidy program. In the electric passenger car category, ten companies met the requirements. BYD was the only major BEV manufacturer that failed to qualify.

South Korea’s Ministry of Environment, Climate and Energy has introduced a new evaluation system for electric vehicle manufacturers and importers. The assessment examined areas including technological capabilities, contributions to the supply chain, compliance with environmental regulations, the sustainability of after-sales services and safety management.

Manufacturers were required to achieve at least 60 out of 100 points to remain eligible for the government’s electric vehicle subsidy programme. According to reports by the Korea JoongAng Daily and other media outlets, BYD was the only battery-electric vehicle manufacturer that failed to meet the required threshold.

A total of 35 manufacturers and importers took part in the evaluation. Of these, 27 qualified for the government subsidy programme, including ten providers of electric passenger cars, nine manufacturers of electric commercial vehicles and eight suppliers of electric minibuses.

In the passenger car segment, BYD was the only manufacturer that failed to qualify. In addition, seven manufacturers of electric trucks and vans did not meet the requirements.

The approved passenger car manufacturers and importers include Hyundai Motor Company, Kia Corporation, Renault Korea, Tesla Korea, BMW Korea, Mercedes-Benz Korea, Volkswagen Group Korea, Volvo Cars Korea, KG Mobility and Polestar Automotive Korea.

For BYD, this means that vehicles submitted for subsidies from 1 July onwards will no longer be eligible. However, applications submitted by 30 June will still be processed and may receive subsidies under a transitional arrangement.

The new evaluation system forms part of a broader overhaul of South Korea’s electric vehicle subsidy policy. Unlike in the past, eligibility for subsidies is no longer determined solely by vehicle technology and performance. The assessment now also takes into account factors such as contributions to the domestic automotive industry, investments in research and development, the availability of service networks and safety management standards.

The government says the revised framework is intended to direct public funding more strategically towards companies that contribute to the development of South Korea’s domestic e-mobility ecosystem. Seoul had already announced plans in the spring to revise the subsidy criteria for electric cars and other electric vehicles along these lines.

chosun.com, mcee.go.kr