Some municipalities have received subsidies of up to several thousand from the Ministry of Environment as they raise their electric vehicle supply targets this year, but real subsidies from citizens are very low. On the other hand, some municipalities, which received fewer subsidies from the Ministry of Environment, are attracting citizens who apply for subsidies after purchasing electric cars. It is pointed out that the Ministry of Environment needs to pay subsidies flexibly in line with demand for electric cars by local governments.

According to the eco-friendly comprehensive information support system of the Korea Environment Corporation under the Ministry of Environment on April 11, Jeju Island plans to supply 3912 electric vehicles this year. It is the largest volume among the national municipalities. The subsidy application rate compared to the current allocation amount is about 10%, and it is estimated that only two digits of actual shipped vehicles are delivered.

The situation in Seoul and Daegu, which secured state subsidies to supply a lot of electric vehicles following Jeju Island, is also similar. These municipalities plan to supply 2254 cars and 1929 cars this year, respectively, and the actual number of vehicles received is 440 cars and 411 cars, respectively. The acceptance rates are 19% and 21%, respectively.

Jeju Island, Seoul City, Daegu City, and other local governments are targeting to supply 8095 electric cars. The Ministry of Environment plans to provide subsidies to 20,000 electric vehicles this year, which means that 40% of the government subsidies will be put into these three local governments. These three municipalities were able to secure subsidies from the MOE for thousands of cars because the municipal own electric car support budget was more than other municipalities. The Ministry of Environment receives the survey results of electric vehicle purchase demand from each local government every year, and then allocates the government subsidy to the budget level secured by each local government.

The city of Busan, on the other hand, originally requested the Ministry of Environment to supply 2,000 electric vehicles this year through a demand survey, but only 100 vehicles were allocated. An official from the city of Busan said, "Unlike the original plan, we had to lower the supply target by failing to secure the city`s budget."

As of April 11, Busan City received an application for subsidies for 110 electric cars. An official of Busan Metropolitan City said, "We plan to increase the number of electric cars further by securing additional budget this year." Chuncheon City, Gangwon Province, received a subsidy of 30 electric cars from the Ministry of Environment this year. Some 10 cities, some of which have been allocated subsidies for two-digit electric cars this year, such as Asan, Gyeryong, Jeonbuk Namwon and Jeonnam Yeosu, have already attracted more than the quota.

Even if the local governments lacking state subsidies secure their own budgets, it is unclear whether they can receive further subsidies from the Ministry of Environment. The industry expects the Ministry of Environment to exceed the target of supplying electric cars, 20,000 units, to attract 30,000 to 40,000 electric vehicles. This year, Hyundai Motors `Kona Electric and Kia Motors` NILO EVs are charging up to 400km of electric vehicles.

The Ministry of Environment is also considering a plan to increase government subsidies by adding additional budget, but it is unforeseeable that the budget authorities will accept it. Last year, the Ministry of Environment requested the Ministry of Strategy and Finance to subsidize 30,000 electric cars this year, but it was allocated 20,000 units, or 240 billion won, less than 10,000 units.

As a result, some local governments have pointed out that the Ministry of Environment needs to operate the state subsidy payment system flexibly in order to eliminate the unequal situation in which some subsidies are not available properly and some local governments have subsidies in some localities . For example, in Jeollanam-do, Yeosu can receive a subsidy of up to 23 million won, but Gangjin and Sinan are only receiving up to 16.4 million won.

An industry expert said, "It is not necessary to allocate the electric vehicle supply target and the state subsidy on an annual basis. Instead, it is necessary to subdivide the subsidy by half or quarter."

By Kim Yang Hyuk mj@


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