South Korea to offer sales incentives ahead of EV Launch

The South Korean government is looking at implementing a range of tax reductions ahead of the market launch of electric vehicles (EVs) in late 2010 or early next year. With this move, the government is hoping that South Korea can achieve a strong position in the global EV market, targeting an overall share of 10% in this segment by the end of 2015. Following a meeting of the presidential “green” growth committee under President Lee Myung-bak, the South Korean government and the Ministry of Strategy and Finance are considering offering a range of measures designed to stimulate local demand for electric vehicles, as well as support for research and development. As part of its plan, the government could temporarily reduce consumption, registration and acquisition taxes on newly purchased EVs by up to 3 million won (US$2,612.15). (February 18, 2010)