South Korea has introduced a stricter approval process for its electric vehicle subsidy programme, requiring manufacturers and importers to pass a comprehensive government assessment before their vehicles can qualify for purchase incentives. Under the new framework, BYD became the only major battery-electric passenger vehicle manufacturer that failed to secure approval, according to the Korea JoongAng Daily.
New Evaluation Expands Beyond Vehicle Performance
The Ministry of Environment, Climate and Energy assessed manufacturers using a broader set of criteria than in previous years. In addition to vehicle technology, the evaluation examined each company’s technological capabilities, contributions to the domestic supply chain, compliance with environmental regulations, after-sales service network, and safety management practices.
Manufacturers were required to achieve at least 60 out of 100 points to remain eligible for the government’s electric vehicle subsidy programme.
BYD Fails to Meet Qualification Threshold
Of the 35 manufacturers and importers that participated in the assessment, 27 qualified for government incentives. BYD was the only major passenger electric vehicle manufacturer that did not reach the required score, while several manufacturers of electric commercial vehicles also failed to qualify.
The approved passenger vehicle manufacturers 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.
As a result, BYD vehicles submitted for subsidies from 1 July onward will no longer be eligible for government incentives. Applications submitted by 30 June will continue to be processed under transitional arrangements.
Government Aims to Strengthen Domestic EV Industry
The revised subsidy framework forms part of South Korea’s broader strategy to direct public funding toward manufacturers that contribute to the country’s long-term electric vehicle ecosystem.
Rather than evaluating vehicles solely on performance and efficiency, the government now also considers investment in research and development, support for local industry, service infrastructure and corporate safety standards when determining subsidy eligibility.
Officials said the updated policy is designed to encourage greater investment in South Korea’s automotive sector while strengthening the competitiveness and sustainability of the country’s electric mobility industry.
