Tesla Model 3 (Tesla)
The South Korean government said Sunday it plans to recalibrate its subsidy program for electric vehicles as almost half of the grants in the January-June period were for premium Tesla brands.
The Ministry of Environment is poised to revise the current calculation system for EV subsidies by October after discussions with municipalities, related experts and concerning associations. High-end EV brands are expected to be removed after consultations, as Tesla alone devoured 43 percent of total 209.2 billion won ($176 million) of subsidies in the first half of this year.
The ministry said it will hold a meeting on Monday with 11 automakers and sellers including Hyundai Motor and Kia Motors for discussions.
“For our ‘Green New Deal’ initiative to yield results, it’s crucial for EVs to be deployed without any setback. The ministry will consult and collaborate closely with related businesses and groups in the industry,” said Choi Jong-won, head of Air Quality Policy Bureau of the ministry.
The Green New Deal initiative is President Moon Jae-in’s green growth program launched last month to create jobs by nurturing the nation’s renewable energy sector.
By Kim Byung-wook (email@example.com