The Korea Herald


S. Korea to proactively cope with France's new EV subsidy policy: ministry

By Yonhap

Published : Aug. 9, 2023 - 10:01

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A port for vehicle exports (Yonhap) A port for vehicle exports (Yonhap)

South Korea's industry ministry said Wednesday it will proactively cope with France's new subsidy policy for electric vehicles, amid concerns the move may weigh down automobile exports.

The move came as France plans to apply a score system that tracks the carbon footprint of the manufacturing process of EVs, which is set to be implemented in January 2024, followed by a six-month grace period, according to the Ministry of Trade, Industry and Energy.

France plans to receive opinions on the policy through Aug. 25.

Under the system, the French government will offer subsidies for EVs meeting the required environmental score while excluding vehicles with a substantial carbon footprint from the benefits.

"Currently, we are closely analyzing the policy's impact on South Korean companies with related parties. Based on the assessment, we plan to submit the government's stance to France," the ministry said in a statement.

South Korea stands as the fifth-largest player in the French EV market, with Hyundai Motor Co. and its smaller affiliate Kia Corp. selling a combined 16,570 units last year.

"We plan to continue communicating with the French government closely to reflect our opinion on the final version of the scheme," the ministry added. (Yonhap)