The Korean government will increase this year’s budget for state subsidies to promote purchasing of electric vehicles and hydrogen-powered cars by 32 percent.

The Ministry of Strategy and Finance said on Friday 1.4 trillion won ($1.27 billion) is allocated this year to subsidize consumer purchasing of some 136,000 eco-friendly cars, up by 26,000 units from last year.

The number of EV trucks to be subsidized will double from 13,000 units to 25,000 units.

The government will also differentiate subsidy levels by car price as those retailed between 60 million won and 90 million won will receive only a 50 percent subsidy and expensive cars like Tesla models priced over 90 million won will receive no subsidy.

Subsidies for compact EV trucks will be raised from 5,120,000 won to 6 million won to help small vendors and businesses. Subsidies for electric taxis will also be up from 8.2 million won to up to 10 million won.

By Pulse

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