KAMA President Chung Dae-jin said, "We should give preferential treatment to the domestic electric vehicle industry in line with global trends."

*This content was translated by AI.

On the 9th, the Korea Automobile Mobility Industry Association (Chairman Chung Dae-jin, hereinafter referred to as the 'Affiliation') held the 45th Automobile Mobility Industry Development Forum at the Automobile Hall in Seocho-gu, Seoul under the theme of "The Role of Local Governments to Achieve Electric Vehicle Supply Goals." Hyundai Motor Vice President Lee Hang-soo, head of the Korea Institute of Industrial Economics and Trade Kim Kyung-yu, and Heo Se-jin, a member of the Korea Productivity Headquarters, participated in the meeting.

Chung Dae-jin, president of the association, explained his belief in Korea's policy direction as well as the global trend toward increasing and decreasing subsidies for electric vehicles. He said, "Countries related to electric vehicle subsidies are preparing tables on various places that create demand for electric vehicles produced domestically related to electric vehicles. The EU's Industrial Accelerator Act (IAA) also announced preferential electric vehicle subsidies for electric vehicles finally assembled in the region. Similarly, Japan conducted an evaluation of electric vehicle operators when implementing the electric vehicle subsidy policy, and turned to a policy of preferential treatment for domestic electric vehicle production in Japan," he said.

In addition, Chung, president of the association, said, "Countries are working to realize the two goals of 'supply of eco-friendly vehicles' and 'strengthening domestic electric vehicle production capacity' for electric vehicles at the same time. Our country should go just like any other country. Therefore, government officials should also refer to it when designing policies. In addition to purchase subsidies, there should be several preferential treatment in production. Japan is doing it too... I understand that the government is reviewing in-depth tax materials that promote electric vehicle production. When designing this policy, I think Korea must also be included in this policy," he said.

The association predicted that the current situation in the Middle East and high oil prices will continue for a considerable period of time. As a result, they analyzed that demand for electric vehicles is an "explosive situation," adding that subsidies should be provided more in a timely manner. The association explained, "The domestic electric vehicle market has been recovering since the Casm phase in '23~'24, and '25-year supply has increased 50.1% year-on-year to 220,000 units, and sales from January to March 26 also increased 150.9% year-on-year to 83,000 units."

In particular, Huh Se-jin, a senior expert at the Korea Productivity Headquarters, explained that the higher the local subsidy, the higher the proportion of domestic electric vehicle sales. In addition, he added that lower subsidies for local electric vehicles tend to increase the proportion of electric vehicle purchases for imported vehicles. From the perspective of imported cars, this sector will feel like an entry barrier, but from the standpoint of fostering the country's electric vehicle industry, electric vehicle subsidies should be designed to fit the policy direction.

Heo also said, "The Ministry of Climate and the Ministry of Commerce and Industry receive the same criticism at the National Assembly every year. The opinion is, 'Why not protect the domestic industry with this large amount of subsidies?' Electric vehicle subsidies will gradually decrease in the future, but if data show that higher local subsidies tend to sell more domestic cars and less imported cars, measures to increase domestic car competitiveness should be devised in a hurry.He added.

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*This content was translated by AI.