Korea weighs tax incentives for EVs as Chinese rivals gain ground

The government is weighing tax incentives for domestically produced electric vehicles in Korea as Chinese rivals gain market share. Deputy Prime Minister and Finance Minister Lee Hyoung-il said Monday that the government would join parliamentary discussions and announce measures to strengthen the EV industry this month. Lawmakers from both major parties have urged extending a production tax credit to EVs, with the National Assembly’s tax subcommittee expected to consider the issue this month.

Chinese-made passenger EVs accounted for 43.5 percent of new registrations in Korea from January to September, up 8.4 percentage points from a year earlier.

Registrations of Chinese-made passenger EVs more than doubled year-on-year to about 112,400 from 51,500.

The share of domestically produced passenger EVs fell 6.2 percentage points to 48.7 percent, below 50 percent for the first time.

Twenty-four bills proposing to include EVs and other future mobility vehicles in the production tax credit program have been introduced in the National Assembly.

Seven additional bills were submitted after the government unveiled its tax reform plan in August, and a possible floor vote is expected in December.

Published Nov 3, 2026 4:02 pm KST

Calls grow to include EVs in domestic production tax credit program

Finance Minister Lee Hyoung-il, center, speaks during a meeting with electric vehicle industry officials at Hyundai Motor's R&D center in Hwaseong, Gyeonggi Province, Monday. Courtesy of Ministry of Finance and Economy

Korea is weighing tax incentives for domestically produced electric vehicles (EVs) as Chinese rivals rapidly gain market share, fueling calls from automakers and lawmakers across party lines for government support to protect local production and jobs.

Deputy Prime Minister and Finance Minister Lee Hyoung-il said the government would announce measures to strengthen the EV industry's competitiveness this month, following talks with Hyundai Motor Group Executive Chair Chung Euisun on Monday.

Whether EVs should qualify for domestic production tax credits is expected to be a key focus of parliamentary debate over the government's tax reform plan.

Chinese-made passenger EVs accounted for 43.5 percent of new registrations in Korea from January to September, up 8.4 percentage points from a year earlier, according to the Korea Automobile and Mobility Association and the Korea Automobile Importers and Distributors Association. Registrations more than doubled to about 112,400 vehicles from 51,500 year-on-year.

Meanwhile, the share of domestically produced passenger EVs fell 6.2 percentage points to 48.7 percent, slipping below the 50 percent threshold for the first time.

Chinese automakers are stepping up their push into the Korean market, following BYD's entry last year and Zeekr's local sales launch this year.

Xpeng also appointed the first head of its new Korean unit on Tuesday, with former Volvo Car Korea executive Lee Man-sik set to take the post on Dec. 1. Chery Automobile and Great Wall Motor are also reportedly preparing to enter the market next year.

Hyundai Motor's IONIQ 6 electric sedan / Courtesy of Hyundai Motor

The competitive pressure has intensified demands to extend a domestic production tax credit to EVs.

The program, a key campaign pledge of President Lee Jae Myung, would provide tax credits based on production volumes to companies that manufacture and sell designated strategic products domestically. EVs were excluded from the government's tax reform proposal announced in August.

During parliamentary audits last month, lawmakers from both the ruling Democratic Party of Korea (DPK) and the main opposition People Power Party (PPP) urged the government to extend the tax credit to domestically produced EVs.

"The government stepped in to support our semiconductor industry when it was struggling. I believe we should provide support, including EV tax credits, to industries that are having difficulty competing with other countries and need a similar boost," Rep. Bae June-young of the PPP said during the audit.

Rep. Moon Jin-seog of the DPK also criticized the exclusion of EVs from the government's tax reform proposal, saying it appeared to be pushing domestic automakers "to the brink" as they compete with price-competitive Chinese manufacturers.

A total of 24 bills proposing to include EVs and other future mobility vehicles in the tax credit program have been introduced in the National Assembly. Seven more were submitted after the government unveiled its tax reform plan in August.

The issue is expected to be taken up by the National Assembly's tax subcommittee this month, ahead of a possible floor vote in December.

Meeting EV, autonomous-driving and parts industry executives on Monday, Lee signaled government engagement without committing to extending the credit.

“Regarding support through electric vehicle production tax credits, the government will actively participate in parliamentary discussions and engage in in-depth discussions on the matter,” he said.

He also said the government plans to announce a package of measures to strengthen the EV industry's competitiveness this month, incorporating industry feedback and support for autonomous driving technology and research and development of key components.

随着中国电动汽车市场份额的不断增长，韩国政府正在考虑为国产电动汽车提供税收优惠。韩国副总理兼财政部长李亨日周一表示，政府将参与国会讨论，并于本月宣布加强电动汽车产业的措施。两大政党的议员都呼吁将生产税收抵免政策扩展至电动汽车，预计国会税务小组委员会将于本月审议该议题。

今年1月至9月，中国制造的乘用电动汽车占韩国新注册车辆的43.5%，比上年同期增长8.4个百分点。

中国制造的乘用电动汽车注册量同比增长超过一倍，从 51,500 辆增至约 112,400 辆。

国产乘用电动汽车的份额下降了6.2个百分点，至48.7%，首次跌破50%。

国民议会已提出 24 项法案，提议将电动汽车和其他未来出行车辆纳入生产税收抵免计划。

政府在 8 月份公布税制改革方案后，又提交了 7 项法案，预计将于 12 月份进行全体投票表决。

发布于2026年11月3日下午4:02（韩国标准时间）

要求将电动汽车纳入国内生产税收抵免计划的呼声日益高涨。

周一，韩国财政部长李亨日（中）在京畿道华城市现代汽车研发中心与电动汽车行业官员举行会议并发表讲话。图片由韩国财政经济部提供。

随着中国竞争对手迅速抢占市场份额，韩国正在考虑对国产电动汽车（EV）提供税收优惠，这促使汽车制造商和各党派立法者呼吁政府提供支持，以保护本地生产和就业。

韩国副总理兼财政部长李亨日表示，政府将在本月宣布加强电动汽车行业竞争力的措施，此前他于周一与现代汽车集团执行主席郑义宣进行了会谈。

电动汽车是否应符合国内生产税收抵免条件，预计将成为议会就政府税收改革计划进行辩论的重点。

据韩国汽车与出行协会和韩国汽车进口商与经销商协会的数据显示，今年1月至9月，中国制造的乘用电动汽车占韩国新车注册量的43.5%，比上年同期增长8.4个百分点。注册量较上年同期增长超过一倍，从5.15万辆增至约11.24万辆。

与此同时，国产乘用电动汽车的份额下降了6.2个百分点，至48.7%，首次跌破50%的门槛。

继比亚迪去年进入韩国市场以及Zeekr今年在韩国推出销售之后，中国汽车制造商正在加大力度进军韩国市场。

小鹏汽车周二也任命了其新成立的韩国分公司的首任负责人，前沃尔沃汽车韩国公司高管李万植将于12月1日上任。据报道，奇瑞汽车和长城汽车也正准备明年进入韩国市场。

现代汽车IONIQ 6电动轿车 / 图片由现代汽车提供

竞争压力加剧了将国内生产税收抵免政策扩展到电动汽车的呼声。

该计划是李在明总统竞选时的重要承诺，将根据产量向在国内生产和销售指定战略产品的公司提供税收抵免。电动汽车被排除在政府8月份公布的税制改革方案之外。

上个月的国会审计期间，执政的韩国共同民主党（DPK）和主要反对党国民力量党（PPP）的议员都敦促政府将税收抵免扩大到国产电动汽车。

“政府曾在半导体产业陷入困境时出手相助。我认为，我们也应该为那些难以与其他国家竞争、需要类似扶持的产业提供支持，包括电动汽车税收抵免，”人民进步党议员裴俊英在审计期间表示。

朝鲜民主主义人民党议员文镇锡也批评政府的税改提案将电动汽车排除在外，称这似乎正在将国内汽车制造商推向“崩溃边缘”，因为它们要与价格具有竞争力的中国制造商竞争。

目前，已有24项法案提交国民议会，提议将电动汽车和其他未来出行工具纳入税收抵免计划。其中7项法案是在政府8月份公布税制改革方案后提交的。

预计国民议会税务小组委员会将于本月讨论该问题，并可能在12月进行全体投票表决。

周一，李显龙与电动汽车、自动驾驶和零部件行业的企业高管会面，他表示政府将参与其中，但并未承诺延长信贷期限。

“关于通过电动汽车生产税收抵免提供支持，政府将积极参与议会讨论，并就此事进行深入探讨，”他说。

他还表示，政府计划在本月宣布一揽子措施，以加强电动汽车行业的竞争力，其中包括采纳行业反馈意见，并支持自动驾驶技术以及关键部件的研发。