South Korea invests $66 billion in the manufacture of electric vehicles; their production will grow more than 10 times by 2030

South Korea invests $66 billion in the manufacture of electric vehicles; their production will grow

The South Korean authorities intend to accelerate the production of electric vehicles in order to double the share of local company models in the world market to 12% by 2030, and the country intends to become one of the world's leading producers of such transport.

The local Ministry of Trade, Industry and Energy has said that, in order to develop the industry, the authorities are promising tax incentives and a variety of support measures to encourage investment by local auto manufacturers, with a total investment of $66.03 billion by 2026.

The comprehensive road map has already been announced by the Ministry at a meeting in which, in addition to the authorities, numerous companies, including Hyundai Motor, Kia, GM Korea and one of the largest wireless operators in the country, KT, participated. According to the plan, by 2030, South Korean car manufacturers were expected to increase the production of electric vehicles to 3.3 million copies — an estimated 254,000 electric vehicles or about 5% of the market last year.

To achieve this goal, by 2026, manufacturers had promised to develop key software for electric vehicles using their own resources and to train 30,000 people to work in the industry, and according to the Ministry, about 300 companies were required to develop software for electric vehicles by 2030.

The country also intends to produce processors, sensors and other important components in order to double the share in the relevant market segment to 6.6% by 2030. The plans also include the development of highly competitive electrical and hydrogen machines. To ensure a "fast but smooth transition" of the industry, the Government has pledged to support producers to diversify their portfolio. In addition, the authorities will engage in intensive monitoring of supply and demand for key components imported from abroad and will use their own reserves to compensate for possible disruptions in their supply.

One of the priorities will be the development of autonomous driving technologies; in the country, it intends to support the development of related components through the establishment of research complexes to stimulate their commercial production in Korea since 2024; finally, the authorities intend to significantly reduce the regulation of the industry in order to make it easier for new service models and technologies to enter the market; consultations with car manufacturers to develop detailed plans will continue.