Seoul, Jan 15
South Korea's industry ministry said on Wednesday the government will spend 1.5 trillion won ($1.02 billion) this year to induce consumers to purchase electric vehicles (EVs).
The move is aimed at revitalising domestic demand for EVs amid sluggish sales driven by safety concerns and a lack of access to charging stations, according to the Ministry of Trade, Industry and Energy.
The accumulated number of EVs and hydrogen fuel cell cars stood at 720,000 as of end-2024, with EVs accounting for 680,000, reports news agency.
Domestic EV sales dropped 9.7 per cent on-year to 147,000 in 2024, marking a decline for the second consecutive year.
Some consumers have expressed concerns about EV safety following a massive fire caused by a Mercedes-Benz EV in August, which damaged over 100 vehicles and destroyed an underground apartment parking garage in Incheon, west of Seoul.
"The government will seek to ease the financial burden on consumers for eco-friendly cars and enhance their trust," the ministry said.