Energy Economy

08 Jan 2021

S. Korea to Jack up Support for Electric, Hydrogen Cars

08 Jan 2021  by Yonhap   

South Korea plans to increase budgetary support for the purchase of electric and hydrogen cars by around 30 percent this year in a bid to nurture the next-generation vehicle sector, the finance minister said Friday.

The country has set the non-memory chip, bio-health and next-generation vehicle sectors as the "BIG 3" industries that it seeks to nurture for job creation and innovation-driven growth.

As part of such efforts, the country will spend 1.4 trillion won ($1.3 billion) to support the purchase of electric vehicles (EVs) and hydrogen-powered cars this year, up 32 percent from a year earlier, according to Finance Minister Hong Nam-ki.

The country will double its support for electric trucks, which will have a bigger impact on easing environmental pollution. In a pilot project, the country also plans to create subsidies for using hydrogen trucks and introduce fuel grants for hydrogen buses.

"This year is a very important time for the three industries to help increase domestic demand, create jobs and take the lead in the global market," Hong said at a meeting on the fostering of the BIG 3 segments.

The government plans to support smaller firms and venture companies in the fabless sector, and encourage local hospitals to use more indigenously developed medical devices.

"The government will additionally create a 500 billion won venture fund to invest in the BIG 3 industries in the third quarter," Hong noted.

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