[The Hwankyung Ilbo] Global automakers such as Hyundai Motor, Mercedes-Benz, and BMW have been announcing the launch of new cars since July, sparking a war on electric vehicles. However, there is a difference on whether the market can continue to grow. This is because it is unclear whether demand can continue even if subsidies are removed.

The Korea-EU Corporate ESG Cooperation Seminar, co-hosted by the EU-Korea Climate Action and the European Chamber of Commerce in Korea (ECCK), was held on the 6th under the theme of "Expected and Challenges to Expand Eco-friendly Mobility." Officials from the Ministry of Environment, the Korea Electric Vehicle Association, the European Commission, and automobile manufacturers attended the meeting.

Cho Young-wook, an official at the Ministry of Environment's Atmospheric Future Strategy Division, said, "We are discussing eco-friendly car subsidies with experts in various fields in consideration of changes in the market."

"We are going to select locations that are actually needed for chargers and establish them."  

It's all about charging stations: 

Ministry of Environment is planning to increase slow electric chargers to 500,000 by 2025. Considering that the number of slow chargers nationwide stood at 59,300 as of June this year, it is a scary speed. The organization will also supply 15,000 rapid chargers during the same period. In order to reduce inconvenience of charging, they are going to push for effective deployment that is different from before considering living and mobile base.

As the government announced plans to implement the Green New Deal earlier and stated that it will continue to provide subsidies for eco-friendly cars until 2025, subsidies will be gradually reduced. "We will continue to consult with related ministries to ensure that the subsidy is maintained until the point mentioned," Cho said. 

It is no exaggeration to say that South Korea's electric vehicle market has grown with subsidies. According to data from the Korea Electric Motor Association, up to 8.2 million won in state subsidies for eco-friendly vehicles (Central Government Support) were paid last year. It is far more than 3,000 pounds (4.6 million won) in the U.K., 22,500 yuan (3.85 million won) in China, and 400,000 yen (4.4 million won) in Japan.

Even charging infrastructure does not lag behind in terms of numbers. A total of 11.9 electric vehicles were counted in South Korea by the International Energy Agency (IEA) compared the number of electric vehicles per rapid charger in each country as of the end of 2019. On the other hand, 19.4 cars were found in Japan, 51.2 cars in Germany, and 67.4 cars in the U.S., which are higher than ours. France reached 81.8 units.

However, as most of them are concentrated in public facilities, consumers feel less comfortable. This is why charging stations need to be reduced.

Lee Min-ha, secretary-general of the Korea Electric Vehicle Association, said in a seminar that ▷ maintenance systems for the future car era ▷ other incentives for reducing subsidies for electric vehicles ▷ support for small and medium-sized companies. It is seen as a step in which subsidies should be reduced but other incentives should still exist.

It also emphasized that 'remanufacturing business for electric vehicles' needs to be established. Secretary-General Lee said, "Just as internal combustion engine vehicles are recycled or reused at junkyard, it is time to set laws and standards for electric vehicles." 

Problems of Changing Electric Vehicles and Industrial Ecosystems: 

At the meeting, where tasks to be solved in accelerating competition for hegemony of future cars were shared, automakers and the EU's response strategies were also introduced.

"Starting with carbon neutral production at the plant that mass-produces passenger models and vans in 2022, electric vehicles will account for 25% of all sales by 2025. Based on this, we are fully carbon neutral in 2039," said Kim Hong-joong, managing director of Mercedes-Benz Korea.

"The goal is to operate at least 30 million pollution-free cars and 80,000 low-pollution cars by 2035. We are further pushing to supply 3 million hydrogen charging stations by 2030 to achieve carbon neutrality by 2050," said Saki Gerasis, data official at the European Commission. He also stressed that "making concrete discussions and plans for practice requires considerable explosive and extensive efforts."