Seoul, Jan 15 (NationPress) The industry ministry of South Korea announced on Wednesday that the government will allocate 1.5 trillion won (approximately $1.02 billion) this year to encourage consumers to buy electric vehicles (EVs).

This initiative is designed to stimulate local demand for EVs, which has been impacted by safety worries and inadequate access to charging facilities, as stated by the Ministry of Trade, Industry, and Energy.

As of the end of 2024, the total number of EVs and hydrogen fuel cell vehicles reached 720,000, with electric vehicles making up 680,000, according to reports from Yonhap news agency.

In 2024, domestic sales of EVs fell by 9.7 percent year-over-year, totaling 147,000, marking a decline for the second consecutive year.

Concerns regarding the safety of EVs have arisen among some buyers, particularly following a significant fire involving a Mercedes-Benz EV in August, which resulted in damage to over 100 vehicles and the destruction of an underground parking garage in Incheon, west of Seoul.

The ministry stated, “The government will aim to reduce the financial strain on consumers for eco-friendly vehicles and build their confidence.”

Commencing this month, young individuals purchasing an EV as their first car will benefit from an extra 20 percent discount.

Families with two children will qualify for a 1 million won (around $685) discount, while those with three or four children will receive discounts of 2 million won and 3 million won, respectively.

Additionally, South Korea will provide discounts on highway tolls for EVs until 2027.

The government also intends to ensure that electric vehicles represent at least 10 percent of the vehicles used for testing at driver’s license testing centers by the end of 2025.

This year, the government will invest 375.8 billion won to establish 4,400 fast-charging stations nationwide and develop strategies to encourage supermarkets and theaters to install chargers suitable for customers who stay for two to three hours.