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South Korea Electric Vehicles EV Market

South Korea’s rapidly growing electric vehicle (EV) market—set to reach 20% of total vehicle sales by the end of 2025—presents valuable opportunities for U.S. firms in EV manufacturing, battery technology, charging infrastructure, and advanced safety systems. With over $448 million allocated for charging infrastructure and new government safety and performance regulations, Korea offers both a dynamic consumer market and a forward-looking policy environment aligned with U.S. expertise in clean tech and mobility innovation. Firms seeking export or partnership growth in Asia should pay close attention to Korea’s evolving standards and rising demand.

The EV and EV charging infrastructure market in South Korea is accelerating rapidly, with an annual growth rate of 19% from 2020 to 2024. In 2025, Korea produced 407,009 EVs, accounting for 11% of total automobile production, indicating a significant shift in the country’s automotive landscape. EV statistics include battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell electric vehicles (FCEVs). The market share of EVs is projected to reach 20% of total vehicle sales by the end of 2025 and this growth is largely driven by government policies aimed at achieving carbon neutrality, including the expansion of charging infrastructure, tax incentives, purchase subsidies, and technological advancements. The Korean government has committed to achieving net zero emission by 2050, with a strong focus on transitioning to zero-emission vehicles.

In 2025, Korea is implementing several key changes to its EV standards and EV subsidy rules. These include:

  • New EV Battery Certification System (effective Feb. 17): Replaces self-certification with a government-led system under the Automobile Management Act to improve safety amid public concerns over battery fires.
  • Mandatory Safety Labeling and Stricter Performance Testing are now required for all EV batteries.
  • Revised Subsidy Rules:
    o    The maximum EV purchase subsidy has been reduced to $3,950, a decrease of more than 10% from the previous year, placing pressure on manufacturers to reduce production costs.
    o    Only EVs that transmit real-time battery state-of-charge data to charging stations will be eligible for subsidies—addressing risks related to overcharging.

Additionally, the government budget for installing EV charging facilities has increased by 43% compared to 2024, totaling USD448 million. Priority support will be given to the installation of fast chargers provided in densely populated urban areas with high demand for fast charging facilities.

Market Opportunities for U.S. Companies 

Korea’s EV market presents business opportunities for investment, manufacturing innovation, advanced battery technology, charging and refueling infrastructure, and electric commercial vehicles. The rising consumer preference toward sustainable mobility coupled with the Korean government’s reforms will foster technological advancement, enhance safety, and improve consumer access to EVs. Major trade shows, such as InterBattery and EV Trend Korea, also serve as key platforms for discovering the latest trends and technologies in Korea’s rapidly growing EV market.

For more information contact the U.S. Commercial Service in South Korea, email Office.Seoul@trade.gov