Jang Seob Yoon
Research expert covering South Korea
Electric vehicles in South Korea - statistics and facts
South Korea is steadily shifting toward electric mobility. Amidst concerns about the looming climate crisis, South Korean automakers and battery producers are working in hand with the government to accelerate the adoption of electric vehicles (EVs). As one of the leaders of the global automobile market, South Korea aims to increase the domestic market share of electric vehicles and supply 4.5 million units by 2030, with a focus on environmentally friendly vehicles. Domestic brand Hyundai Motor Company exports EV models to many countries and continues to work on its electric fleet alongside other South Korean car manufacturers.
Domestically manufactured green cars
The number of newly registered electric-powered vehicles in South Korea is steadily growing as the years pass. Out of all registered vehicles nationwide, more than 2.1 million units were environmentally friendly cars. Hyundai Motor Company started mass production of such green vehicles in 2009 and has already surpassed global cumulative sales of one million units. Hyundai’s Kona EV, first released in 2018, received the title of best-selling EV in the domestic market in 2019 and is now an established model in the market. Another popular South Korean EV model overseas is Kia Motor’s Niro EV, which is manufactured in South Korea and exported worldwide. The share of green cars in domestic car exports is projected to increase to 25 percent by 2030.South Korean electric vehicle battery producers
The battery is one of the most important parts of an EV. South Korea has been focusing on the EV battery business for quite some time. The country's lithium-ion battery export value has increased significantly in recent years as the EV market has grown. The leading South Korean battery manufacturers are LG Energy Solution, SK On, and Samsung SDI, with the three companies accounting for a significant portion of the global battery market. The sales revenue of all three companies are on an upward trend as the global market continues to adopt EVs. For example, Samsung SDI’s batteries are mainly shipped to German automakers Volkswagen and BMW, while SK On supplies its products to established brands such as Ford and Mercedes-Benz.How is the public perception of electric vehicles?
The public perception of environmental issues are another driver behind the transition to environmentally friendly automobiles. In particular, the particulate matter that pollutes South Korea's sky, also known as “yellow dust,” is a familiar topic of interest in discourse about the environment in the country. Results from a domestic survey found that a significant share of respondents were planning to purchase an EV in the near future. Additionally, results showed that the mileage at full charge was an important factor to consider when deciding on a purchase. In terms of price, South Korean consumers were generally willing to buy an electric car even if the price was higher than conventional cars. Nevertheless, financial support for EV purchases have continuously shown to be a major source of motivation for consumers regardless of age group.
