Policy Overview

Several policy measures to transition the road transport sector are currently under consideration in South Korea. In December 2021, President Moon Jae-in's government announced the Korea Zero Emissions Vehicles (ZEV) Dissemination policy, which includes provisions such as subsidies for ZEVs, charging infrastructure for ZEVs, and a gradual increase in production targets for ZEVs over internal combusition engine (ICE) vehicles.

During his election campaign in early 2022, the current President Yoon Suk-yeol pledged to set a target to phase out ICE vehicles by 2035. In June 2022, President Yoon’s government announced a policy agenda which confirmed a 2035 target for “ZEV vehicle transition” but did not explicitly commit to a date for phasing out ICE vehicles. In addition, the agenda included plans to subsidise charging costs for ZEVs, and tighten GHG emissions standards for small vehicles. In July 2022, the Ministry of Environment announced a target for supplying 2 million ZEVs within President Yoon’s term.

Evidence Profile

7102292

Key

opposing not supporting mixed/unclear
supporting strongly supporting

Policy Engagement Overview

The aggregated evidence of corporate and industry engagement with the electrification of transport and the phase-out of internal combustion engine (ICE) vehicles shows active and negative engagement from the automotive and petroleum industry associations, while cross-sector industry associations have taken broadly supporting positions.

Policy Engagement Trends

The automotive and petroleum industry associations are the most actively engaged with ZEV policy in Korea, and appear to broadly oppose policy measures for decarbonizing the road transport sector. Associations such as the Korea Automobile Manufacturers Association (KAMA) directly opposed the government’s ZEV policy and supports the continued role for ICE vehicles. The Korea Petroleum Association (KPA) also opposed the electrification of transport and regulations to phase out ICE vehicles.

South Korea’s major cross-sector industry associations have broadly supported the electrification of road transport, although they have not commented on the need for regulation to phase out ICE vehicles. The Korea Chamber of Commerce and Industry (KCCI) supported the expansion of electric and hydrogen vehicles, and requested government subsidies and support for Electric Vehicles (EV) charging infrastructure. The Federation of Korean Industries has also advocated for the government to provide policy support for South Korean automakers to produce EVs domestically and abroad.

South Korea’s largest automaker, Hyundai Motor, has remained largely silent on ZEV policy in South Korea, despite actively engaging in regulations in the United States and the European Union.

Evidence Profile

7102292

Key

opposing not supporting mixed/unclear
supporting strongly supporting

Live Lobbying Alerts

Korea Automobile Manufacturers Association opposes ICE vehicle regulation

29 September 2022

On April 5th, The Hankyoreh reported that Korea Automobile Manufacturers Association (KAMA) Chairman Jung Man-ki appeared to oppose the regulation of internal combustion engine (ICE) vehicle production, instead calling for more incentive-oriented government policies such as investments in electric vehicle charging infrastructure.

Korea Automobile Manufacturers Association supported the supply expansion of zero-emissions vehicles to meet 2030 GHG target

10 March 2023

In a 2nd March press release, the Chairman of the Korea Automobile Manufacturers (KAMA) supported expanding the supply of electric and hydrogen vehicles to achieve the 2030 NDC GHG emissions reduction target in the transportation sector of South Korea, calling for policy measures and investment support from the South Korean government.

The Korea Automobile Manufacturers Association supported policy for electrification of transport

21 April 2023

In a 6th April press release, the Korea Automobile Manufacturers Association (KAMA) supported enactment of Future Vehicles Special Act to establish EV support system including tax benefits for EV production facilities.

Korea Automobile & Mobility Association supports the enactment of Future Vehicles Special Act

21 July 2023

As reported by DNews on July 17th, the Korea Automobile & Mobility Association (KAMA) stated support for the enactment of “Future Vehicles Special Act”, which would help automotive parts-making corporates in the transition to electric vehicles.

KAMA advocates to abolish GHG emissions regulation or EV sales system

18 May 2022

On the 10th May, the Korea Automobile Manufacturers Association (KAMA) advocated to abolish either the GHG emissions regulations or obligatory EVs sales system of South Korea, citing a double regulatory burden, at a meeting with the European Automobile Manufacturers Association (ACEA) in Brussels.

Korea Automobile Manufacturers Association strongly supports the electrification of Korean transportation

30 March 2023

In a 24th March interview with Yonhap News, the Chairman of the Korea Automobile Manufacturers Association (KAMA), Kang Nam-hoon, strongly supported the legislation of ‘Special Act on Future Vehicles’ which includes tax supports and expansion of electric and hydrogen vehicles production sites in South Korea. The Chairman also called for investments in transitioning ICE vehicle production sites to EV production sites.

Korea Automobile Manufacturers Association Chairman supported regulatory measures for electrification of transport

05 May 2023

In an interview with Etoday on the 28th April, the Chairman of the Korea Automobile Manufacturers Association (KAMA), Kang Nam-hoon, supported government support to create an environment for enabling EV production of foreign automotive corporates, including GM Korea and Renault Korea. He also supported the enactment of ‘Future Vehicles Special Act’ for electrification transition in automotive parts corporates.

Entities Engaged on Policy

The table below lists the entities found to be most engaged with the policy. InfluenceMap tracks over 400 companies and 200 industry associations globally. Each entity name links to its full InfluenceMap profile, where the evidence of its engagement can be found.

Influencemap Performance BandOrganizationEngagement Intensity
EKorea Automobile & Mobility Association (KAMA) (formerly Korea Automobile Manufacturers Association)22AutomobilesAsia
E-Federation of Korean Industries (FKI)20All SectorsAsia
DKorea Chamber of Commerce and Industry (KCCI)26All SectorsAsia
N/AKorea Battery Industry Association (KBIA)2IndustrialsAsia
D+Lotte Chemical10ChemicalsAsia
D+SK Innovation Co12EnergyAsia
CLG Chem28ChemicalsAsia
C-H2KOREA13EnergyAsia
D+Korea Business Council for Sustainable Development (KBCSD)8All SectorsAsia
N/AKorea Electric Vehicle Industry Association (KEVIA)1AutomobilesAsia
EKorea Petroleum Association (KPA)12EnergyAsia
D+Hyundai Motor Group36AutomobilesAsia
D+Korea International Trade Association (KITA)14All SectorsAsia
D-GS Energy8EnergyAsia