Zero Emissions Vehicle (ZEV) Policy

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.