Busan targets 7,174 EVs in 2026 amid surging subsidy demand

Busan Metropolitan City has announced plans to actively implement its 2026 Electric Vehicle Supply Project, targeting the distribution of 7,174 electric vehicles to the private sector this year amid a sharp rise in applications. As of March 2026, the city had received 2,250 EV applications, approximately 2.7 times the 835 recorded in the same period last year, with demand rising across both passenger and cargo vehicle categories.

The city recorded 1,832 applications for electric passenger vehicles, up from 678 a year earlier, alongside 418 electric cargo vehicle applications compared with 157 in the prior year. Busan said it will monitor supply conditions continuously and adjust allocations by vehicle type to prevent early exhaustion of subsidy quotas, a problem that has affected some other South Korean local governments as EV demand grows.

To reduce the financial burden of EV purchases, Busan is running two support programmes alongside standard subsidies. The Busan Youth EV Dream initiative provides up to KRW 2 million (US$1,390) in additional support for young buyers, including first-time purchasers and those who are employed or starting businesses. Participating manufacturers, including Hyundai Motor Company, Kia, KG Mobility, EVKMC and Centro AK, provide a further KRW 500,000 (US$350) per vehicle at the point of purchase.

A Local Discount Programme offers citizens a combined benefit of KRW 600,000 (US$420), comprising a KRW 300,000 manufacturer discount and an equal KRW 300,000 contribution from the city.

Source: Busan Metropolitan City