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South Korea launches US $95 billion aid program to benefit environmentally friendly automobile industry
Jul 15,2020 16:44CST
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SMM: according to reports, South Korea announced plans to spend 114.1 trillion won (about US $94.6 billion) to launch a "New deal" to create jobs and help the economy recover from the epidemic, including "green" investment in electric and hydrogen-fueled vehicles.

The six-year plan says digital infrastructure will be built in the future to create a more effective security network for job seekers. What is more noteworthy is that in terms of the "Green New deal", South Korea will strive to reduce its heavy dependence on fossil fuels. "the new crown epidemic once again confirms that we need to deal with the global warming crisis as soon as possible," South Korean President Moon Jae-in said in a speech. "

The plan also includes investing in the smart grid, managing the use of electricity more effectively, promoting the development of telemedicine services, providing home office policies for businesses and online schools based on 5G wireless networks, and providing tax breaks for telecom providers. Mr Moon said the plan was expected to create 1.9 million jobs by 2025.

Mr Moon's ruling party put forward the plan in April before the parliamentary elections, setting an ambitious goal of achieving zero emissions by 2050, including ending funding for overseas coal-fired power plants and introducing a carbon tax.

But environmental groups have criticized these measures for not doing enough to control emissions. In a statement, South Korea's Greenpeace said: "the plan is a semi-finished product and lacks the goal and route to achieve zero emissions by 2050." With regard to the lack of a timeline for phasing out internal combustion engine cars, Lee So-young, a lawyer who helped draft the bill, said that the task of planning the timeline is difficult in major car exporting countries such as South Korea. "it is easier for countries dominated by automobile domestic trade, such as the UK, to plan the timeline".

President Moon Jae-in said South Korea plans to have 1.13 million electric vehicles and 200000 hydrogen-fueled vehicles by 2025, compared with 91000 and 5000 in 2019, and the government will add more car charging stations.

Hyundai and Kia are expected to sell 1 million electric vehicles by 2025, hoping to gain a 1/10 share of the global electric vehicle market, said Euisun Chung, head of Hyundai Motor Group.

Last week, Seoul announced that it would invest 2.6 trillion won in its "Green New deal" and stop registering cars with internal combustion engines after 2035. It also promised to upgrade 4000 of the capital's 7396 buses to electric or hydrogen-fueled vehicles by 2025, providing more incentives for taxi upgrades.

Seoul also plans to build 4000 charging stations for electric vehicles and 65 charging stations for hydrogen-fueled vehicles by 2035, according to W.S. Cho, an official in Seoul. At present, there are 1090 charging stations for electric vehicles and four charging stations for hydrogen-fueled vehicles.

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