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Busan Metropolitan City Expands Subsidies for Electric Vehicle Purchases in the Second Half of 2025

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Busan Metropolitan City (Mayor Park Heong-joon) announced that it plans to accelerate the adoption of electric vehicles in the second half of 2025 by expanding the “Electric Vehicle Purchase Subsidy Support Program,” following the success of the initiative in the first half of the year.

The “Electric Vehicle Purchase Subsidy Support Program” is implemented semiannually. For the second half, the city is accepting subsidy applications for a total of 4,805 electric vehicles, including 3,913 passenger cars, 722 trucks, 160 buses, and 10 school transport vehicles.

In the first half of the year, Busan supplied 2,895 electric vehicles (2,413 passenger cars, 442 trucks, and 40 buses), marking a 58% increase compared to the same period in 2024. To maintain this momentum, the city has significantly increased its subsidy quota for the second half.

The subsidies remain the same as in the first half:

• ●Up to KRW 18.1 million per passenger car

• ●Up to KRW 13.8 million per truck

• ●Up to KRW 35 million per school transport vehicle
  Note: The final subsidy amount varies based on vehicle price.

Previously, individual business owners were eligible to receive subsidies for only one vehicle, but starting this second half, they can now receive support for two vehicles—one as a business owner and one as an individual.

With the expanded eligibility for individual business owners, it is expected that more cost-effective electric vehicle purchases will become feasible, helping to reduce maintenance costs and improve business operations.

In addition, the city will continue to promote its pioneering incentive programs such as “Aijoa Busanjoa” and the regional discount scheme to encourage broader electric vehicle adoption.

The “Aijoa Busanjoa” program, first introduced nationwide in Busan in 2025, provides up to KRW 1.5 million in support to families with newborns who purchase an electric passenger car. The initiative has proven effective in addressing declining birth rates and will continue in the second half of the year.

The regional discount scheme provides additional incentives when citizens purchase electric vehicles from participating local dealers. Under this program, participating companies offer a discount of up to KRW 500,000, while the city provides an additional subsidy of up to KRW 500,000. Due to high demand, the initial 2,000-unit allocation was depleted early in the year. Therefore, another 2,000 units have been added for the second half, ensuring continued benefits for citizens.

Furthermore, the number of participating dealers in the regional discount program has increased from 3 in the first half to 10 in the second half, giving citizens more vehicle choices.

Meanwhile, to improve air quality and reduce noise pollution, the city is also currently accepting applications for subsidies for electric two-wheelers. In the first half of the year, 144 electric two-wheelers were supplied. To further accelerate adoption, the city plans to distribute a total of 856 units in the second half, including remaining units from the first half.

Subsidies for electric two-wheelers vary by type and performance:

• ●Up to KRW 2.3 million for lightweight

• ●Up to KRW 2.7 million for small

• ●Up to KRW 3 million for medium

• ●Up to KRW 3.3 million for large vehicles

Subsidy applications are submitted by manufacturers and dealerships through the Ministry of Environment’s Zero-Emission Vehicle Portal (www.ev.or.kr) after a vehicle is purchased.

For more detailed information, please visit the city’s official website at www.busan.go.kr/nbgosi.

Lee Byeong-seok, Director General of Environmental Affairs, stated,

“The two-year re-purchase restriction period for passenger and commercial electric vehicles will remain in effect. We ask for active interest and participation from citizens, as we are strongly promoting the electric vehicle and electric two-wheeler subsidy programs to improve air quality and achieve carbon neutrality.”