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Busan Metropolitan City Launches “Busan Youth EV Dream,” Supporting Young Residents from Their First Car Purchase to Childbirth and Employment

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Busan Metropolitan City (Mayor Park Heong-joon) announced that, alongside 추진 of the 2026 electric vehicle purchase subsidy program, it will take the lead among local governments in implementing “Busan Youth EV Dream,” a policy designed to support young Busan residents who purchase electric vehicles—encouraging their economic activity within the region as well as childbirth and long-term settlement in Busan—while also advancing carbon neutrality through greenhouse gas reductions.

This policy was prepared to support the economic activity of young Busan residents who purchase electric vehicles and to help create an urban environment in which young people can live well.

Through measures such as additional electric vehicle support for families who have given birth—introduced nationwide for the first time in 2025—Busan Metropolitan City supplied a record-high 9,700 electric vehicles. To sustain the momentum of broader adoption this year as well, the city will implement “Busan Youth EV Dream,” an initiative to expand electric vehicle adoption among young Busan residents.

The electric vehicle purchase subsidy program is carried out in two phases each year, in the first and second halves. In the first half of this year, 5,023 vehicles are eligible for support (4,126 passenger cars, 846 freight vehicles, 38 buses, and 13 children’s commuter vehicles).

Subsidy amounts are up to KRW 7.54 million per passenger vehicle, up to KRW 13.65 million per freight vehicle, up to KRW 91.00 million per bus, and up to KRW 150.00 million per children’s commuter vehicle. Subsidy amounts, however, are provided on a differentiated basis depending on the purchase price of the vehicle.

In addition, Busan Metropolitan City will implement “Busan Youth EV Dream,” providing up to KRW 2.00 million in support for young Busan residents who purchase electric vehicles.

Young residents living in Busan who are making their first car purchase, have recently given birth, have obtained employment, have started a business, or are young persons with disabilities will receive additional support of up to KRW 2.00 million. To this end, participating manufacturers and importers in the Local Discount Program—such as Hyundai Motor Company, Kia Corporation, KG Mobility, and EVKMC—will also provide KRW 500,000 to eligible young Busan residents at the time of purchase.

A young resident who has multiple children and has recently given birth, when purchasing a passenger electric vehicle, can receive up to KRW 7.54 million in the basic subsidy, up to KRW 3.00 million in the multi-child subsidy, plus an additional KRW 1.50 million in support for young residents who have given birth under “Busan Youth EV Dream,” and an additional KRW 600,000 through the local discount—totaling up to KRW 12.64 million in support, which is more favorable than in other local governments.

Busan Metropolitan City will also continue the “Local Discount Program,” first introduced nationwide, for a second consecutive year.

Under the Local Discount Program, when Busan residents purchase an electric vehicle from a participating company, the participating manufacturer or importer provides a discount of up to KRW 300,000, and Busan Metropolitan City provides additional support of up to KRW 300,000.

Last year, through the Local Discount Program, 4,892 Busan residents who purchased electric vehicles received KRW 4.89 billion in total discounts. Busan Metropolitan City is currently recruiting additional participating companies for this year. At present, four companies—Hyundai Motor Company, Kia Corporation, KG Mobility, and EVKMC—have decided to participate in the first-half distribution program, and the city plans to expand participation going forward.

To accelerate the transition from internal combustion engine vehicles to electric vehicles, Busan Metropolitan City decided to strengthen electric vehicle support measures to improve air quality and reduce the financial burden on ordinary citizens, including providing conversion support of up to KRW 1.30 million.

When replacing an internal combustion engine vehicle (excluding hybrids) and purchasing an electric vehicle, up to KRW 1.30 million in additional support is provided. In addition, small business owners purchasing freight vehicles receive an additional 30 percent of the national subsidy amount, while for delivery vehicles and for farmers, an additional 10 percent of the national subsidy amount is provided when the support conditions are met.

Additionally, for those in the near-poverty bracket or below, and for those purchasing an electric passenger vehicle for the first time in their lifetime, an additional 20 percent of the national subsidy amount is provided. However, depending on the vehicle purchase price, recipients may become ineligible for benefits such as the Basic Pension, Disability Pension, and public rental housing. Applicants are therefore advised to review the details carefully before applying and purchasing a vehicle.

Eligible applicants include individuals aged 18 or older who, as of the application date, have maintained an address in Busan Metropolitan City continuously for at least 60 days, as well as corporations and public institutions. Applications for subsidies can be submitted starting today (28). After a purchaser buys an electric vehicle, the manufacturer and dealership apply for the subsidy for the relevant vehicle through the Ministry of Environment’s Zero-Emission Vehicle Integrated Portal (www.ev.or.kr).

If a vehicle is purchased under joint ownership by two or more persons, all co-owners must be residents who have continuously maintained an address in Busan for at least 60 days prior to the application date.

In addition, as in last year, the repurchase restriction period is two years for passenger vehicles and two years for freight vehicles. For sole proprietors and corporations, one vehicle may be supported under the local government subsidy program, and from the second vehicle onward, applications must be submitted through the Korea Environment Corporation. If a vehicle is transferred within two years of the registration date, approval from Busan Metropolitan City is mandatory.

Mayor Park Heong-joon stated, “In 2025, we were able to supply a record-high 9,700 units through distribution policies uniquely tailored to Busan,” adding, “This year as well, I hope that together with young Busan residents, we can serve as guardians of air quality and contribute to building a Busan where young people can have and raise children and engage in economic activity in a better environment.”

Further details regarding support are available in the Notices/Announcements section on the Busan Metropolitan City website (https://www.busan.go.kr/nbgosi).